1. Before you start
Take time to analyse the data you already have so that you can define what you need accurately. Marketers must audit their data to determine its accuracy, how it is being used, whom they are targeting and whom they want to target. They should in effect ask What information do I already have and what do I need to make best use of it?’
2. Understand the reason for the contact
The reason behind the communication can fundamentally change the way the contact is made. Relationship building, brand awareness, lead generation and direct selling are just some of the reasons why you might decide to contact a company. Each type requires a different approach and hence different data.
3. Decide on your audience
Before approaching a data supplier consider the target you want to reace, your message, the means of communication, and the timing. Then consider the specialist providers and selection options. Marketers should build a specific brief which outlines requirements from the supplier, including any added-value information that is needed.
4. Check the suppliers’ credentials
Find out how reliable the supplier is. Make sure that suppliers are members of the Direct Marketing Association (DMA), are registered under the Data Protection Act and are on the list warranty register. The register is held by the DMA and provides an assurance that the data on the lists registered has been collected lawfully, is up to date and complies with relevant codes of practice. Registration also provides for the DMA to be an arbiter in case of complaint.
5. Consider how data suppliers treat their customers
Look at the sales approach and see whether it’s consultative. Does it challenge strategy, goals and targets? Is it orientated around expected results? Does it go beyond a transactional discussion? Marketers should also ask to see valid, recent case studies where the supplier can describe how the data was used and demonstrate campaign results.
6. Ask where the data comes from
Data suppliers should be clear and transparent about their data sources. Some sources may be less reliable, and some more useful for providing particular sorts of specialist information. Be wary of vague answers or claims of third party confidentially which prevent a clear view of the source of the data. Suppliers need to be clear about whose data they buy in, and what value they add to the data. The names on some popular lists have been contacted too often and have become wary of further communication. Ask how frequently the data has been used and what guarantees can be put in place against its over-use.
7. Ask how frequently data is updated
One of the biggest hindrances for B2B data is the rate of employee turnover. It is vital that databases are regularly refreshed to ensure that contacts remain up to date. You should ask how frequently and by what means the data file is updated, plus how often the whole file is completely renewed. You should also check that data has been run against all relevant suppression files.
There is general agreement that data should be kept as up-to-date as possible, but opinions vary about how frequently updating should be done. Ask a supplier’s policy on the age of the data they are selling and what quality controls are in place.
8. Determine level of penetration
When deciding the target of the campaign you need to be sure your supplier can get data to the detail you require. The SIC code, for example, doesn’t get down to the level of detail. Marketers should ask whether the supplier can identify and provide the name of the decision maker or other appropriate contact. The size of a database is not necessarily relevant to what you need. Aim at quality rather than quantity when it comes to information.
9. Get creative
More and more marketers are using bespoke data. Speak to data providers and select one that can add value to data with tools and models that can actively enhance your direct marketing activity. The data may cost more, but the ROI is almost certain to be higher.
10. Consider the follow-up
Initial contact with the target audience is only the first stage of any marketing campaign. An email marketing campaign followed up with telemarketing gives a much better prospect than a straight cold call. Because of the measurability of email, it is possible to see who opened your email and when they opened it, allowing a call to be timed whilst the communication is still in the recipients mind. For accurate and appropriate follow up the supplier needs to be able to provide integrated on- and offline data.
11. Negotiate a guarantee against goneaways
DMA best practice guidelines state that data should be a minimum of 94 per cent accurate. In other words, no more than six per cent of the data should incur goneaways. Some suppliers offer a two-for-one guarantee, i.e. they will offer their customers two additional contacts for every one gone away. Such agreements do not, of course, guarantee the quality of the contact offered, but do supply some indication about the suppliers belief in their data’s accuracy.
12. Know your budget
Yes, it sounds obvious, but knowing what sum you have available to spend on data doesn’t necessarily mean going for the cheapest option. Knowing the budget does however prevent you organising your campaign around additional services you cannot afford. Data prices differ greatly due to the quality and the information held, so knowing what your budget is can help you make the choice of what is important to you.
13. Buy or rent?
Data requirements and use may change over time. Data can be purchased on different licences. Make sure that the data you purchase allows you to fulfil all your campaign requirements – and be aware of what internal resources you have available to make the most of it and the responses it generates.
14. How much?
Rates vary considerably depending on the type of data and whether it’s for a single use or for use over a period of time. If a lot of research has gone into making the data more accurate, it will also cost more. Marketers can expect to pay between £100 and £1000 per thousand records, but should check with suppliers whether they have a minimum order value, which could increase the unit cost per record. Obviously, any marketer buying significantly high volumes of data should be able to negotiate a discount.
15. Set the demarcation lines
Decide what you want to handle in-house and what the supplier will be expected to do. Be clear on what you want from a vendor and be realistic about your own abilities. Tasks such as de-duplication you may be able to do in-house, but they may be more efficiently and effectively handled if left to data professionals.
