We all know the problems with B2B data: it decays at a frightening rate – 40 per cent a year, according to some experts – and since the introduction of the Data Protection Act it has been even more difficult to acquire, maintain and use. Most B2B marketers are also aware that they are targeting the same leads over and over again, generating diminishing returns from increasing investment.
All this is a major headache for B2B marketers. For all the incisive marketing strategies and sparkling creative, without good, fresh data it’s fighting a losing battle. It is little surprise then that more and more companies are promising to solve these data problems. It is even less surprising that B2B marketers are keen to hear what they have to offer.
The UK business universe
The root of the problem with B2B data is very simple: almost all B2B data comes from Companies House and Thomson Directories. They are the only two significant sources of business names and addresses. However, the information they provide is extremely limited and – because every B2B marketer uses them – the data from these two sources is usually very tired.
Iain Lovatt, executive chairman at Blue Sheep, recognised this problem way back in the early 1990s, and in 1994 attempted to solve it with the invention of a data product called UK Business Universe. This combined data from Companies House and Thomson Directories together with telephone research files such as Corpdata and Market Monitor.
Blue Sheep still sells this product, which brings together over 14 positive files with the Fax Preference Service, Telephone Preference Service, Mailing Preference Service and a gone-away file. Lovatt says, “As the B2B space has no single database that contains a comprehensive set of UK business information, companies are forced to fish in a variety of information sources for different data.”
He continues, “If you want phone numbers then you need to use Thomson or Yellow Pages but even these are not 100 per cent complete sources of business information. And if a company wants to cover businesses with a turnover of £250,000 it has to use Companies House, which again only covers companies with limited liability and doesn’t cover any public sector businesses or partnerships.”
So, B2B marketers have been able to go to the UK Business Universe for a single solution. All the duplications have been removed, as have the gone-aways. Lovatt claims this has provided Blue Sheep with greater coverage of their market, leading to more effective campaigns, and, best of all, it has cost them no more than going to the original data sellers.
Different universes
The idea was understandably popular and has been replicated by many other companies. For example, Marketscan has its Megabase. Sourced from the UK’s top data providers – including Thomson Directories, Companies House, LBM and Corpdata – it contains details of over 3.4 million companies, 5.5 million decision makers and 500,000 email addresses.
Julie Knight, MD at Marketscan, says, “Data can be enhanced by populating records with a wide range of variables. For example, one source may provide financial data and not employee numbers, while another source may provide contact names but not email addresses. This results in companies only appearing once at any particular site within the database. By using a composite database such as Megabase marketers can avoid all the work of merging and de-duplicating.”
Ultimately, by using the strengths of each individual data provider these composite databases are more comprehensive than each would be on its own. While Thomson has 1.8 million business names, each with only one contact name, Corpdata provides many contact names. Combining the two produces the most useful data. Furthermore, receiving monthly updates from four sources helps to keep the file fresher.
So, given the demand for better B2B data, will we continue to see more and more composite data providers launching? Knight believes not. She says, “To create and develop a comprehensive multiverse file requires a high level of investment and processing capability. Given that we’re unable to charge more for them, I don’t think we will see a large increase in the number of providers.”
The multiverse
Yet, there does appear to be room for the market to grow further. Last year Mike Housley launched new data provider Cyance, and in March it unveiled Multiverse, yet another composite database.
Housley explains, “There have been previous attempts to produce the B2B universe. Our solution combines four of those universes to create a multiverse.”
He is unwilling to reveal which sources he is using, but says they are four of the largest and longest-standing data providers, each of which contain around two million businesses. While there may not be anything new in the idea, he believes his solution does represent a step forward. “Our combination of data providers is, quite simply, better than others’,” he claims. “Also, unlike many of our competitors, we’re independent, so we’re focused on giving our clients the data they need rather than on building a database for another purpose.”
Housley was surprised by just how little overlap there was between his four data sources. He says, “One of the providers covers most of the market, but we also expected there to be quite a bit of overlap between the other three. However, only 21 per cent of the records did overlap. That meant we’ve been adding over a million to each individual data source. There are around 3.8 million records in total, so marketers can get much better coverage.”
Your own universe
The enduring success of these composite databases is evidence that B2B marketers are keen to achieve greater breadth of coverage. However, many believe that in the future the emphasis will shift to depth of information.
Jon Pope, chief operating officer at data provider Information Arts, says,
“Ultimately these composite databases are nothing more than a re-packaging of the basic business lists. That’s why they’re becoming a commodity. Where business data becomes really exciting, is when you add in external information such as consumer behavioural data.”
Annette Holmes, MD at list brokers Prospect Swetenhams, agrees. “To have long term value, and ensure the most accurate profiling and modelling at the outset, the starting point should always be the analysis of the existing client base, which should then be profiled against the complete business universe. Suppliers can then enhance this data by sourcing and enriching the universe with data sets relevant to the client.
These are based on transactional data, subscriber lists, delegate data or time-triggered data such as contract renewals.”
So, in conclusion, as we become ever more successful at mapping the extent of the universe, it is becoming increasingly important to understand more about its contents, and to identify the part of it that is most relevant to your campaign. Business data has made important strides forward in recent years, and it looks as though it will continue to do so in the future. For B2B marketers, however, these improvements cannot come soon enough.
