Traditionally, there have been problems attached to gathering data from a number of European countries. It is time consuming and because data arrives in varying formats and is collected according to different criteria, it is difficult to assess quality.
However, over the past three years EuroContactPool (ECP) has been compiling a pan European database with a view to iron out these irregularities. Says ECP’s sales director Hakan Axelsson: We are approaching several countries using a standard database model to make the process and selection the same across all countries, so that the data looks consistent.
The company is choosing one partner in each country and quality is crucial. We have been in the business 25 years and have selected by reputation, our own experience and other people’s, he says. We have surveyed the way each company works to ensure sources are compatible.
We monitor continually to ensure high quality and resolution, says Axelsson. We know our partners invest a lot in their local database and we have full coverage of the business universe in each country.
The company has 13 partners, with Norway completing the Nordic picture (ECP is Swedish) and the objective is to cover the entire EU, including new entrants such as Poland and Czech Republic in the first half of this year. Switzerland is also on the hit list, as is Russia, a big trading partner of the EU.
ECP is also looking for resellers. LBM Data and Information Arts have taken on this role in the UK. LBM also supplies the UK element of ECP’s database. Axelsson of ECP, says, Information Arts does not own data but it works with clients on a strategic level to use data creatively and intelligently to create models. It is about quality not quantity: it is not a numbers game. he says. We are careful to pick companies that add value.
More coverage, less depth
The UK has one of the best developed direct marketing industries in Europe an international market that is highly competitive it is no coincidence that the UK hosts the biggest DM show, IDMF. As a result, it is often the test-bed for US entry into Europe.
Verran Townsend, director of LBM Data, says We sell ECP’s data and when our clients need European data, we can source it from there. It is generally great but it shows head offices only, so if we need sites such as retail chains, we go to a local provider. We operate on a pan-European basis Europe is a growth area for many organisations and the number of providers of pan-European data is small, he says.
LBM Data will also be working with ECP to apply some of its modelling expertise. Townsend says, for example, In the UK we might estimate how much a company is spending on office supplies or in IT, how many mobile phones it might have. The relationship is a starting point for adding a lot more information.
Information Arts’ involvement with ECP reflects its strategy to develop its pan-European practice this year. Simon Lawrence, joint managing director for Information Arts, says, We are seeing a lot of growth, with companies’ wanting to build up pan-European market solutions, rather than operating by country. The key element is prospect data for executing lead generation campaigns. He continues, There are very few creditable sources for pan-European data and ECP has done a job we thought we would have to. We see ourselves as their solutions partner in Europe. The data is equivalent to Companies House in the UK. We are going for coverage rather than depth: it is not very detailed about specific decision making contacts but we can source that on a case-by-case basis.
Axelsson of ECP, says, We always have the MD, purchasing manager and IT manager but would like to have as many responsibilities as possible. For the majority of countries, we also have sales, marketing, finance and HR managers and sometimes operations.
The other contenders
Simon Lawrence of Information Arts says Dun & Bradstreet is the only other company that provides a similar European data service. It has the advantage of Dun’s Principal, which is a method of linking companies together, but does not have the best coverage of all businesses. ECP is closer to best-of-breed than anyone, he says. It provides basic data-related products and services, but does not do sophisticated modelling and data-driven programmes. We give them access to revenues they cannot access and if they find someone who needs what we do, they put us forward.
Other data companies cover selected European countries; including Bertelsmann, which holds data from more than 19 countries, with its own sets in Germany, Austria and Switzerland. Information in Germany comes from the Statistical Bundesamt (equivalent of Companies House) and is divided into numbered industry segments according to the standard European standard NACE, which ECP also uses.
Heidi Bremner, international sales director for Bertelsmann, highlights the anomalies inherent in dealing with a number of countries. In some countries we get more detail than in others. In Germany we can do credit checking but not in Poland for example. ECP and Bertelsmann are in discussions regarding partnership in countries not represented in ECP data.
Experian uses Bertelsmann’s lists for Germanic countries and has data assets in Denmark and Norway. Experian’s commercial data is detailed the company’s financial make-up, senior decision maker, contact details, what the company does and the board. Richard Lloyd, managing director Experian’s business information division, says, Prerequisites for partners are coverage of economic data and accuracy but quality outweighs coverage. We have not used ECP but are due to talk with them. Their database is based around contacts rather than depth of data.
Can it work?
Zina Manda, sales director for Mardev, raises questions. I am intrigued by what ECP is doing because Mardev attempted it 10 years ago but it failed because we had data in each country, rather than pooling it. She recognises that technology has moved on and the speed and cost of updating records has improved.
However, my remaining concern is how often are they going to update files and how ECP will deal with the inconsistencies of data and data protection legislation in different countries, she says. If someone has opted out of one or all forms of communication, they need to be checked off the list quickly. There should be rigour around meeting data protection standards. She has a point the new accession countries have not yet opted for the EU standard.
We were approached to be party to the ECP list but it was not going to be possible for someone to take our data away and do an immediate suppression of unsubscribes through a daily update, Manda adds.
Lloyd of Experian also makes this point: There are good data sets in Poland but they are some way off the UK’s sophistication in keeping data fresh, use of suppression files and segmentation tools.
Bridled optimism
ECP is fully aware of the importance of high standards in this area. Opt-out is handled according to each country’s regulations and local suppliers apply the Robinson List (suppression list) before delivering data, says Axelsson of ECP. In most countries an official list is required only for consumer data but there is an EU legal requirement that data can be used for only one month after cleaning against a suppression file.
We take data every month from local suppliers it’s their core business so their database is always updated, Axelsson says. Most of them take data from the equivalent of Companies House.
Manda of Mardev is also chair of the List Council of the Federation of European Direct & Interactive Media (FEDMA). There is usually scepticism about big files how good can they be? How can anything claim to cover 25 countries with any consistency or depth?
Manda emphasises the importance of context. If someone is selling a high-end IT solution, data should be collected from a source such as good B2B computer magazines rather than non-IT specific lists. I am not sure how ECP will do the necessary depth.
Axelsson says, We have full coverage of the business universe in each country and work with clients to enhance their databases. We are often asked to append information to existing files so that our clients can understand their customers better and come back to us for certain prospects.
So far, business has been good. We have been meeting all our targets for sales, Axelsson says.
He adds, we are not generating the levels of revenue that more established companies are, but I am sure 2006 will be an exciting year.
