Before the development of creative data specialists, online tools and in-house data manipulation, data bureaux sourced, standardised and managed data. Experts used sophisticated systems to check data against various suppression lists to ensure that it complied with the legal requirements, as well as cleaning and formatting data for use.
In short, bureaux were dedicated to creating the database specified by their client. They did not own data, neither did they deliver particular marketing activities. What they did do was turn miscellaneous pieces of information into a useable form.
Over the last three or four years the data market status quo has changed. Data owners, specialist data consultants and data users increasingly understand in theory at least how to make information work for their businesses. The pool of experts handling data now spreads far more widely than the traditional data bureau. Such bureaux have had to improve the quality of their offering or develop their portfolio to stay in business.
“Data bureaux are infrastructure providers and sit between a business’s IT and marketing functions,” says Ian Johnstone, managing director at Qbase. Traditionally, bureaux amalgamate and transform data from different data sources for use in DM campaigns.
Hands-on approach
Increasingly however, the aggregation of data is used to build marketing databases and sophisticated communication tools. Marketers now take a more hands on approach to the management of data and bureaux are expected to provide an interface to allow marketers to manipulate data as they wish for various campaigns; each database is rebuilt on a regular basis and often hosted by the bureau. Most interfaces are accessed via a Web server and the expectation is that soon all interfaces will be accessed via the Web. David Eldridge, CEO of Alterian, says, For those businesses which want to gain competitive advantage from their data, but don’t have unlimited internal IT resources, bureaux offering such services will remain a key part of the mix.
Bureaux also clean and deduplicate databases for data owners and check the legalities of the data owners’ hold against the various preference services. The extent of a bureau’s access to suppression lists is one of its key strengths according to Lee Waite, director of Flamethrower. There are multiple suppression lists against which data must be run to make the database comply with the law, he says. Using a bureau can make the whole process much easier, quicker and cheaper as it’s what the bureau specialises in. Johnstone agrees, adding, Data owners don’t, even now, generally do this themselves as it is a skilled task which generates little profit to those not used to handling such matters all the time. Says Richard Lee, managing director of Blue Sheep, In the future data bureaux will probably specialise even more in providing niche data, and will concentrate more of their business on providing data to SMEs.
A major weakness in the bureaux system is that they are not subject to industry regulation. The lack of any independent control of standards leaves good bureaux vulnerable, exposing them to criticism aimed at less-proficient peers. Johnstone says, Big fulfilment companies are now claiming to be bureaux to shore-up their revenue, but they don’t have the infrastructure investment, training or experience. The same is true of some list brokers. Bureaux need to ensure that they have secure encryption, storage and transfer procedures and an audit trail.
Pick and mix services
Many experts believe that list owners, already used to handling large volumes of data, have moved into areas traditionally handled by data bureaux as a way of adding value to their existing products and services. Clients often choose businesses offering a number of different services as they can pick and mix the services they require without employing more than one organisation.
Creative agencies have also taken on some of the traditional work of data bureaux. Says Lee, There is evidence that marketing services providers (MSPs), which offer prospect pools as part of a wider end-to-end communications solution for marketers, are better able, through the strength of their offerings, to reach key decision makers higher up the marketing ladder and sell their complex solutions which include data. As bureaux services are typically sold to marketers at a lower level MSPs are beginning to steal a march on bureaux by influencing top-down decisions from an audience that bureaux can’t attract.
Some of the movement in the market has been prompted by the increasing emphasis put on acquiring a single view of each customer. As the importance of a single view is stressed, businesses naturally question why they need to go to different agencies merely because the channel of communication differs. As Eldridge says, Pragmatically, even if bureaux excel in their traditional areas, it’s very difficult nowadays to ‘sell’ that to marketers without including all the value added services.
Because of the need to offer a one stop shop many data bureaux are putting their data knowledge to work and offering analytic services to their clients, based on a deep understanding of their data plus expertise in given industries.
Eldridge explains, Such services can be cost effective and provide continuity of knowledge and skills for those marketers who do not have access to their own, consistent analytic teams.
Know your bureau
Businesses should use data bureaux when they are looking to complement existing data either for a particular campaign or to reach a specialist audience, comments Lee. Every bureau has core strengths, usually indicated by its history, where its main expertise lies. In addition bureaux may have growing expertise in new areas of diversification.
Marketers looking for a good data bureau should get references from the bureau’s customers and particularly query the length of time the two have been in partnership.
Changing bureaux is an expensive and possibly risky business so good bureaux tend to retain customers for years. Marketers should look at the type of data the bureau handles, plus the breadth of the data processing conducted and can test its capability by using a sample of their own data. They should also query how their data sample compares with others in the market, its quality and what the bureau can suggest to improve it. Responsible bureaux will also demonstrate their security procedures and audit trail. Exact numbers vary but most experts agree that there are only about half a dozen reputable bureaux skilled at handling B2B data.
The type of data processed now includes a greater mix of online information, says Ian Hitt, MD at Abacus Direct, but the choice for marketers between a traditional bureau and an online solution will be very much driven by the volume and diversity of the data they require. For simple data screening and audits, an online solution can provide a flexible and cost-effective solution. However, Hitt continues, when you’re dealing with multiple files, complex splits and detailed reporting, the traditional approach works far better.
It would be wrong to liken the changes in the data market to a pitch invasion of the data bureaux home ground. More accurately, the entire data industry is evolving rapidly and all organisations within it are being forced to examine their current and potential products and services. As some organisations take on work traditionally the province of data bureaux, so some bureaux are expanding into other roles. Those which are not are either concentrating on becoming best of breed, or struggling to survive.
