In the world of Direct Marketing, data is king. Creative, lists, strategy all have important roles, but data is absolutely king. It’s all about the data. It’s your #1 asset and it’s what generates you money.
Within every database lies endless potential for disseminating, modifying, profiling, projecting, appending, … – the list goes on. But therein lies the problem too: data overload. Where do you start and how deep do you want to go to optimize your data for more profitable campaigns? This is an especially difficult question for smaller marketers with limited budgets. There are some simple steps you can take with your data that will help realize substantial cost savings.
Here’s a few easy data wins that WILL make a difference to the bottom line:
Clean your data – Data capturing is not an exact science, and errors in data entry happen all the time. Typos, missed or misfiled information, double entries, etc…. These are all common occurrences. If you’re actively using the data in your database for promotions, in particular print or email, it’s advisable to regularly clean your database to avoid potentially costly data errors. Consider the impact of simply removing duplicates with merge purge processing – not only will this save on mailings costs, but it will also preserve your reputation by not overloading your customers with identical promotions.
We had one client approach us with their database and asked us to just mail it ‘as is’. Before simply running all 3,000 records right over to the printer, we ran a simple merge and found nearly 20% of the data to be messy. Had we simply ‘just mailed it’ as the client wanted, that could have been hundreds of wasted dollars, PLUS potentially tarnished the client’s reputation by having misfiled information in their mailings. Needless to say a quick $75 data processing job saved this client considerably more than it cost.
Update your data – Are you checking your data against movers files or deceased files? Are you suppressing regularly against Do Not Mail files? These files are all updated regularly for most markets, and it’s advisable to keep your data updated to maximize your ROI for each campaign. When you’re sending personalized communications, if you’re not on top of your data and keeping it updated then your mailings could quickly become inefficient and costly.
As a side note, consider your matches against movers files as an opportunity – could a non-personalized mailing to the vacated addresses work as a new customer acquisitions? Depending on your products or services, it could represent a new source of viable prospects.
Refresh your data – ok, I’m cheating a bit with this one, but it’s vital to keep your database updating with new records. This is where lists and creative play a bigger role in bringing in new customers and keeping your existing ones. We’re all familiar with the Pareto principle, that 20% of your customers will represent 80% of your business, and this holds true in Direct Mail as well. The problem is that this 20% is a changing group, and you need to be constantly updating your database with fresh data to ensure you offset those customers that WILL leave no matter what you do. So keep your data fresh and relevant by working with a qualified list broker to acquire good prospect lists and targeting them with good creative.
Of course you can get as sophisticated as you like with your data, and there are numerous companies offering services to help mine and refine your data in infinite ways. However, just starting with the simple, easy steps above will help boost your mailings’ bottom lines.
So how good is your data? Send us over a sample file and, at no charge, we’ll run a complete diagnostic to see what savings you could be realizing. Talk to our data experts today to learn more.
