While the overall news agenda has been dominated by the effects of the economic downturn, reports in the marketing world have thrown business data back into the spotlight.
The Direct Marketing Association’s recently launched environmental standard PAS 2020 calls on companies to ensure they maximise the efficiency of data by regular suppression and cleaning lists.
In addition, the announcement that a number of major firms, including Royal Mail and British Gas, have signed an Information Commissioner’s Office pledge to ensure they handle client data responsibly has shown that the issue remains as important to the direct marketing industry as ever.
The Personal Information Promise calls on firms to make it clear to consumers that they are committed to safeguarding the information they have on them, and at the launch of the new pledge, the Information Commissioner Richard Thomas described data as “good for business”.
It appears that this is a view shared by another industry expert, the Federation of European Direct and Interactive Marketing’s (FEDMA’s) marketing and membership manager Jorgen Nygaard Andreassen.
He has claimed that business data can be “absolutely crucial to the success of the campaign”, adding that firms should remember the simple phrase that “the better the data, the better results”.
The expert also suggested that the quality of lists can improve direct marketing by up to 80 per cent, depending on the product or service that a growing business is attempting to promote.
However, one of the major questions about business data is how and where should firms get their data from?
Two main options are available – as companies can either collect information themselves or approach a third-party source for help with the task – but Mr Nygaard Andreassen made no secret of which tactic he personally recommends.
“It is much more effective to buy or rent a list because then you get the added values included. To build a sustainable list takes a lot of time and money,” he explained.
He said that companies need to be prepared to ask suppliers about the meaningful return on investment (MROI) they could get from buying such business data, adding that providers should be able to give them information about the list’s impact on similar campaigns or response rates.
“[What is] important here is that the client is absolutely clear about what their target MROI is,” he advised.
So while it remains to be seen whether business data will continue as a major talking point in the direct marketing industry, it appears that it will be key to the promotional efforts of growing businesses across the UK for a very long time.
To discuss any aspect of Direct Marketing or Data Cleansing, contact us. W8Data can help you decide how to get the most from your data.