There is no shortage of available data for marketers. The amount of data being collected has increased, leading to an increase in unusable data - (just because it’s available and collected doesn’t make it actionable or accurate.) Inaccuracies within databases have been shown to have negative effects on marketing KPIs such as: engagement, ROI and impressions.
Over the years we have learned that the key to building your database starts with being able to decipher what data is valid, and what is not. Knowing what to look for and being able to determine inaccuracies far outweighs any sophistication in algorithms built on top of the data afterwards.
We previously discussed an example of these inaccuracies in creating customer profiles through cookies in our article Put The Cookie Down.
As a full-service direct marketing agency, our goal is to develop programs that help businesses build successful ROI’s. Many of our clients have approached us and asked how to utilize their databases to create more effective marketing campaigns. It starts with reducing the waste in their data so marketing dollars are spent actually reaching the intended audience. In each stage it’s important to look for opportunities to reduce waste and optimize the data being pulled. This process includes collection, analysis and implementation.
The type of data being collected, and the intent of that data, will help determine how reliable it is. In the instance of cookie data, it shows which sites a user has visited but is not as reliable as first party data to make conclusions about an individual’s purchase behavior. For example, opt-in data with an email confirmation helps to build an accurate profile, because it comes directly from the user. What activity is motivating the individual to provide that data is important to help filter and determine how it will be used to impact the bottom line. The data being collected does not always have to serve marketing purposes, but can also help serve other aspects of your business such as: customer relations, product development, business development, etc. The key point to remember when collecting data, is to make sure the data being collected has an actionable purpose.
Establish a regular frequency for collection and cleansing. Collecting and cleansing data upon input or regular cleansing will ensure that your company is taking action on gathering the most up-to-date and accurate data. Companies often overlook this step during the evaluation of their databases causing issues with cleanliness and accuracy. For example, we can find non-deliverable email addresses (accuracy) or consumers who have not interacted with your company within the last year (frequency). Spending money to reach out to these consumers often leads to wasted dollars and lower response, both of which can negatively impact ROI.
With the introduction of AI and machine learning algorithms, it is easier than ever to glean specific insights from your databases. At DBM Group, we make a concerted effort to provide our clients with custom marketing solutions based on an analysis of their data. For example, with access to our clients’ loyalty database, we are able to build their specific “Ideal Consumer Model”. Read more about our customer scoring models and loyalty programs here.
Based on the above approach, we can customize and design a multi-channel marketing campaign that are hyper targeted to their ideal consumer, reducing overall cost, while significantly increasing engagement and ROI.
With over 29 years of experience in the data compiling and cleansing in database marketing industry, we have seen client databases with upwards of 28% waste – that’s a lot of wasted ad dollars, a lot of missed opportunity, and could have a significant impact on ROI performance.
Find out more about our in-depth data cleansing processes and custom marketing solutions by contacting us today.