Issue 22

DATA BUYERS GUIDE

Purpose of your Campaign
A marketing campaign can have one specific objective, or several, depending on what you're trying to achieve. Differing objectives will require different marketing mediums, types of data and levels of spend to achieve your end goal.

When choosing your marketing medium and acquiring your database, the purpose of a campaign and the results expected should be clear in your mind to ensure that the data you obtain can be used meet all your requirements.

Marketing campaigns can be used to achieve the following:

1. Creation of sales leads or appointments
2. Generation of sales (i.e. directly through website links, postal or fax back promotions etc.)
3. Market research
4. Customer research or general PR (i.e. customer satisfaction surveys, newsletters etc.)
5. Attendance of exhibitions or seminars
6. Increase in website traffic

Setting Budgets
Depending on the marketing medium you use and the complexity of your data selections, prices for marketing campaigns can vary greatly. Establishing the costs of all the components of your marketing campaign & setting the overall budget helps to understand the level of spend you can allocate to the purchase of a database.

Here are 3 key points to remember when establishing costs and setting a budget…

What marketing medium do you wish to use?
The medium that you intend to use for your marketing is incredibly important, with regards to cost in terms of the data demographics you need to purchase, additional costs and response rates generated. Mediums that are available to use include direct mail, telemarketing, and both fax and email broadcasting.

When purchasing a database for a chosen medium you need to check what base information is provided. Additional information such as telephone numbers, fax numbers or email addresses may not be included within this cost.

Additional costs vary from e.g. telemarketing, which per operator can cost internally on average 18K per annum and externally from £150 per day plus set up fees, to direct mail which includes design, print, fulfilment and postage costs. Fax and email broadcasting incur broadcast costs and design fees.

Response rates also differ from 5 -15% for business-to-business telemarketing to 0.1% - 0.5% for Fax Broadcasting, and from 0.5% - 3.0% for Direct Mail to 0.5 - 5.0% for Email Broadcasting. Expected responses for a campaign need to be calculated to estimate and accommodate the cost of marketing materials such as brochures sent or meetings arranged. You should be aware that response rates can fluctuate due to a variety of reasons including campaign design and market conditions.

Who do you wish to target?
Costs of data fluctuate due to the type of selections used, information provided & size of database. Generic company databases have cheaper base rates compared to databases with in-depth information such as IT Infrastructure and financial information. The base rates of a database and any additional database costs e.g. selection fees or minimum order value should be researched as it can affect your overall budget.

How often do you wish to target this database?
Databases are sold on different licences (see section on Licencing & Pricing). The cost of your database will depend on the frequency that you wish to utilise it. If you plan to use the database more that once, you need to enquire into what licences the database you are interested in can be purchased on.

Data Selection Criteria
Depending on the complexity of the data you are sourcing for your marketing campaign, there will be a variety of data selection criteria you can choose from. This is one of the most important aspects of your campaign, as the data you select will determine the success of your campaign.

Here are 5 key points to remember when selecting your data…

Have you researched your existing customers?
Your existing customers will give you a good insight into the types of companies that you have found success selling to. Look at key criteria such as geographic location, company size, industry sectors and the job functions of the individuals who place the orders with you. A good data provider will provide a basic analysis of your customer base free of charge.

What level of information is required?
The medium you are intending to use for your campaign will determine the level of information you require from your selections. If requiring data for an email campaign for instance, you need to ask that all selections be populated with an email address. Similarly if you're planning to contact organisations by telephone, you'll need the telephone number.

What selection criteria are available?
Following your market and customer research, you should have a good idea of the kind of organisation attributes you're looking for. There are four key areas to first consider when selecting data:

• Industry
  
• Geographic Location
  
• Size
  
• Decision Maker

You can continue to build your selections upon these basic criteria, narrowing down your count until you're happy that you've attained the right audience. It is important to be aware that selection criteria are limited and may not suit your exact requirements.

Are selections chargeable?
Some data providers charge for data selections and similarly for output of data. You need to enquire about charges before adding numerous criteria to your selections, as this could affect your budget and the number of records that you can afford to buy.

Do you already have a database?
If you already have a customer or prospect base, you may wish to de-duplicate it prior to buying new data. A good data provider will supply this service free of charge. Make sure that you have a Data Confidentiality Agreement or Non Disclosure Agreement in place prior to sending your own data to a third party.

Quality & Standards of Data
Whatever your target market or the type of campaign you would like to run, the quality of the data used is of paramount importance in ensuring the success of your marketing project.

Brochures sent and calls made to incorrect contacts, businesses that have closed and personnel that are no longer with that company simply reduce response rates and result in more budget used for less return.

The quality of a database is generally reflected by the price paid due to the cost of regular and in-depth updating methods. There are 5 key questions you need to ask a data provider to ensure the information your receive is as up to date and accurate as you require.

How the data is collected?
Data can be collated through a variety of methods, from tele-research to magazine subscribers. Validated data e.g. tele-researched is of a higher quality than lists collated via other methods i.e. exhibition attendees or web harvesting.

How the information is kept up to date?
Like data collection methods, updating methods vary from regular mailings to tele-research, and from gone-away updates to information given by clients. E.g. many companies with lists of subscribers to published media, will send their customers information on a monthly basis and use responses to this to update their information rather than confirming details by telephone. Lists of exhibition, conference and seminar attendees will very rarely be updated, at all after the event.

How large is the database?
Database size can affect quality, as large databases tend to have longer research cycles due to the sheer volumes of data.

What quality guarantees are in place for incorrect records or gone aways?
A reputable data supplier will have quality guarantees in place, and should also be able to give you an indication of the percentage of errors expected on the database.

What is the average age of the data?
Most data companies state that their information is updated on a daily basis. Although this statement is correct it can be misleading with the actual age of marketing data varying considerably from 6 months to an incredible 3 years. By asking the average age of the database and, taking into consideration the types of businesses and contacts you will be targeting, you will be able to be sure that the oldest record supplied will still be relevant to you.

Licencing & Pricing
All databases are purchased through a licence agreement. These agreements and the information provided differ between individual data providers, as does the cost. To ensure you do not exceed your budget parameters and receive the correct information you require for your marketing campaign(s), you need to ask your data provider the following questions.

Is There A Minimum Order Size/Value?
Some data providers charge a minimum order value or size, this may affect your overall spend and so should be checked in advance.

What Licence Is The Data Available To Purchase On?
There are five main licences data is sold on. Single Use (Mailing), Single Campaign Use (Mailing + Telemarketing), 6-month Unlimited Use, 12-Month Unlimited Use & Eternal Use licences. Not all information is available to purchase on all five types and licences offered for each individual database should be checked.

What Data Is Provided Under The Licence Agreement?
There are no standard amounts of information provided under each licence type. Some data providers only supply company address details under all licence types and additional information e.g. telephone number are charged as extra. Depending on the marketing method you have chosen you need to check whether the information provided is included for free under the licence agreement you have chosen.

Customer Service Standards
Customer service is paramount - you need to be sure that you will receive a high level of consultancy and support from your chosen data provider.

Here are 5 key questions to ask your data provider…

Who will be my Account Handler/Manager?
A professional data provider will allocate one point of contact that is responsible for handling your account. This is so they can get to know you and your company, understand your product portfolio and how you promote your organisation and can provide a consistency of service.

Do you provide data consultancy services?
A good data provider will provide general consultancy about data selection criteria and suitable prospect targeting, as well as discuss the level of information you require for your campaign and the medium you are intending to use.

Are consultancy services free?
Most data providers will provide free consultancy services, but you should never assume! Always check that any consultancy or advice you are receiving is free of charge.

When can I expect the results of my count request?
At the very least, you should expect your count results back the same day. Most data houses provide counts within a few hours, and in exceptional circumstances, within the hour. A reasonable expectation is usually a few hours.

When can I expect delivery of my data?
You can reasonably expect to receive your data within 24 hours from your signed and returned order. There are a few exceptions to this rule, especially if your data requirements are complex. However, a good data provider will aim to provide your data to you the same day as your order.

Legislation & The Law
Here are 5 main areas of Legislation that you should be aware of when conducting Direct Marketing Campaigns.

Data Protection Act (DPA):
There are 10 main principles associated with the DPA.

1. Most companies, except non-profit, must register with the Office of Information Commissioner. This process is called notification and costs £35. For more information on whether your company need register, visit www.dataprotection.gov.uk
   
2. The DPA covers all forms of data: manual (paper) records, computerised records, recorded and video data.
   
3. When companies collect data from customers, they have to tell people what the information is required for.
   
4. Data must be held only for specific and lawful purpose and not be processed in any matter incompatible with those purposes.
   
5. The level of data held must not be excessive for those purposes.
   
6. Anyone can ask for a copy of the information that you hold on them.
   
7. All data subjects have the right to object to direct marketing.
   
8. ALL marketing information should have an opt-out clause.
   
9. E-mail addresses are regarded as personal data.
   
10. All data must be securely stored.

Directive on Privacy and Electronic Communication (DPEC):
The DPEC (formally known as the Communications Data Protection Directive) will be implemented on 31 October 2003. It states that an opt-in approach must be used when marketing by email to natural persons (private individuals and sole traders anywhere in the UK, and Partnerships in England, Wales and Northern Ireland), with an exception where there is an existing customer/business relationship between parties. An opt-out approach will exist for corporate subscribers (@company.co.uk). The sender is responsible for complying with this legislation.

E-Commerce Directive:
The Regulations contain provisions on commercial e-commerce communications and include a requirement that all UCE (unsolicited commercial email) should be easily identifiable as soon as it is received (thereby enabling automatic deletion/filtering). It also states that all websites should have full postal and telephone contact details.

The Telecommunications (Data Protection and Privacy) (Direct Marketing) Regulations 1998
The act relates to both Telephone and Fax Marketing. It requires that companies using fax broadcasting as a marketing medium must comply with strict regulations. The four main points of legislation are:

1. Sole Traders and Partners: 'Proper Persons' must not be faxed without attaining their permission first.
   
2. All fax marketeers must run their fax numbers against the F.P.S. (Fax Preference Service) - a database of companies who have registered their wish not to receive any fax marketing.
   
3. All fax broadcasters must maintain their own suppression database, consisting of companies who have requested exclusion from their marketing database
   
4. The fax document must either contain a company address or a free form of response. This is in order to prevent abuse of the '£ per minute' unsubscribe fax numbers.

The act also enables Individuals (consumers, sole traders, and (except in Scotland) partnerships) to register their objection to receiving direct marketing calls with a central service via the Telephone Preference Service (TPS). Companies wishing to market by telephone must run their database against this.

Mail Preference Service (MPS)
The Mailing Preference Service (MPS) is a non-profit organisation, which is funded by the direct mail industry to enable consumers to have their names and home addresses in the UK removed from or added to lists used by the industry.

Use of the Consumer File by list-owners and users is a requirement of the British Codes of Advertising & Sales Promotion administered by the Advertising Standards Authority, as well as a condition of the Direct Marketing Association's Code of Practice.

Glossary
'Count' the number of companies and contacts, meeting your selection criteria the list supplier can provide you

'N.D.A' an agreement between companies not to divulge to outside sources any shared information

'De-Dupe or De-Duplication' the method of removing any records from a database you would like to purchase that already appear on your client or prospect database

'Marketing Medium' the way in which you would like to send your marketing message to potential customers

'Gone-Aways' companies that have ceased trading, moved address, or contacts that no longer work for that company

'ROI' 'Return on Investment' - the revenue you can expect to generate, taking into account the cost of your campaign

'Decision Maker' the person within a company with responsibility for a particular department, service or activity

'Data Demographics' the specific information that can be supplied relating to a company, such as number of employees, financial information, technical infrastructure etc

About The Author
Caroline Redfern, Marketing Manager, Corpdata Ltd.
Corpdata owns and tele-researches daily, an in-depth business-to-business marketing database.
Consisting of over 250,000 major companies, with ½ million key contacts identified, analysis of I.T. & Telecomms hardware and software applications is also available for key sites.

With a strong client base including Dell, Microsoft, VNU Business Publications and Dennis Publishing and a respected market position Corpdata is one of the largest and best data providers in the UK.

For further details contact caroline.redfern@corpdata.co.uk or visit www.corpdata.co.uk