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October 27, 2009

You Don't Need a Calculator...

Scenario: You are a Manager of Marketing for a retail company and you have a 1 million dollar budget for your marketing plan. You decide you want to spend 20% of that 1 million on a direct mail campaign targeted towards previous customers of your company.

That sounds simple. You have a database full of customer information from previous customer purchases; you can even personalize your mailings to what each customer has purchased in the past. After designing the direct mail piece you send the artwork along with your customer database information to the print company. They print the direct mail pieces, and send it off to your targeted customers. Now you get to sit back, relax, and enjoy the return on your investment.
But wait… You knew there was a catch. What if a portion of the customers in your database no longer live in the same house, city, or even the same state? You just spent time and money trying to market to those people, and now they won’t receive the message. It’s only a matter of time before the “Return to Sender” direct mail pieces that you sent out are piled outside your door.
In an article from DMNews Online, Matthew Conlin, Sales Director at Clash-Media US, writes: “Qualification of leads can be done at a number of different levels, depending on what the marketer requires. Verification of telephone numbers, postal address or e-mail address is basic, but has a huge impact on the campaign's effectiveness - the costs incurred by following up bogus contacts can be severe. However, there are higher levels of verification - for example telephone verification of not only personal details, but also interest in the product or service. This creates a very hot lead that can be passed directly to a sales agent. This typically results in positive ROI.”
Did you know, according to the USPS, only 53% of movers give notice to the NCOA (National Change of Address) that they will be changing addresses? That means 47% of your customers who moved since you last optimized your database will not receive the message. And you shouldn’t depend on only the USPS change of address services to update your database of customers and prospects.
Over time customer and prospect data can drastically change. Aside from moving their residence, a customer could get married or divorced which might result in the change of last names. This can make locating your customer base increasingly difficult without the proper database maintenance. 
The customer database your company has been collecting has grown outdated and needs to be optimized. You don’t need a calculator to do the math. It is important that you improve the accuracy and effectiveness of your direct mail in order to increase your response rate.
Trigger data is one mechanism for improving marketing performance but before any data mining marketing activity occurs, you need to ensure your database is kept up-to-date. It sounds like a given but as a consumer, think how often you receive phone calls or mail that are intended for someone other than you, someone who doesn’t even live in your household. 
Data hygiene and optimization are critical to the success of your campaigns. Speedeon Data offers one of the most advanced hygiene capabilities in the industry. Speedeon Data offers a seamless process for keeping your house files up-to-date. With our ability to immediately identify pre-mover and mover activity, we can append your house files within a 24 hour turnaround so you know who to include in your acquisition activities and which customers to target with retention efforts. 
Don’t fall victim to an unkempt database. Invest wisely and choose a solution that is right for your company.


Posted by GI Zaratsian on October 27, 2009 at 9:59 AM in Database Marketing / CRM | Permalink | Comments (0)



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