2 | DMNEWS | Data Management Survey | www.dmnews.com
DMNEWS | www.dmnews.com
Mining for (data) gold Marketers no longer see data collection, quality, accuracy and storage as background functions, due to the need to squeeze value from every campaign. However, there are plenty of obstacles to overcome, as we found in the first DMNews/ CognitiveDATA Data Management Survey
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By Pamela Oldham or years, many C-suite executives, including some marketers, have grudgingly looked upon database management as a necessary but boring and decidedly un-sexy function; an activity viewed with about as much excitement as cleaning and organizing the family garage. But in this extraordinary era of bailouts and budget cuts — and given the need to squeeze value from every company asset — more companies are looking to database management as an in-house financial stimulus tool. As the 2009 DMNews/CognitiveDATA Data Management Survey points out, marketers across the country are focusing more closely on data collection, quality, accuracy and storage, especially when such efforts can bring direct mail costs down and offer better targeting opportunities across channels. One top marketer says companies have finally begun to realize customer data is like “liquid gold.” Could it be that in this time of economic challenge, respect for and value of data management will, rise to all-time highs? Before they can begin to mine these potential riches, however, companies will need to overcome some obstacles — including some old-fashioned thinking uncovered in this year’s study. Conducted in early April 2009, a total of 253 respondents took part in the survey, including top company and marketing executives, directors and managers from across the US. A full spectrum of industries was represented, from financial services, technology, retail and catalog to business services, healthcare and pharmaceutical, as well
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as industrial and manufacturing sectors. All maintained either an in-house client database, a prospect marketing database or both. Annual revenue for the surveyed companies was fairly evenly split: 48% reported annual revenue of $100 million and less; 52% said their companies generated more than $100 million annually. About 55% reported their in-house database held fewer than 1 million names, while 45% said they maintained databases in excess of that figure. For the analysts and marketers who were interviewed for this article, perhaps the most surprising issue uncovered by the research centered around data quality. Rod Ford, CEO of Little Rock, AR-based CognitiveDATA — whose firm’s clients include AT&T, DirectTV, Geico, and Crate & Barrel — says the market has been based on commodity processes in place for 20 years. “There’s been no innovative, strong investment in data accuracy and quality as a service for some time.” Ford says. “When you look at the benefits of data accuracy, number one is to ensure you’re reaching the target. All the modeling in this country is done on an individual, statistical regression model; to find the individual who will respond. Yet many marketers, including those in this survey, say delivering to the address is more important.” Ford says companies and marketers need to place a higher premium on clean data. “Advanced technology around data quality certainly produces higher lift without impacting cost,” he explains. “If you could replace undeliverables with 4% more
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