How Useful is Data
Data & data solutions are the key to the billion pound industry that is direct marketing & data is the power behind all successful one-to-one marketing communications.
It has been predicted that this industry sector will grow by some 50% in the next three years, as well as this growth there are major changes in the ‘data landscape’, particularly with the demise of the electoral roll as a source of information for marketers & the introduction of new legislation (Data Protection Act 1998, implemented in 2000). This in turn has meant that the use of customer data, which should already be a key issue for the success of a business, is becoming more complex & is increasingly seen as a major issue for both legislators & consumers.
Now in 2010, all data needs to be used intelligently & is the driving force behind all successful direct marketing communications.
Data is key to the success of marketing energy in any organisation. Data reveals truths about a market sector even an individual. It guides marketers through complex decision-making processes about their own brands & their customers.
Customers are individuals & increasingly expect & demand to be treated as such, they no longer like to be shepherded in defined pigeonholes, and they want to be treated as people not just records on a database.
In order to achieve this level of individual communication, which is possible & within the grasp of any organisation prepared to critically review their own database, adopt data strategies that conform to any new legislation & consider the new area of permission based data landscape. Marketers who choose not to take action will suffer the losing the ability to communicate effectively with their present customers & future consumers.
The lesson which needs to be learnt by all doubters, who do not perceive data as being valuable is that we must UNDERSTAND the true value of our customers & build from this that the value of the data related to those customers will help drive profitability.
Every business irrespective of its size or industry sector will benefit from intelligent, creative data solutions, but only the companies that embrace the idea of the usefulness of data as a key part of marketing communications can expect to thrive in an ever competitive marketplace.
In the main, senior managers do not give much thought about data, and usually delegate responsibility for their organisation’s most important asset. Marketers should utilise the power of information & be able to turn data into genuine customer intelligence that can deliver real competitive advantages.
To be successful in direct marketing, there needs to be a good customer database. The marketing database is an organised set of data, which has data on individual customers or prospects, including the geographic, demographic profiling of the consumer & buyer behaviour data.
The data can be utilised to locate good potential customers, tailor products & services to specific needs of targeted consumers, and maintain long-term customer relationships.
It is vital for all organisations to realise that by building & using customer databases, it is possible to target specific marketing communications to individual consumers on the company’s database.
Building a marketing database takes some considerable time & can be costly, but can pay handsome dividends if it is set up right in the first place.
Companies however, must distinguish between transactional based & custom-built marketing databases. Transactional databases, are implemented by an accounts department for sending out invoices to be paid for customers etc. The custom built databases focus on what the companies marketing people need to know to serve & satisfy customers better than the competition can – e.g., the most cost effective way to reach target customers, the net worth of a transaction, customers’ requirements & lifetime values, lapsed customers & why they departed, why competitors are making inroads into your market share & where the market share is changing.
When an organisation considers building a database, some careful planning is required, because your database is only as good as the information you hold on it. The more information the better the database, but the information must be relevant to what you want the information is to be used for.
If for example you are dealing with business-to-business databases, there is some specific information you might want to hold on the database, including:
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Purchase history – frequency/product range/data of last sale/value
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Company profile – business type/size/credit rating
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Marketing data – source of name/promotion history
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Influencers/specifies & purchasers in their organisation
If you know what interest a customer might have in other products or services you offer, it enables you to cross sell. This is desirable, but few companies do this, simply because of the lack of information.
If your business relies upon personal selling, a rich database enables you to manage your sales force leads in a sophisticated manner, which in turn helps you monitor & control your sales activities efficiently. If you are constantly acquiring knowledge about people as individuals, you can manage your database to identify your key prospects.
A measure of how quickly direct marketing has changed in recent years, is that the word direct marketers probably use more than any other is ‘data’ & now it is your companies ‘greatest asset’.
direct marketing systems limited – copyright 2010
July 2010
Press Release from the DMSYS Group
CONSUMERS ARE LIVING THE WEB LIFE STYLE – THE INTERNET IS RAPIDLY BECOMING A NECESSITY IN PEOPLE’S LIVES
“LOCAL COMPANIES NEED TO MOVE TOWARDS INTERNET SELLING” SAYS PETER MILL, MANAGING DIRECTOR OF THE INTERNET MARKETING COMPANY - DMSYS GROUP
The first AOL Europe/Roper Starch Cyberstudy found the European Internet is growing explosively, mirroring consumer adoption patterns in the United States. The study was conducted among online consumers in Germany, Britain and France, and it reported that more than one-third of users had come online in the last year and 20 percent in the last six months alone, pointing the way towards continued strong growth in Europe.
The study also found that a majority of online consumers in these key markets have made purchases online and that over half of these online Europeans said the Internet has become just about a necessity in their lives. More than half (54 percent) of European Internet users report making a purchase online and 43 percent said they do so regularly or occasionally. More than two-thirds (68 percent) of Europeans use the Internet to get information about products to buy. U.K. consumers were even more likely to purchase online than U.S. consumers.
Given these astonishing statistics, Peter Mill, Managing Director of DMSYS Group in Havant has come up with a creative strategy to ensure that south coast businesses are up the scratch with the rapid growth of cyberspace trading.
Peter Mill commented that many websites are no more than “brochure ware” – and they fail to take full advantage of the potential of e-commerce and simply miss the massive commercial opportunities that the Internet offers. Often websites are slow and difficult to navigate and consumers have a poor experience which reflects badly not only on the website itself but on your company.
DID YOU KNOW?
Did you know that most people won’t wait more than 17 seconds for a website to open and less than 10 seconds to decide whether your company can provide the solutions they need? Can you afford to lose money by not using your website to its full potential?
To help local companies capitalise on this Internet growth DMSYS Group are holding an open 'INTERNET MARKETING DAY' for companies across the South coast who wish to find out how they can make money from their website in 2006.
A networking buffet lunch will allow the ideal opportunity to meet like minded businesses and share best Internet practice and discover how to market your business on the Internet. The open day will be held on Wednesday March 15 at their offices in Havant. There is a lunch time meeting from 12.30pm to 2.30pm and another at 6.00pm to 8.00pm at the DMSYS Group’s offices at 4 Oakwood Business Centre, Downley Road, Havant, PO9 2NP
For more information contact Peter Mill on 023 92476007 or log onto the DMSYS Group website www.dmsysgroup.com



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