Rupert Tomalin (pictured below) says quality data are the diamonds of DM and should be treated with extra care.

Around the world, more and more consumers are becoming concerned about data quality and security. The feeling of mass paranoia over how personal information is being handled by government and private sector organisations turns out to be well founded, alas, as in the UK alone, nefarious activities like facility fraud (‘taking over’ someone’s bank account to receive fraudulent payments), and identity theft are up a staggering 38 per cent and 36 per cent respectively so far this year (Source: CIFAS).

At the more noir-ish end of the spectrum, the causes of these types of fraud often lie in online security breaches or the illegal intercept of postal items containing name, address and date of birth information. But, given that something as simple and innocuous as a keying error can impair the usability of a customer file – resulting in name and address errors, reduced response rates and/or customer complaints – marketers of all ilks should be especially vigilant at present as to where and how their customer data is being used. Because to do otherwise can lead to levels of brand damage and fines from regulators which can be nothing short of catastrophic.

Top of any data management ‘To Do’ list should be the removal of gone-aways and deceased records from your database. Yes, there will be an up-front cost with this type of suppression activity, but which would you prefer: Spending a few pence/cents/yen to flag files which are almost 100 per cent guaranteed to be unresponsive (your client has either moved or, worst still, died, after all), or incur the far greater costs associated with needless mail collateral production, fulfilment and postage?

Data quality is the first step towards ensuring you can achieve ye olde sales adage of ‘right offer, right customer, right time’. To borrow some Monopoly parlance, without this you cannot pass ‘Go’ and will not collect £200.

File segmentation is also imperative. Woe betide any marketer who repeatedly contacts the same person with the same offer (regardless of channel), or, worse still, dispatches different offers to the same person simultaneously. Sounds dumb, right? Unfortunately this happens all too often.

So, if your data comes from a variety of different sources, ensure all names and addresses are standardised and regularly de-duped using a segmentation hierarchy that will foreground your largest and/or transactionally active customers. These are your direct marketing ‘diamonds’, and should be treated with extra care. The more insight you can gain into purchase trends within your sector, the greater will be the opportunities to increase both client retention and market share.

With your customer data accurate, segmented and, let’s not forget, secure (losing a disc containing thousands of customer names and addresses in the post or leaving your laptop on the train won’t endear you to anyone anytime soon), you can then work on your contact strategy.

Ask yourself: ‘Do I need to augment (either through relocation, buying-in lists or prospect data from third parties, as examples)?’
‘How can my offer or service be best communicated?’
‘Which is the most popular and cost-effective combination of channels/brand contact points for my target market?’

Digital, online, postal, social media, mobile, experiential – the plethora of interaction options available to marketers and consumers alike seems to be increasing almost daily. Yet, regardless of your campaign’s final channel configuration, it’s data that’s powering your response-driving campaign engine at every turn.

Accuracy, security and knowledge – with 2010 fast approaching (scary thought!), I’m suggesting this as a data management mantra for the new year. Not only will your campaigns be better targeted and more responsive, but the transactional insight you’ll gain will greatly assist you with anticipating client needs and bolstering your brand’s loyalty rates and environmental credentials.

On behalf of everyone here at meta-morphix, I’d like to wish all DMI readers a happy Christmas and a data-safe and responsive new year.

Rupert Tomalin is operations director, meta-morphix Ltd: www.meta-morphix.com