There is no shortage of available data for marketers. The amount of data being collected has increased, leading to an increase in unusable data, or data waste; just because it’s available and collected doesn’t make it actionable or accurate. Inaccuracies within databases have been shown to have negative effects on marketing KPIs, including engagement, ROI, and impressions.
Over the years, we have learned that building your database begins with deciphering which data points are valid and which aren’t. When you know what to look for, you’re doing yourself more favors than any sophisticate algorithm build on top of the data possibly could.
We previously discussed an example of these inaccuracies in creating customer profiles through cookies in our article Put The Cookie Down.
As a full-service direct marketing agency, our goal is to develop programs that help businesses build successful ROIs. Many of our clients have approached us and asked how to utilize their databases to create more effective marketing campaigns. Well, it starts with reducing the waste in their data, so marketing dollars are spent actually allow them to reach the intended audience. In each stage, it’s important to look for opportunities to reduce waste and optimize the data being pulled. This process includes collection, analysis, and implementation.
The type of data being collected, and its intent, will help determine how reliable it is. In the instance of cookie data, it shows which sites a user has visited but is not as reliable as first party data to make conclusions about an individual’s purchase behavior. For example, opt-in data complete with an email confirmation helps to build an accurate profile, because it comes directly from the user. The user’s motivation to provide that data is important to help filter and determine how it can be used to impact the bottom line.
However, the data you’re collecting doesn’t always have to serve a marketing purpose. It can be used for customer relations, product development, business development, or any other facet of a brand. Just be sure to keep in mind that whatever data is being collected must have an actionable purpose.Establish a regular frequency for collection and cleansing. Collecting and cleansing data upon input, or even a regular cleansing schedule, will ensure that your company is taking action to gather the most up-to-date and accurate data. Companies often overlook this step during the evaluation of their databases, causing issues with cleanliness and accuracy. For example, data can be sorted to find non-deliverable email addresses (accuracy), or consumers who have not interacted with your company within the last year (frequency). Spending money to reach out to these consumers often leads to wasted dollars and lower response rates, both of which can negatively impact ROI.
With the introduction of AI and machine learning algorithms, it is easier than ever to glean specific insights from your databases. It’s important for brands to make a concerted effort to use those insights to build customer models, implement loyalty programs, and design other initiatives to keep consumers engaged.
Once your business has fully analyzed the data, you can then customize and design a multi-channel marketing campaign that’s hypertargeted to your ideal customer. When you put customer data at the forefront of your strategy, you’ll reduce overall cost, while significantly increasing engagement and ROI.