The most important question of any marketing database strategy is “What information is out there that I can access?”
The second is “And what will it cost me?”
The drive behind many demand generation campaigns is to collect valuable data on prospects, stuff like name, email, phone number, company and maybe title. Appended third-party data can provide deeper insight into the company with info like revenue, industry, number of employees, and more. With this data in hand, you can perform personalization and simple segmentation. But what is that worth to your business?
Using cost of marketing campaigns or programs, you can derive the cost per lead and benchmark how one campaign performed stacked against another. Going a step further you can even see how many deals closed using this campaign. But that’s where it stops.
So how do you optimize your marketing database in a way that will improve future campaigns?
By running results of campaigns with segmentation, you can uncover small segments that work best for particular products.
For example, Direct Mail campaign A results in response of 5%, beating Direct Mail Campaign B that resulted in 3% response rate. But when you break down the campaigns by title, you find that Direct Mail Campaign A had a 15% response rate for C-Level Titles while Campaign B had a response rate of 20% to the Manager level. This information saves the marketer money by having to mail only to C-level titles in Campaign A and only to manager level with Campaign B.
Once your segmentation, content and communication plan is in place, the next step is to understand what information you’re missing. This is the data you are not currently collecting that could impact your business.
The only way to identify the gaps in your marketing database is to do a simple A/B testing. If the addition of a new field provides a measurable lift in results, then you may want to collect it. Alternatively if the data has zero impact on results maybe it is time to stop asking for it.
Sometimes we purchase third-party data with the assumption that more equals better. But you need to ask, What does this data cost and does it deliver?
Finding the optimal number of fields for your marketing database requires testing, and then the delicate act of balancing. Bottom line: Don’t overpay for data you don’t need and segment your campaign results!
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