The database of potential customers, the starting point for commercial actions
Posted: Sun Dec 15, 2024 6:00 am
Three mistakes to avoid when purchasing an external database
“We need 10,000 addresses of medium-sized companies in Madrid. We want to do a mailing that will go out this week. Please send us an economic proposal today, and one that is not too expensive, as the budget is limited.”
It could be any of the calls or requests for information that we receive on a daily basis. Unfortunately, these types of messages are very common. Don't get me wrong now, at the company where I work we are absolutely delighted every time someone contacts us about a database issue (we make a living from it...). However, vital aspects of campaign preparation are often overlooked. I will tell you about them below.
The three sentences that make up the example of this summary case represent, in turn, three of the most serious mistakes that one can make when purchasing a database for a direct marketing campaign.
1. Segmentation
In this case, it is defined as “medium-sized companies in Madrid”. It is a very generic approach, but it could be correct. The mistake, from my point of view, is to make a direct request without giving the bulk sms south africa database provider a chance to reflect on your case and present the most appropriate proposal for this specific case. An external database, in this case of companies, contains millions of records and tens of millions of segmentation data. The provider has created the database, works with multiple sources and procedures every day of the year to keep the information up to date. If you provide a reasonable briefing about our company, the products to be promoted and our objectives, surely this same provider will be able not only to get its segmentation approaches right but also to present alternative solutions.
2. Timing
It is clear that asking for a proposal of this type for the same day is not enough time. Worse is making the issue of the potential customer database the last detail of the campaign. It is like sitting down and writing a letter without having decided who the recipient will be. A marketing campaign must always start with an analysis of the current customer portfolio and a segmentation of the potential market . In this way, and only in this way, will we know with whom and how many we are going to communicate. The analysis of current customers (your database) and the potential market (the external database) must be the first obligatory step, not the last detail to tie up.
3. Underestimating the importance of the potential database
I am not saying that external database addresses have to be expensive, but they certainly cannot be regulated nor should they be considered a worthless commodity. Many of us have attended seminars, read books and articles where we have been told about the importance of choosing the right database of potential customers. Very often, when analysing the results of database marketing campaigns, the database of potential customers is attributed with 50% of the success or failure factor. In my experience, this is absolutely true, whatever the channel. For example, an excellently executed campaign that fails in segmentation or in the choice of the database can have a disastrous result. A regular campaign, without surprises, but with successful segmentation and the most appropriate choice of the database of potential customers, can even be very successful. Price is important, but more important is to correctly identify where to invest the effort and promotional investment.
“We need 10,000 addresses of medium-sized companies in Madrid. We want to do a mailing that will go out this week. Please send us an economic proposal today, and one that is not too expensive, as the budget is limited.”
It could be any of the calls or requests for information that we receive on a daily basis. Unfortunately, these types of messages are very common. Don't get me wrong now, at the company where I work we are absolutely delighted every time someone contacts us about a database issue (we make a living from it...). However, vital aspects of campaign preparation are often overlooked. I will tell you about them below.
The three sentences that make up the example of this summary case represent, in turn, three of the most serious mistakes that one can make when purchasing a database for a direct marketing campaign.
1. Segmentation
In this case, it is defined as “medium-sized companies in Madrid”. It is a very generic approach, but it could be correct. The mistake, from my point of view, is to make a direct request without giving the bulk sms south africa database provider a chance to reflect on your case and present the most appropriate proposal for this specific case. An external database, in this case of companies, contains millions of records and tens of millions of segmentation data. The provider has created the database, works with multiple sources and procedures every day of the year to keep the information up to date. If you provide a reasonable briefing about our company, the products to be promoted and our objectives, surely this same provider will be able not only to get its segmentation approaches right but also to present alternative solutions.
2. Timing
It is clear that asking for a proposal of this type for the same day is not enough time. Worse is making the issue of the potential customer database the last detail of the campaign. It is like sitting down and writing a letter without having decided who the recipient will be. A marketing campaign must always start with an analysis of the current customer portfolio and a segmentation of the potential market . In this way, and only in this way, will we know with whom and how many we are going to communicate. The analysis of current customers (your database) and the potential market (the external database) must be the first obligatory step, not the last detail to tie up.
3. Underestimating the importance of the potential database
I am not saying that external database addresses have to be expensive, but they certainly cannot be regulated nor should they be considered a worthless commodity. Many of us have attended seminars, read books and articles where we have been told about the importance of choosing the right database of potential customers. Very often, when analysing the results of database marketing campaigns, the database of potential customers is attributed with 50% of the success or failure factor. In my experience, this is absolutely true, whatever the channel. For example, an excellently executed campaign that fails in segmentation or in the choice of the database can have a disastrous result. A regular campaign, without surprises, but with successful segmentation and the most appropriate choice of the database of potential customers, can even be very successful. Price is important, but more important is to correctly identify where to invest the effort and promotional investment.