Buyer’s Guide: Best Practices for MarketinG dataBase cleanse · that point, it’s important that...
Transcript of Buyer’s Guide: Best Practices for MarketinG dataBase cleanse · that point, it’s important that...
Buyer’s Guide:Best Practices for
MarketinG dataBase cleanse
2Buyer’s Guide: Best Practices for Marketing Database Cleanse
executive suMMary
In partnership with Ascend2, ZoomInfo conducted a study, entitled “Data-Driven
Marketing Benchmarks For Success,” in which 234 marketing professionals were
surveyed. The results showed that even “very successful” data-driven marketers
identified “Improving data quality” as the top challenge to achieving goals.
This should come as no surprise. Multiple studies have confirmed that regardless of
industry, revenue or company size, poor data quality is an epidemic for marketing
teams. The problem is further exacerbated within enterprise organizations whose
Customer Relationship Management software (CRM) store legacy marketing databases
full of leads, contacts, and accounts.
In order to prevent the natural decay of contact and company data in their marketing
database, our study found that 79% of “very successful” data-driven marketers
partner with B2B Contact Data Vendors. With the aid of a B2B Contact Data Provider’s
database and real-time cleansing tools, marketers are empowered to proactively
protect and enhance customer and prospect data.
In fact, 80% of these organizations cleanse their marketing database at least once
a month. The end result? Over 80% of these organizations rated the quality of their
marketing database as “good” or “somewhat good,” while just 3% rate their database as
“very poor.”
The value proposition should seem clear. But this still is your database – a massive
asset to your organization, even if it is rife with holes and inaccurate information.
Suffice to say, entrusting a vendor to help maintain its accuracy and completeness is
no ordinary engagement.
Cause & Effect: B2B Contact Data Provider
Adoption79% of “Very Successful” Data-Driven Marketers Use B2B Contact Data Providers
Result80% of this segment rated the quality of their marketing database “good” or “somewhat good”
79%62%
18%80%
Use Case62% cleanse their data once a month; 18% cleanse customer data daily.
3Buyer’s Guide: Best Practices for Marketing Database Cleanse
aBout this Buyer’s Guide
In an effort to drive transparency to such a critical
initiative, ZoomInfo has produced the following eBook,
which aims to help marketing leadership understand the
following best practices around cost and value:
1. Buying Considerations: Review of important
terminology, metrics, and pricing models related to
database management projects that your buying
committee should understand BEFORE entering an
agreement with a B2B Contact Data Provider
2. Value: From contact appends and cleanse
functionality to database segmentation, a review
what to look for in a vendor-supplied, comprehensive
database audit report.
4Buyer’s Guide: Best Practices for Marketing Database Cleanse
BuyinG considerations: key terMs, Metrics & PricinG Models
B2B ContaCt Data ManageMent use Cases
Make no mistake, even if your organization desperately needs to clean its database,
you should control the entire process. If properly vetted, success is in your hands. To
that point, it’s important that your buying committee understands the terminology
related to contact data management.
aCtion iteMs relateD to DataBase ManageMent
1. update: B2B Contact Data Provider updates piece of inaccurate
information within contact and account record
2. append: B2B Contact Data Provider fills in empty contact and account
fields with up-to-date information
3. Confirm: B2B Contact Data Provider confirms accuracy of field in
contact and account records
4. Segment: B2B Contact Data Provider organizes contacts and accounts
by common demographic/firmographic critieria
VenDor analysis: essential MetriCs your Buying CoMMittee neeDs to unDerstanD
MatCH rateThe rate at which vendors can match information in their database to customer’s
database. The higher the match rate, the more a vendor can help cleanse, append,
confirm contact and company data.
What’s important to understand is that all “matches” are not created equal. Therefore
it is CRITICAL to establish precisely which fields a vendor matches to and if the
correlation between databases brings in new information that meets your needs.
For instance, let’s pretend your main goal is to cleanse and append all the email
addresses within your marketing database. If a vendor claims to match to a record, but
only has the contact’s company address or another extraneous field, then is it really a
match? No, not at all.
Cost Per MatCH (CPM)Another valuable metric in a data management project, CPM is defined by the
actual cost you are spending per updated record. A vendor’s match rate directly
impacts the cost per match.
5Buyer’s Guide: Best Practices for Marketing Database Cleanse
key Metrics related to contact data ManaGeMent Projects
saMPle Cost analysis
Let’s examine two common pricing models B2B
Contact Data Providers use with data management
projects through a hypothetical engagement.
Pretend two organizations, Company A and
Company B, each have an identical marketing
database of 200,000 contacts. Marketing leadership
in both companies are well aware these contacts have
plenty of missing or inaccurate information, including
email addresses and phone numbers.
CoMPany a - FixeD Cost
Company A engages with a B2B Contact Vendor
that uses a “Fixed Cost” pricing model for database
appends. Here is how the project actually prices out:
- The total cost in this scenario is based on the size of
the database a vendor is appending.
- Let’s assume that with 200,000 records, the vendor
prices out the project at $.10 per contact, which leads
to an up-front total cost of $20,000.
- The vendor then runs a match analysis and brings
back 50,000 updated records.
Note: Remember, with
this pricing model,
we’re still not even
sure what constitutes
a match – which,
depending on your
needs, is a huge drawback.
CoMPany B - Cost Per MatCH
Company B engages with a B2B Contact Vendor that
uses a “Cost Per Match” pricing model for database
appends. Here is how the project actually prices out:
- The cost is based on the number of records a
vendor can actually match to.
- Since size of the database is irrelevant at this point,
the vendor takes 200,000 records, runs the append
project, and returns 80,000 contacts which can be
updated.
- With an exceptional match
rate, the vendor prices
out the project at $.35
per match, which leads
to a total (potential)
cost of $28,000.
Total Cost Per Record:
$0.40Total Cost
Per Record:
$0.35
6Buyer’s Guide: Best Practices for Marketing Database Cleanse
key Metrics related to contact data ManaGeMent Projects
Best PraCtiCe: get Free analysis oF MatCH rate anD Cost Per MatCH Prior to entering agreeMent
Let’s review a few important elements to consider in the engagement examples given
above: First and foremost, remember, the detail of what baseline data is required to
constitute a match rate can be open to interpretation. Fortunately, leading B2B Contact
Data Providers will run a match assessment free of cost at the outset of your project.
The result of the assessment should be an easy-to-understand report that precisely
defines what information within a record is being appended, updated, and confirmed.
We will review this report in more detail in the next section of this Buyer’s Guide.
wHat iF BotH VenDors MatCHeD uP to tHe saMe reCorDs?
Next, as far as this particular example detailed on the previous page is concerned, two
drawbacks occurred with Company A’s engagement. Clearly, the organization missed
out on an opportunity to update 30,000 more records. Secondly, $.05 difference in
cost per updated record may not seem expensive, but at scale the pennies add up.
For instance, let’s assume the vendor serving Company B could only update the same
amount of records (50,000 contacts) as the vendor working with Company A. The
difference in CPM adds up to $2,500 or 13% of the project’s total cost.
Total Cost (for 50K contacts)
Company A
$20K
Company B
$17.5K
$0
$5K
$10K
$15K
$25K
$20K
7Buyer’s Guide: Best Practices for Marketing Database Cleanse
how to MaxiMize value of your contact data ManaGeMent Project
oVerView oF DataBase auDit analysis
After developing a shortlist of B2B Contact Vendors
to engage for your contact data management project,
you should not only consider previously mentioned
pricing metrics, but have a thorough understanding
of the exact information that will be either appended,
updated, or confirmed by the vendor.
Leading vendors will add transparency to the
engagement by providing a comprehensive report
about the current health of your database, as well
as the information they can append, update, and
confirm, as well as other key findings.
Note: This is a critical piece to the engagement
process for any database append project.
Reputable vendors will offer this report to
potential customers prior to entering an
agreement.
Best PraCtiCe: wHat your DataBase auDit sHoulD inCluDe
Engagement Scenario: For further clarity, let’s review a sample version of this report from a fictional vendor.
Figure 1 “Match rates”: The report should help potential customers immediately understand the overall match rate
that this vendor can match to on a “people” (contact) and “company” level. However, as previously discussed, a match
rate is not nearly enough insight to determine whether a vendor can meet your needs. The report should go deeper
and get into specifics.
Vendor Match Rates (Fig. 1)
0% 10% 20% 30% 40% 50% 60% 70% 80% 100%90%
CompanyMatch
Input Company Records: 538,609Vendor Matched Records: 425,499 | Unique Contacts Matched: 158,411
79%
Person Match
Input People Records: 538,609 Vendor Matched Records: 383,431 | Unique Contacts Matched: 370,617
71%
8Buyer’s Guide: Best Practices for Marketing Database Cleanse
COMPARE NEW UPDATE CONFIRMED EXISTING EMPTY GRAND TOTAL
First Name
Last Name
Title
Function
Direct Dial
Industry
2 · 0.00%
1 · 0.00%
4.160 · 0.86%
209,342 · 43.06%
145,743 · 29.98%
358,315 · 61.81%
26,785 · 5.51%
11,172 · 2.30%
244,601 · 50.31%
73,063 · 15.03%
22,473 · 4.62%
295,623 · 60.80%
311,232 · 64.01%
49,452 · 10.17%
138,046 · 28.39%
7,855 · 1.62%
163,791 · 33.69%
163,789 · 33.69%
165,618 · 34.06%
275,093 · 56.58%
44,181 · 9.09%
1 · 0.00%
8 · 0.00%
22,371 · 4.60%
276,860 · 56.94%
265,950 · 54.70%
127,887 · 26.30%
486,202 · 100.00%
486,202 · 100.00%
486,202 · 100.00%
486,202 · 100.00%
486,202 · 100.00%
486,202 · 100.00%
486,202 · 100.00%
how to MaxiMize value of your contact data ManaGeMent Project
Figure 2 “Information Matrix”: Here’s where transparency comes into the picture
in a contact data management project. A vendor could claim to match to a record, but
may only have irrelevant information that doesn’t meet your needs.
Record Gap Analysis (Fig. 2)
NEW: Vendor able to append data to empty Customer record field | UPDATE: Vendor has updated data in Customer record field | CONFIRMED: Customer and Vendor has same data in record fieldEXISTING: Customer has data in record field, Vendor does not | EMPTY: Neither Customer nor Vendor has data in record field
Be wary of vendors that do not explicitly reveal exactly which pieces of information
they can append, update, confirm or cannot provide In the below chart, you can clearly
see the types of information the fictional can provide this hypothetical customer with.
9Buyer’s Guide: Best Practices for Marketing Database Cleanse
Updated
13%22,473
Confirmed
4%7,855
New
83%145,743
how to MaxiMize value of your contact data ManaGeMent Project
Figure 3 “Contact Data overview”: Just like all matches are not created equal,
neither is all types of data. Most organizations in need of a database management
cleanse want to ensure contact information is accurate so that they can execute
Contact Data Overview (Fig. 3)
marketing campaigns and ensure sales has information needed to follow up on
converted leads. Consequently, vendors should dedicate a section of their match
report strictly to contact information.
Email Status Direct Dial Status
0%
10%
20%
30%
40%
50%
60%
70%
80%
100%
90%
Vendor is able to UPDATE: 73,063 emailsCONFIRM: 138,046 emails
Updated
35%73,063
Confirmed
65%138,046
0%
10%
20%
30%
40%
50%
60%
70%
80%
100%
90%
Vendor is able to ADD: 145,743 direct dial phone numbersUPDATE: 22,273 direct dial phone numbersCONFIRM: 7,855 direct dial phone numbers
10Buyer’s Guide: Best Practices for Marketing Database Cleanse
how to MaxiMize value of your contact data ManaGeMent Project
Figure 4 “Persona & industry insights”: Chances are,
your organization understands its Total Addressable
Market (TAM) and buyer personas. However, in this
complimentary report the B2B Contact Provider
should provide insights into the characteristics of your
marketing database.
Moreover, vendors can turn these insights into action
after the initial database cleanse and append is
complete. Examples of database segmentation can be
based on customized firmographic and demographic
criteria. With this level of organizations, your marketing
team is better empowered to develop and execute
personalized campaigns.
Database Segmentation Examples (Fig. 4)
Management Level
Non-Manager
Manager
Director
VP-Level
C-Level
0% 10% 20% 30%
Human-Resource
Engineering & Technical
Operations
VP-Level
Sales
Marketing
Medical & Health
Legal
Top Level Job Function
0% 20% 40% 50%30%10%
Headcount Range
<100%
20%
15%
10%
5%
10-20 20-50 50-100 100-250 250-500 1K-5K500-1K 5K-10K 10K+
11Buyer’s Guide: Best Practices for Marketing Database Cleanse
conclusion: you can control success throuGh a transParent Process
Every component explained in this Enterprise Buyer’s Guide should be provided to you free of charge by a B2B Contact Data Provider. Again, all information is not created equal.
Thus, it’s critical that you not only understand the sheer volume of records each vendor can append, update, confirm, or segment, but also the exact types of information within
those records they can clean.
If your organization needs its database cleansed, look no further than ZoomInfo. With a database of 140 million professionals and nearly 13 million companies ZoomInfo has
helped companies maintain and enhance their databases for over a decade.
“It’s not enough to grow your database. You have to keep your data clean – and do both in a way that’s cost effective for the
company. ZoomInfo has made those challenges a lot less daunting.”
Anna Glushkovsky, Data Marketing Manager, Eloqua
“Bad data was handcuffing the sales, marketing, channel, client development, field services, customer experience, and
sales operations teams, ultimately making a big impact on our productivity, people, and revenue. ZoomInfo’s accurate data allowed the sales team to spend more time selling and less time researching.”
Sean Goldie, Senior Segment Marketing Manager, Concur
Accelerate your growth with ZoomInfo. Visit www.zoominfo.com or call 866-904-9666 to find out how.