Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership...

12
Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer data March 2015

Transcript of Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership...

Page 1: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

Life, death and the gap inbetween

in partnership with Royal Mail Data Services

Research report into the use and management of customer data

March 2015

Page 2: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

Has the ease, convenience and low cost of prospecting in digital channels made companies overlook

the potential that exists within their customer databases? It is a question that arises from the fi nding that 62 per cent of businesses say their biggest challenge is fi nding new customers. This is nearly twice the level who say it is retaining customers that most concerns them.

A clear implication is that the economic model of building a business has been fl ipped around by the explosion of digital channels and opportunities. At the start of this century, the most compelling argument for how to achieve growth cost-effectively was that it cost between fi ve and eight times as much to fi nd a new customer as it did to retain an existing one. Out of that insight grew CRM strategies and the whole focus on customer experience and satisfaction.

So has this cost base for fi nding new customers been changed so dramatically that retention is now more expensive? Clearly, the rise of Google and the power of search have made brands easier to fi nd online than ever, while always-on, fi ckle, mobile consumers (and business executives) are constantly interrogating the market, looking for interesting content, new products and deals.

Email marketing is now the preferred communication channel and has led companies towards an almost constant transmission of their information. Why analyse customer data and target carefully when you can do a live split test and see the results in seconds? Even the complexity of managing a marketing mix that covers search, digital display, social, mobile and the rest can seem less challenging than

dealing with customer data - current, lapsed and dormant - with its attendant problems of recency, permissions and accuracy.

And that is the concern at the very heart of this report. Reaching potential customers may well now be easier and cheaper – converting them to active, loyal, repeat purchasers is another matter entirely with around one in fi ve respondents saying they fi nd it hardest to get registered website visitors to buy.

Despite the costs associated with the maintenance of customer data and its permissions, customer retention ought to have a higher priority. After all, a customer who is kept loyal is a prospect that does not have to be identifi ed, enticed and converted. But fail to understand what is happening in your customers’ lives or miss an important life event which changes their circumstances and their purchasing behaviours along with it and your retention strategy has taken a major step backwards.

All brands are in effect the delivery of a promise made to the customer about the product quality, service, trustworthiness and reliability of the company. And this promise is delivered through every interaction that the customer has with a company.

Customer data may seem a relatively distant issue within digital marketing and brand management. But at the heart of the fi ndings in this report is a simple truth - you only get one chance with a customer, so do everything possible to get it right.

Jim ConningManaging DirectorRoyal Mail Data Services

2 DataIQ | @TheDataIQ | www.dataiq.co.uk |

Life, death and the gap inbetween

Page 3: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

| www.dataiq.co.uk | @TheDataIQ | DataIQ | 3

LIFE DEATH AND THE GAP INBETWEEN | KEY FINDINGS

• Finding new customers is the biggest marketing challenge for 61.9 per cent of companies, compared to 33.3 per cent who named retaining existing customers. Interestingly, the effort put into generating new customers may be struggling to have an impact - 18.6 per cent said they are challenged by converting registered web customers into purchasers.

• On average, companies are losing 18.7 per cent of their customers each year. For one in eight companies, the churn rate is extreme at 30 per cent or more annually. This degree of customer loss may be creating a vicious circle in which acquisition is focused on to replace lost business, but failure to address customer retention does nothing to stem this attrition.

• Email is taking the largest slice of marketing spend, at 18.9 per cent on average, although face-to-face runs close at 18.6 per cent (albeit as a channel with a much higher cost base and also one much favoured by B2B marketers). Spending on online advertising (14.4 per cent) and SEO (13.2 per cent) show the extent to which digital now dominates marketing plans.

• Web sites and face-to-face are the chief sources of data captured by marketers, at 28 per cent and 23.9 per cent respectively. Both of these are “storefront” channels where the customer relationship begins and can be managed. However, other similar channels, such as mail order (6.8 per cent) and mobile apps (4.7 per cent) are not being used to the same extent to originate data.

Key Findings• Spend on media and using those channels

to capture data are not well aligned - although printed media (such as press ads and direct mail combined) are ranked highest on spend, they only come eighth for their value as a data source. By contrast, direct marketing (in the form of direct sales and mail order) is ranked highest as a data source, but only tenth for spend.

• Conversion can be affected by a range of marketing actions, but data-driven factors - targeting and analysis, data quality and personalised content - are ranked first, second and fourth for their impact.

• Over four in ten companies (43.4 per cent) automatically validate the data they capture on their websites or as it enters internal systems. Alarmingly, 21.4 per cent have no validation process for data captured from the web, while 15 per cent fail to check data entered into their internal systems.

• Data quality problems are rife (probably as a result of faulty or missing validation processes), with 63.3 per cent reporting out-of-date information, 62.8 per cent incomplete data and 60.1 per cent missing data.

• Permission is a critical dimension of personal information - across all companies in the survey, 23 per cent of customer data lacked appropriate permissions and should therefore not be used. In some cases, this problem is extreme - 7.4 per cent of respondents said over half their data did not have permission for marketing use.

• An indicator that data is being taken more seriously is the rise in investment plans for data technology - 68 per cent of marketers plan to spend more on such solutions in the next 12 months.

• Four out of ten companies are not using third party data to improve the customer information they hold, relying solely on the contact data they have gathered directly. This increases the risk that information is out-of-date, since third parties often assemble data from multiple sources which may be more likely to be fresher - not all customers tell every supplier when they move house, change their telephone number or email address.

• Where third party data is being used to enhance customer records, email address is the most commonly added (43.3 per cent), followed by demographic data (39.8 per cent) and address data (36.8 per cent). Adding social media data is still in its infancy, with just 17 per cent looking to add this to their records.

• Life event information is recognised as being potentially useful or very useful by the majority of marketers, even though fewer than one in 20 say they already have this information on customers.

• Changes to email or postal addresses are viewed as the most important events, with the significance of moving house or taking a new job yet to fully register, even though such life events are an opportunity to update their customer contact data or engage with customers at a time when their propensity to purchase certain goods and services increases significantly. Only 11.8 per cent of marketers understand that a life event is also a moment when customers show an increased tendency to switch suppliers.

“On average, companies are losing 18.7% of their customerseach year.”

“23 per cent of customer data lacked appropriate permissions andshould therefore not be used.”

“Four out of ten companies are not using third party data.”

in partnership with Royal Mail Data Services

Page 4: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

1.1 - Marketing challengesNearly twice as many businesses rank customer acquisition as their biggest challenge compared to customer retention. This underlines the key role which marketing plays in helping the business to grow and that customer management is often a separate function. In between, lapsed customers may become targets for re-acquisition, while yet-to-be-customers have to be encouraged to cross the threshold from registration to conversion.

What is notable about this emphasis on acquisition is that it means marketers are facing their biggest challenge at the very moment when their knowledge of those targets is at its weakest. Without any transactional information to guide them and while online behaviour may still be anonymous, marketers are having to develop propositions, offers and creative that will be sufficiently appealing to bring those individuals towards the brand and decide to purchase.

For the most part, the data used in that targeting will need to be sourced from third parties (or possibly internal files, such as lapsed customers). There is a strong argument to be made that enhancing existing customer records with additional information would prove a more effective use of resources. As one respondent noted, “up-to-date contact info ensures timely delivery and saves time and cost.”

1.2 - Customer churn rateAll companies experience customer churn as products and services reach the end of their life cycle or customers move out of market. Across the sample, the mean rate of churn (once don’t knows have been excluded) is 18.7 per cent each year. For a company with a customer base of 100,000 at the start of the year, that means 18,700 will no longer be active 12 months later, while a company starting with 1 million customers will lose 187,000.

Little wonder that customer acquisition is the biggest challenge for marketers - they need to replenish the base to make up

Section one - Marketing goals and data gaps

SECTION 1 | MARKETING GOALS AND DATA GAPS

4 DataIQ | @TheDataIQ | www.dataiq.co.uk |

61.9%

33.3%

24.7%

24.2%

19.5%

18.6%

Fig. 1.1 - Biggest marketing challenges

n Finding new customers 61.90%n Keeping existing customers 33.30%n Reducing customer acquisition costs 24.70%n Reactivity lapsed customers 24.20%n Reducing servicing and support costs 19.50%n Getting registered web customers to buy 18.60%

Sourcing third party contact data

Page 5: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

| www.dataiq.co.uk | @TheDataIQ | DataIQ | 5

MARKETING GOALS AND DATA GAPS | SECTION 1

for lost revenue from attrition. But failing to address retention may be a cause of customer loss in the first place. At least one respondent noted a growing understanding of this connection: “Customer contact data is becoming more important due to the fact that it is multiple times easier to retain and grow existing customers than it is to acquire them.”

Many marketers assume that churn is the result of defection to a rival provider, viewing customer acquisition as a zero sum game with customers moving between companies as if on a merry-go-round. In reality, churn has many causes, including life events for consumers such as births, deaths and marriages. Even in B2B, a corporate customer may be lost if the immediate contact or specifier undergoes a similar life event and moves on.

1.3 - Marketing budget by channelMarketers now have a wide range of channels to work with, making the choice about the marketing mix a complex one. Digital channels, led by email, online advertising and search engine optimisation, claim nearly half of marketing budgets on average. (The second place ranking for face-to-face reflects the high proportion of B2B marketers in the sample for this survey.) This is a permanent shift in emphasis in some sectors, with one respondent noting, “we are keeping in touch with customers primarily through email as we’re a B2B company.”

Cost bases vary significantly between channels - email is very cheap, which suggests very high levels of email marketing to account for its high share of budget, whereas face-to-face is expensive, which means far fewer contacts are achieved despite the level of spend. Notably, both email and face-to-face are at their most effective the more data is deployed within these channels.

Not all channels are available - or desirable - for all companies. One respondent noted that, “like a bank or phone company, we confirm your address monthly when you pay and get your statement. We would like your email and social media, but they’re nice to have, not necessary.”

1.4 - Data sources by channelIn addition to the business objectives which marketing is set, such as customer acquisition targets and cost per sale, it also generates customer data through its activities. “Owned media” in the form of the brand’s website or its direct sales activities are the two major data sources for most companies. In both cases, data capture is virtually built-in to the interaction.

Mobile web and apps have yet to take off significantly as a source of data, which

Fig. 1.2 - Average annual churn rate

Fig. 1.3 - Mean proportion of marketing budget by channel

Fig. 1.4 - Sources of data by channel

>50%

40 - 50%

30 - 40%

20 - 30%

10 - 20%

0 - 10%

Don’t know

Email

Face-to-face

Online advertising

SEO

Direct Mail

Printed advertising

TV advertising

Sourcing third party contact data

Social

Outbound call centre

In-store

Mobile

Radio advertising

Website

Direct Sales

Contact centre

Face-to-face

Resellers/partners/ solution providers

Instore

Mobile web

Mail order

Mobile apps

Other

3.9%

1.7% 7.8%

19.5%

28.1%24.2%

14.7%

18.9%

18.6%

14.4%

13.2%

12.5%

9.6%

8.1%

8.0%

7.6%

6.7%

5.8%

5.6%

3.6%

28%

23.9%

13.8%

12.5%

12.1%

10.3%

9.8%

6.8%

4.7%

8.3%

in partnership with Royal Mail Data Services

Page 6: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

suggests marketers are a little out of step with customers and their behaviour. There was also little evidence of social being used to generate information on customers.

For some of these options, there is a virtuous circle which can be created. As one respondent noted, “we are predominantly DM-based, so contact data is a pre-requisite to us being able to get our ‘shopfront’ in front of the customer.”

1.5 - Channel share of budget v data source If marketing channels are grouped by type and compared against their role as sources of data, it becomes clear that where marketing spends its money does not then always reap a data dividend. This is clearest with direct marketing - although direct sales and mail order combined were the most important data sources overall, they were the lowest ranked in terms of budget. Equally, press ads and direct mail together took the largest average share of marketing spend yet were not mentioned as data sources.

The root of this disconnect between budget and data capture is likely to be found in the over-riding importance of acquisition as a challenge for marketing. Tasked with growing the customer base, marketers often fight shy of deploying anything which might interfere with engagement and conversion, such as an extended data capture form. In doing so however, they are failing to develop potential data assets for future acquisition campaigns.

Marketing also does not always seem to understand the importance of data to its effectiveness. One respondent noted that, “the half life of any specific data gets shorter as the complexity of media channels increases,” which underlines the risks from this data-budget disconnect.

1.6 - Marketing impacts on conversion ratesMarketers have a number of options in their toolbox which can drive up conversion rate from campaigns - these include creative, data and insight. When asked to rank these in terms of their impact, data quality issues came in first, second and fourth, indicating just how significant the data gap really is. Being able to target, use high quality contact data and personalise messages are clearly seen as highly beneficial and far outstrip the role played by creativity or channel mix.

Insight runs a close second - understanding when a contact needs or wants to get a communication is one of the most difficult variables to capture or

predict, yet marketers rank it third for its impact on conversion. Similarly, marketers need to map channel preferences and life events when selecting their targets and defining routes to market. The better the data, the more effective campaigns will be at delivering the desired outcome.

Some marketers understand this - according to one, “we are beginning to realise the power that good customer data can lend to our campaign strategy.”

Yet there is evidence that many companies fail to recognise the importance of data. One respondent commented that, “when it comes to planning individual campaigns, a disproportionate amount of time and energy is focused on the creative, with the targeting being an after-thought.”

SECTION 1 | MARKETING GOALS AND DATA GAPS

6 DataIQ | @TheDataIQ | www.dataiq.co.uk |

Fig. 1.5 - Channels ranked by budget share and data source

Fig. 1.6 - Marketing impacts on conversion rate

“we are predominantlyDM-based, so contactdata is a pre-requisiteto us being able to getour ‘shopfront’ infront of the customer.”

Printed media (Press, direct mail)

Face-to-face

Digital (Web, SEO)

Broadcast media (TV, radio)

Third party

Social

Telemarketing

In-store

Mobile (M-Web, apps)

Direct marketing (Direct sales, mail order)

Targeting and analysis

Quality of contact data

Delivery when the contact needs/wants it

Personalised content

Promotion/offer

Delivery via preferred channel

Insight into life events

creative design

Multiple response methods

Delivery across as many channels as possible

8

5

2

9

6

10

4

7

3

1

1

2

3

4

5

6

7

8

9

10

7.25%

7.2%

6.86% 6.7%

6.47%

6.05%

5.81%

5.77%

5.66%

5.05%

n Data rankn Budget rank

Page 7: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

| www.dataiq.co.uk | @TheDataIQ | DataIQ | 7

FINDING FAULTS IN THE DATA | SECTION 2

2.1 - Data validation processesMarketing has two major sources of customer contact data - internal systems, where individuals are recorded as customers, and website, where an individual may make contact, register or purchase. Ensuring both of these are delivering high quality data will have a signifi cant impact, so it is encouraging that 43.4 per cent of businesses are using automated validation processes on either web and internal data or both.

A major concern, however, has to be the absence of any form of validation reported by one in fi ve marketers for customer data captured online and by one in seven for data entering internal systems. Automated address validation and/or batch correction

Section two - Finding faults in the data

34.8%

30.5%21.4%

20.3%18.2%15%

10.2%

Fig. 2.1 - Data capture validation processes

n Automatically validate customer address data from web site 34.8%n Automatically validate customer address data from internal systems 30.5%n Don’t validate customer address data from website 21.4%n Manually check customer address data from website 20.3%n Manually check customer address data from internal systems 18.2%n Don’t validate customer address data from internal systems 15.0%n Don’t know 10.2%

in partnership with Royal Mail Data Services

Page 8: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

and validation systems have been available for decades and are now more available than ever as cloud-based services, removing integration challenges and the need for up-front investment.

One fifth of marketers rely on manual checks on address data, which is both very time-consuming and also risks leaving faults in data through simple human error. However, deploying expensive human assets against this type of task is sometimes unavoidable, such as when data matches cannot be made automatically or an ambiguous result has been generated which can only be resolved through human intervention.

Leaving gaps in the data quality process can risk undermining the entire adoption of data in the business. One respondent warns: “The challenge is buy-in from other departments, such as sales. For example, if they get one bad/incorrect lead in a prospect data set, some are prone to then decide the rest of the data supplied is going bad.”

2.2 - Data quality problemsGiven the lack of automated data validation processes, it is not surprising that a wide range of data quality problems are reported. Relying on customers or individual employees (such as field sales agents) to enter data correctly and then manually back-checking data (if at all) will generate errors in many different ways that are then hard to spot.

Having data in an incorrect field is a good example of a data quality problem which will have significant downstream impacts, such as errors in personalisation. Yet this was only the least-reported issue. Half of all marketers are challenged by duplicates and nearly two-thirds by incomplete or out-of-date information.

It is unlikely that every record will

contain an error. But the overall error rate could be taken as the combination of all of these data quality problems, in which case the risk is 0.0138 per cent. While that may seem small, on a database of 100,000 customers, it amounts to problems in 1,381 records or nearly 14,000 records on a file of 1 million customers. The impact of a marketing campaign with that number of errors in its contact data would be flawed from the outset.

The link between data quality and marketing effectiveness needs to be better understood. Some respondents already get this, as with the marketer who said, “critical part of maintaining differentiated one-to-one treatment of our customers.” But another noted of the company’s customer contact data that it was, “important - but not reliable enough for personalised, relevant contact.”

2.3 - Marketing permission on contact dataWherever data is captured - online, internal systems, third parties - it has to be combined with the appropriate permission (opt-in for email and mobile, opt-out for postal). Unless a record has that consent, marketers are not able to use it compliantly. Alarmingly, the average rate of non-permissioned contact data reported across the sample is 23 per cent (once don’t knows are removed). Having nearly one quarter of the potential target base put beyond use in this way is yet another limitation on marketing’s ability to produce results.

What is particularly worrying is that absence of permission can scale rapidly, with over one in 13 marketers saying that more than half of their contact data cannot be used as a result. While seeking an opt-in for digital marketing is sometimes viewed as cumbersome or off-putting, the experience of gaining cookies consent has shown that individuals are increasingly willing to provide permission for their personal information to be collected. Marketers just need to find compelling reasons for them to do so.

SECTION 2 | FINDING FAULTS IN THE DATA

8 DataIQ | @TheDataIQ | www.dataiq.co.uk |

Fig. 2.2 - Types of data quality problems

Fig. 2.3 - Proportion of customer data lacking permission

“The challenge is buy-in from otherdepartments, such as sales. For example,if they get one bad/incorrect lead in aprospect data set,some are prone tothen decide the rest of the data supplied is going bad.”

Out-of-date information

Incomplete data

Missing data

Duplicate data

Spelling mistakes

Data in an incorrect field

None

Don’t know

> 50%

40 - 50%

30 - 40%

20 - 30%

10 - 20%

0 - 10%

Don’t know

63.3%

62.8%

60.1%

50%

38.8%

29.8%

3.7%

2.1%

7.4%

6.1%

12.1%

19.5% 19.5%

22.1%

13.4%

Page 9: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

| www.dataiq.co.uk | @TheDataIQ | DataIQ | 9

FINDING AND FIXING DATA FLAWS | SECTION 3

3.1 - Investment in data technologyMarketing has been forecast to overtake IT as an investor in technology over the coming fi ve years. Proof that this might come to pass can be found among the 68 per cent of marketers who expect to spend more on data and marketing technology over the next 12 months, with nearly one in three forecasting a signifi cant hike. By contrast, just 2.2 per cent expect to spend less.

Cloud and web-based technologies have signifi cant benefi ts in the world of data. Firstly, all IT generates data which may be of use to marketing in the big data era. Secondly, the problems of systems integration, data extraction, recency and

analysis ensuring data fl ows to the business functions who need it most are signifi cantly reduced via APIs and open data models.

Removing the need to build complex, on-premise data infrastructures can also help to reduce barriers to the adoption of data. One respondent noted: “The organisation has a very negative view on data - we desperately need to improve this.” Better use of technology to support contact and address data will likely help to shift this view.

3.2 - Enriching customer contact dataCustomers can tell a company a lot about themselves. However, relying solely on data

derived directly from customers by the organisation, which four out of ten report doing, is likely to leave gaps in marketing’s knowledge of its targets.

By contrast, a small majority (55.8 per cent) understands that third-party data sources can provide signifi cant enrichment of customer data. A further 2.7 per cent use an outsourced service provider to manage their customer data and have their records enhanced by that supplier. It is the experience of these specialist organisations, together with the deep data knowledge they possess, which can help to ensure marketing achieves its optimum level of engagement with prospects and customers.

Section three - Finding and fi xing data fl aws

27.7%40.3% 2.2%

6.1%

23.8%n Rise substantially 27.7%n Rise slightly 40.3%n Stay contstant 23.8%n Decrease slightly 6.1%n Don’t know 2.2%n Decrease substantially 0%

Fig. 3.1 - Investment in data technology next year

in partnership with Royal Mail Data Services

Page 10: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

SECTION 2 | FINDING AND FIXING DATA FLAWS

10 DataIQ | @TheDataIQ | www.dataiq.co.uk |

who take account of such life events will be able to get ahead of the curve in their customer relationship marketing.

But despite the majority of marketers saying they recognise the value of life event data as an indication that a customer may be more likely to purchase or switch suppliers, when it comes to specifi c life events there is a shocking lack of understanding of their true importance.

Changes of address (email and postal) are seen as important, as is a change of name or emigration. But moving home,

One respondent refl ected the reasons why data should be maintained by saying, “good quality customer data helps us get the most relevant information about our product to them to increase their engagement with our brands.”

3.3 - Types of third-party data usedWith email accounting for the largest slice of marketing budgets, it is no surprise that email address is the most widely-sought enhancement among companies that use third-parties to improve their contact data.

Recent DMA research showed that consumers typically keep the same email address for eight years, making it a very stable variable which can serve as a valuable matching point, especially where an individual has been registered online using only their email address and the company wants to add their postal address.

Demographics continue to be vital, too, since many consumers will not necessarily provide their age, income or social status. Likewise, address data can be entered incorrectly or with missing elements, making address enhancement a crucial step to take. One respondent noted: “We are very email-centric currently, with supplemental postal as secondary contact option.” Capturing both addresses gives an increased likelihood that a customer can be contacted and data enhanced and maintained.

Landline numbers still just outweigh mobile numbers as a data item sought by marketers, although the level who add in geo-location data indicates the rising importance of mobile as a channel. Social identities are also starting to show their value, but are yet to be widely used in data enhancement processes.

3.4 - Value of life event dataNearly a quarter of marketers (23.7 per cent) are familiar with the term “customer life event marketing” and already have strategies in place. For a further 46.7 per cent, the term is understood, but their organisation has not yet acted upon it. However, three in ten (29.6 per cent) say it is not a term they know.

Unfortunately for 6.5 per cent, although they possess this insight, they do not know how they would use it - a sure sign that customer life event marketing is still in its early stages of maturity.

3.5 - Importance of life events in customer relationshipsDigital marketers are fond of talking about behavioural indicators, by which they usually mean search terms or social media postings. These can give a very short-term insight into purchasing intentions. Yet most of those behaviours can be traced to a life event which triggers a need. Marketers

Fig. 3.2 - How contact data is used

Fig. 3.3 - Third-party enhancements used

“Demographics continue to be vital,too, since many consumers will notnecessarily providetheir age, income orsocial status.”

Email address

Demographic data

Enhanced address data

Landline phone data

Mobile phone data

Geolocation data

Social media

None

Don’t know

43.3%

39.8%

36.8%

22.2%

21.1%

19.9%

17%

21.1%

5.8%

n Enrich contact data with third-party 55.9%

n Only use contact data we have gathered 39.4%

n Outsource data management 2.7%

n Don’t know 2.1%

55.9% 39.4%

2.7%

2.1%

Page 11: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

| www.dataiq.co.uk | @TheDataIQ | DataIQ | 11

FINDING AND FIXING DATA FLAWS | SECTION 3

either before or after the event, achieve only a neutral rating despite the chain of increased purchasing which always results from moving. Likewise, major life events such as births, deaths and marriages get scant recognition. Even divorce, which may have an adverse effect on an individual’s fi nancial standing, is not seen as very important.

B2B marketers might argue that such events are of little consequence for them. But if their customer is a specifi er who is about to move house, that might also indicate they are leaving their current employer, thereby breaking one link in the relationship chain.

3.6 - Why customer life events matterViewed from the perspective of the organisation, rather than the customer, life events can be seen to hold considerable signifi cance. One-third of marketers (32.7 per cent) recognise that it gives them a reason to engage with the customer, using something that has happened to the customer as a trigger for communication, rather than because it is what the company wants to talk about, promote or sell.

Data can also be updated in these moments, since there is a natural basis on which to ask for new information, check existing data and potentially add new variables. But a surprisingly low number of marketers recognise that there are sales opportunities in life events and a very real threat of customer churn.

Discovering when something has changed with a customer, such as moving house or business address, can be a key marketing trigger. “We often take years building relationships with organisations and catching up with client contacts to understand their business issues. Often, we won’t be able to help, but every so often we can - and that’s when things begin to build with a potential client!” noted one marketer.

Fig. 3.4 - Value of life-event /switching data

Fig. 3.5 - Importance of customer life events

Fig. 3.6 - Importance to organisation of customer life events

Would be very useful, but don’t know how to use it

Already have it

Would be very useful

Would be useful

Would be quite useful

Wouldn’t be useful

Don’t know

Family members starting school for the fi rst time

Provides reason to engage

Opportunity to update data

New sales opportunity

Increased likelihood that the customer may switch

None of these

6.5%

4.8%

41.1%

15.2%

10.8%

15.6% 6.1%

Change of email address 3.71%

Change of address 3.33%

Change of name 2.97%

Customer is leaving the UK 2.93%

Customer has moved home 2.62%

Customer has a new job 2.37%

Death in the family 2.08%

Customer intends to move home 2.05%

New additions to family 2.01%

Birthday 2%

Moving home 2%

Divorce 1.79%

Anniversaries 1.7%

Family members going to University 1.69%

1.42%

32.7%

30.1% 15.7%

11.8% 9.8%

Mean rating (scale:1 = not important; 5 = very important)

in partnership with Royal Mail Data Services

Page 12: Life, death and the gap inbetween - Royal Mail...Life, death and the gap inbetween in partnership with Royal Mail Data Services Research report into the use and management of customer

12 DataIQ | @TheDataIQ | www.dataiq.co.uk |

About Royal Mail Data ServicesRoyal Mail Data Services is an innovative and rapidly growing business unit of Royal Mail. We’re committed to helping our customers build data-driven businesses to improve business performance so we’re constantly developing new contact and address datasets as well as new ways for businesses to source, capture and use data. Every day we’re providing businesses of all sizes with a combination of contact and address data, data insights and analysis, and data quality management services.

Our customers work with us for so many different reasons. To improve the performance of their marketing and customer communications campaigns. To tap into the sales and customer retention opportunities presented by using our unique home and business mover data. To reduce their costs of using inaccurate or out-of-date address data. To enhance their customers’ experiences by delivering more personalised, relevant communications and interactions. To improve the overall quality of their customer data. And these are just a few examples.

You’ll find more information at www.addressnow.co.uk and at www.royalmail.com.

You can also call us direct on 01302 552568 or, just send an email to [email protected].

MethodologyRoyal Mail Data Services conducted an online survey among registered members of the DataIQ community of data and analytics practitioners during December 2014 to January 2015. The self-completion questionnaire was completed by 226 respondents across both business-to-consumer and business-to-business companies.

Life, death and the gap inbetween survey

About DataIQFormed in 1996 DataIQ helps ambitious organisations who recognise data as a valuable asset. We specialise in data consulting, research, audit services and technologies to firstly de-risk data assets and once protected help our clients use their data to drive business performance. We launched the DataIQ programme of events, publications, research and online in 2011 to champion the use of data as a valuable asset and to meet the need from the fast growing number of professionals for specialist help and advice on all aspects of data to drive performance.

Today our community comprises over 5,500 hard-to-reach, cross function data-driven professionals from leading brands and FTSE 100 organisations with over 2,000 having attended our live events, many come again and again.

By registering with DataIQ at www.dataiq.co.uk, you’ll get access to over 600 research reports, the latest news and thinking on all aspects of effective data management.

For more information on DataIQ and how our events, research and publications might help your organisation call Adrian Gregory on 01494 442900 or e-mail him at [email protected]

You can sign up FREE at www.dataiq.co.uk to receive the journal.

in partnership with Royal Mail Data Services