Bad Hygiene: One of the Seven Deadly Sins of Database Marketing

Companies fail at database marketing for a variety of reasons, says Jeff Hassemer, director of product strategy at the data management solutions division for database marketing services provider Abacus.

During a Webinar held Feb. 23 by CHIEF MARKETER sister publications “Multichannel Merchant” and “Direct,” Hassemer cited the most common reasons:

• Lack of focus on what matters and subsequent “project scope creep.” Said Hassemer: “Often companies attempt too much at once with the database and allow multiple groups within a company to submit requirements.”
• Insufficient data access and data accuracy.
• Lake of time to develop, deploy, and realize the value of the data.
• Failure to plan for and execute strategies that drive ROI. “Create a plan to implement and stick to it,” Hassemer advised. “More importantly, create a three-, six-, nine- and 12-month plan for how you will use the database once implemented–and stick to it.”

And then there are what Hassemer considers the seven deadly sins of database marketing. One of the sins he focused on: neglecting your data hygiene and integration.

This occurs, according to Hassemer, when databases are not properly spec’d and maintained. Inconsistent business rules, data processing, and data reporting will result in information gaps. And because a database is in a sense a living, evolving thing, data hygiene and integration are not one-time events; a successful database requires ongoing maintenance and updating.

Hassemer cited a recent study by a doctoral candidate at the University of Colorado that showed how a user’s confidence in the data was directly tied to how frequently that person used the database.

“It seems commonsensical to me, but it certainly underscores the importance of data hygiene,” Hassemer said. “Put another way, return on a database investment is achieved through the use of the database. The more confidence the users have in the data, the more they will use the database. Ergo, data hygiene is very important to achieving return on the investment.”

Hassemer suggested five ways you can avoid the neglect of data hygiene and integration:

• Develop a solid plan for data hygiene during the update process.
• Ensure that all data are run through the process and that business rules are applied properly.
• Define a match-and-consolidate strategy, and stick to it.
• Ensure that the match-and-consolidate strategy is at the household or business and the individual levels.
• Regularly inspect and report on data quality, then feed the clean data back into the source systems.

That said, “remember, we aren’t saving lives here,” Hassemer noted, “and 100% accuracy is not often attainable. Compromises will have to be made because source systems cannot often provide the proper data to match 100%. Shoot for 95% accuracy or greater, and you will be fine. Shoot for 100% and you will never finish.”

For the rest of Hassemer’s seven deadly sins of database marketing, log on to http://multichannelmerchant.com/events/webinars/seven_sins/ for a free replay of the Feb. 23 Webinar.