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April 4, 2007
How Not to Be Successful in Direct Marketing
Here are the leading ways to NOT differentiate yourself in direct marketing:
1) Build a massive prospect database. I have had a front-row seat for a number of DB builds over the years, and have come away convinced that large-scale prospect databases are only for the largest DM companies. I think that most DM companies need a prospect datamart (i.e. consisting of a representative sample of the prospect universe) combined with a well-defined campaign execution process.
2) Use standard compiled data. The vast majority of DM companies use the exact same compiled data to produce extract lists. These names are tired, and the data is highly inaccurate. To gain an advantage, seek out vendors that claim to have unique data, along with the standard data.
3) Overuse vertical lists. While this can vary greatly by product, I tend to think that large DM marketers should carefully test any vertical lists before integrating them into an overall strategy. In particular, it is important to understand whether the vertical names (which are usually far more expensive than compiled names) would have been sourced anyway via another channel.
4) Use un-benchmarked modeling. I believe that 60% of firms claiming to offer 'analytics and modeling' do not know what they are doing. By this, I mean that they produce over-fit (or otherwise flawed) models that do not work well in practice -- although they may look great on the development data. All serious DM companies should get an independent assessment of their modeling from time to time.
5) Look forward, not backward. I frequently come across DM companies that spend little, or no, time analyzing what worked and did not work on past campaigns. Important items such as creative, message, offer, etc. can be optimized for the future based on past results.
Best in class DM companies focus on an analytical approach to campaign management.
Posted by BeyeBLOGS at April 4, 2007 2:45 PM
Comments
I agree, nice post. Funny how so few companies get the simple thinks done right. I like the blog
Posted by: Bill Daniels at April 14, 2007 3:21 PM
