Breaking into the
Database Business



    Gail Nickel-Kailing
   Business Strategies Etc.
Don’t Mail Junk Mail

Junk Mail:
Sent to the wrong person with the wrong
offer for the wrong product at the wrong
price at...
And, remember…

No one ever made a sale from the bottom of
a trash can!




                                             3
‘Scuse Me?
             “This ‘telephone' has
                    too many
               shortcomings to be
             ...
Today’s Seminar

• Why should you get into the “database
  business”?
• Good data:
    – What it is
    – How to get it
  ...
A Couple of Definitions…

Before we talk about databases, we should
 touch on what you plan to do with them.
So - in the p...
Why Get into the Database Business?

• About 55 - 60% of all printed matter ends
  up in the mail sometime in its product
...
Direct Mail

• A strong economy supports direct mail
• Legislation and regulation limiting
  telemarketing and e-mail mark...
Direct Marketing Expenditures Up
• Since 2002, direct marketing expenditures:
   – 69% increased
   – 16% stayed the same
...
2006 Direct Mail Expenditures




                          Source: The Winterberry Group
                                ...
2006 Direct Mail Growth




                          11
‘Scuse Me?


              “The citizens who live
             in the next century will
                pay one cent for a...
How Personal?
                                                                                                        Ever...
Another Look at the Continuum




                         Source: The Winterberry Group
                                 ...
An Audience of One…


                          Personalized URL




    Personalized Images



                          ...
Value of
Personalization/Customization
• 48% - Increase in repeat orders/customer
  retention
• 34% - Improvement in respo...
Improvement in Direct Mail Responses

• Basic mailing: B&W, static text – 0.46%
  response
• Adding name only – increased ...
‘Scuse Me?


               “I think there is a
               world market for
             about five computers.”
      ...
Addresses – the Good, the Bad, the Ugly

• All addresses are not equal, some are
  correct but not worth mailing to.
• 17%...
E-mail Databases - Even Worse

•   Few places to rent e-mail lists
•   No legitimate compiled lists available
•   CAN-SPAM...
‘Scuse Me?



              “Computers in the
             future may weigh no
             more than 1.5 tons. ”
        ...
You talking to me?
•   D. G. Kailing            •   Dona Gail Kailing
•   D. G. Nickel             •   Dona Gail Nickel
• ...
You emailing me?

•   Gail@business-strategies-etc.com
•   Gail@whattheythink.com
•   Gail_NK@yahoo.com
•   KailingG@aol.c...
‘Scuse Me?

             “There is no reason
              why anyone would
                want to have a
               ...
Poor Data Quality

• Poor quality means lost revenue or higher
  costs
• 23.8% of mail is incorrectly addressed
  and requ...
Where Does Bad Data Come From?

• Self-entry by the customer - my bad!
  – 3124 West McGraw Street (BOA)
  – 3214 West McG...
Customer Data Quality Requirements

• The data are accurate
  – The address actually exists
  – The person/company exists
...
Managing data quality

• Trap bad data before it gets into the
  database
• Flag existing undeliverable addresses for
  co...
Developing a Data Quality Program

• Acknowledge that there is a problem
• Assign a person responsible for the
  program
•...
Selecting a data quality vendor

•   Completeness        • Streamlined
                          testing and QA
•   Enterp...
Keeping Data Private and Secure

• Physical security - access to the facility,
  media handling
• Electronic security - fi...
‘Scuse Me?


              “640K [of computer
             memory] ought to be
             enough for anybody.”
         ...
Mailing Terms You Need to Know

• CASS – Coding Accuracy Support System
  – a certification process to ensure that
  posta...
Working with the USPS
I’m from the USPS and I’m here to help you…
• The Post Office is just that place where you
  buy sta...
Mailing Services Menu
• Lettershop services – “lick and stick”
• Personalized
   – Personalized letter, inserted with broc...
10 Steps to Offering Mailing Services
• Develop a strategic plan.
• Select your postal automation/presorting
  software.
•...
Mailing “Gotchas!”

• Mailing, as a process, continues to get
  more complex.
• Before 1990, there were three postage
  di...
A note: CYA

• Get good “Errors and Omissions”
  Insurance.
• You could be expected to pay for the
  reprinting, mail proc...
‘Scuse Me?


             “The Web – it’s not
               going to be that
                 profound.”
                ...
Prepare a List for Mailing
• Lists cleaned and standardized
   – Per postal regulations
   – For aesthetics, e.g., all cap...
Now that we’ve scared you…

• About 55 - 60% of all printed matter ends
  up in the mail, sometime in its product
  lifecy...
‘Scuse Me?


                “Make all the
             improvements you
               want, just don't
             chan...
Questions?




             The greatest problem in
                communication ...

              the illusion that it ...
Postal Software

• Entry level
  – Envelope Manager, Mailers+4, AccuZIP,
    SmartAddresser
• Mid-tier
  – BCC Software, S...
Resources - USPS

•   USPS - www.usps.com
•   RIBBS – http://ribbs.usps.gov
•   Postal Explorer – http://pe.usps.gov
•   M...
Resources - Events

• MailCom, MSMA - October 8-10, Las Vegas NV
• DMA05, Direct Marketing Association -
  October 13-18, ...
Resources - Associations

• Mailing and Fulfillment Services
  Association, www.mfsanet.org
• Mail Systems Management Asso...
Resources - Publications
•   Mailing List Strategies - A Guide to Direct Mail Success ($) -
    Rose Harper - 30+ used cop...
Gail Nickel-Kailing, Principal
      Business Strategies Etc.
Providing research, advice, and council to
    enterprises a...
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Breaking Into The Database Business

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Breaking Into The Database Business

  1. 1. Breaking into the Database Business Gail Nickel-Kailing Business Strategies Etc.
  2. 2. Don’t Mail Junk Mail Junk Mail: Sent to the wrong person with the wrong offer for the wrong product at the wrong price at the wrong time. Illegal or immoral… 2
  3. 3. And, remember… No one ever made a sale from the bottom of a trash can! 3
  4. 4. ‘Scuse Me? “This ‘telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” Western Union internal memo (1876) 4
  5. 5. Today’s Seminar • Why should you get into the “database business”? • Good data: – What it is – How to get it – How to keep it • Postal mail data vs. email data • Data security and privacy • Choosing a data quality software vendor • Resources 5
  6. 6. A Couple of Definitions… Before we talk about databases, we should touch on what you plan to do with them. So - in the production arena - what is mailing? – Mailing is NOT printing – Postage is NOT revenue – Mail list manipulation and management is NOT prepress file management And always remember: – You must – MUST – keep your mailing software current at all times! 6
  7. 7. Why Get into the Database Business? • About 55 - 60% of all printed matter ends up in the mail sometime in its product lifecycle. • As much as 40+% goes directly into the mail system. • Mailing is the #1 value added service that commercial and digital printers want to add. 7
  8. 8. Direct Mail • A strong economy supports direct mail • Legislation and regulation limiting telemarketing and e-mail marketing • Digital printing approaching an “audience of one” • Most of us are more upset to receive unsolicited e-mail - “spam”- than to receive unsolicited print mail - “junk” • “Flip side” – states proposing “Do Not Mail” legislation 8
  9. 9. Direct Marketing Expenditures Up • Since 2002, direct marketing expenditures: – 69% increased – 16% stayed the same – 15% decreased • Direct mail expenditures: – 54% increased – 33% stayed the same – 13% decreased • Expenditures – getting vs. keeping customers – 52% on customer acquisition – 47% on customer retention • 72% have increased their use of e-mail marketing Source: Direct Marketing Association 9
  10. 10. 2006 Direct Mail Expenditures Source: The Winterberry Group 10
  11. 11. 2006 Direct Mail Growth 11
  12. 12. ‘Scuse Me? “The citizens who live in the next century will pay one cent for a postage stamp.” USPS Postmaster General (1893) 12
  13. 13. How Personal? Every pixel on every part of piece customized to recipient Rules-based database and image merge, plus dynamic layout Target Marketing: Database and image merge – link to databases and images Every piece different Hybrid documents – personalized pages with static pages Dynamic Layout Database merge – link to all fields in database Data merge – name, address, salutation, Plus name or other data embedded in text Document assembly – assemble pre-written paragraphs Mail merge – name and address Static Layout and salutation on letter Address merge – name and address on both letter and mail piece Mass Marketing: Addressed to recipient on envelope – Sorted by ZIP Every piece the same Addressed to “Resident” – Selective inserts – sort by ZIP Addressed to “Resident” – Same contents – each piece the same Customize Source: Personalized Printing, Frank Romano, RIT, May 2001 13
  14. 14. Another Look at the Continuum Source: The Winterberry Group 14
  15. 15. An Audience of One… Personalized URL Personalized Images 15
  16. 16. Value of Personalization/Customization • 48% - Increase in repeat orders/customer retention • 34% - Improvement in response time • 36% - Improvement in response rate • 32% - Increase in overall revenue/profit • 25% - Increase in order size/value Source: Personalized On-Demand Printing and Publishing: Targeting the Right Opportunity, (C) 1997, CAP Ventures, Inc. 16
  17. 17. Improvement in Direct Mail Responses • Basic mailing: B&W, static text – 0.46% response • Adding name only – increased response 44% • Adding full color – increased response 45% • Adding name & full color – increased response 135% • Applying database information in constructing the offer – increased response over 500% Source: An Investigation: Direct Mail Responses, by D. Broudy & F. Romano, Digital Printing Council, October 1999. 17
  18. 18. ‘Scuse Me? “I think there is a world market for about five computers.” Thomas J. Watson Chairman of the Board, IBM (1943) 18
  19. 19. Addresses – the Good, the Bad, the Ugly • All addresses are not equal, some are correct but not worth mailing to. • 17% of Americans move every year, and only 80% of them file a change of address with the USPS. • Customer databases, for the most part, are abysmal. • In a 2005 report by the USPS, UAA mail: – 1.6 B pieces of mail returned – 1.98 B pieces were forwarded – Over 6 B pieces were discarded 19
  20. 20. E-mail Databases - Even Worse • Few places to rent e-mail lists • No legitimate compiled lists available • CAN-SPAM - must honor opt-outs • Unsolicited e-mail - “spam”- vs. unsolicited print mail - “junk.” 20
  21. 21. ‘Scuse Me? “Computers in the future may weigh no more than 1.5 tons. ” Popular Mechanics (1949) (1949) 21
  22. 22. You talking to me? • D. G. Kailing • Dona Gail Kailing • D. G. Nickel • Dona Gail Nickel • D. G. Nickel-Kailing • Dona Gail Nickel-Kailing • D. Gail Kailing • Dona Kailing • D. Gail Nickel • Dona Nickel • D. Gail Nickel-Kailing • Dona Nickel-Kailing • D. Kailing • G. Kailing • D. Nickel • G. Nickel • D. Nickel-Kailing • G. Nickel-Kailing • Dona G. Kailing • Gail Kailing • Dona G. Nickel • Gail Nickel • Dona G. Nickel-Kailing • Gail Nickel-Kailing 22
  23. 23. You emailing me? • Gail@business-strategies-etc.com • Gail@whattheythink.com • Gail_NK@yahoo.com • KailingG@aol.com • Gail@Nickelswood.com • DGailNK@gmail.com • g.nickel-kailing@comcast.net 23
  24. 24. ‘Scuse Me? “There is no reason why anyone would want to have a computer in their home.” Kenneth H. Olson, President DEC (Digital Equipment Company) Convention of the World Future Society (1977) 24
  25. 25. Poor Data Quality • Poor quality means lost revenue or higher costs • 23.8% of mail is incorrectly addressed and requires correction • 2.7% is completely undeliverable • People consider 70% of their e-mail is spam (DoubleClick, 6th Annual Consumer E-mail Study) 25
  26. 26. Where Does Bad Data Come From? • Self-entry by the customer - my bad! – 3124 West McGraw Street (BOA) – 3214 West McGraw Street (BSE) • Internal data entry – Salesforce.com: • First Name Field: Bobbie (Roberta) • Title Field: Mac Operator, retired, deceased • Company Field: CREDIT HOLD ABC Co Inc / The XYZ Group • External prospect lists – External lists are someone else’s internal lists 26
  27. 27. Customer Data Quality Requirements • The data are accurate – The address actually exists – The person/company exists • The data are current • The data are complete – Each address has complete info for delivery • The data are not redundant – One and only one record per contact • The data are standardized 27
  28. 28. Managing data quality • Trap bad data before it gets into the database • Flag existing undeliverable addresses for correction or deletion • Update current records with information changes immediately • Enhance records by appending related mailing information (ZIP+4 codes, for instance) • Standardize addresses to USPS specifications 28
  29. 29. Developing a Data Quality Program • Acknowledge that there is a problem • Assign a person responsible for the program • Identify the source of poor quality • Complete a technology assessment • Evaluate data quality vendors • Implement the solution • Validate the solution 29
  30. 30. Selecting a data quality vendor • Completeness • Streamlined testing and QA • Enterprise design • Comprehensive • Ease of use data capture • Sophisticated • Ease of integration rules engine • Processing power • Vendor support 30
  31. 31. Keeping Data Private and Secure • Physical security - access to the facility, media handling • Electronic security - fire walls, network security, file security • Data delivery - physical or electronic • How to handle “back up, store, and delete” • Production workflow - finished and unfinished products • Distribution of raw and finished products, spoilage 31
  32. 32. ‘Scuse Me? “640K [of computer memory] ought to be enough for anybody.” Bill Gates Microsoft founder and chairman (1981) 32
  33. 33. Mailing Terms You Need to Know • CASS – Coding Accuracy Support System – a certification process to ensure that postal automation software can accurately standardize addresses and encode them with ZIP+4 and carrier route information. • PAVE – Presort Accuracy Validation and Evaluation – a certification process to ensure that postal presorting software can accurately presort and prepare mailings for deposit with the USPS. 33
  34. 34. Working with the USPS I’m from the USPS and I’m here to help you… • The Post Office is just that place where you buy stamps. • The Postal Service – as in USPS – is the service provider with whom you work. • There is no one named “someone” at the USPS. 34
  35. 35. Mailing Services Menu • Lettershop services – “lick and stick” • Personalized – Personalized letter, inserted with brochure into window or matched envelope. – Small volumes – Simple VDP applications – “mail merge+” • Customized – Simple variable graphics and text (versions) • 1:1 Marketing – Complex variables, conditional logic, – Cross media publication – e-mail, Web, direct mail – Fulfillment, response management (including personalized micro-sites, analytics) 35
  36. 36. 10 Steps to Offering Mailing Services • Develop a strategic plan. • Select your postal automation/presorting software. • Select your mailroom equipment. • Develop a mail piece design/validation process. • Develop a list processing/management process. • Develop security/privacy management processes. • Develop a quality assurance program. • Hire/train your staff. • Modify your estimating and pricing procedures. • Use your postal automation software to generate new revenue. Get Involved – Stay Informed 36
  37. 37. Mailing “Gotchas!” • Mailing, as a process, continues to get more complex. • Before 1990, there were three postage discounts. • In 1990, a postal “reorganization” increased discounts to about 75. • Today there are over 4000! 37
  38. 38. A note: CYA • Get good “Errors and Omissions” Insurance. • You could be expected to pay for the reprinting, mail processing, and postage for errors resulting in a failed mailing. • Other liability issues: – Inventory “shrinkage” – Postage management 38
  39. 39. ‘Scuse Me? “The Web – it’s not going to be that profound.” Steve Jobs President, Apple (1996) 39
  40. 40. Prepare a List for Mailing • Lists cleaned and standardized – Per postal regulations – For aesthetics, e.g., all caps • Duplicates eliminated (merge/purge) • Current customers’ names eliminated if appropriate • Names recently mailed are eliminated if appropriate • All records coded for post-mailing analysis (list ID, date of mailing, campaign ID, etc.) • Seed names added to monitor postal performance • Records sorted for maximum postal cost/efficiency 40
  41. 41. Now that we’ve scared you… • About 55 - 60% of all printed matter ends up in the mail, sometime in its product lifecycle. • As much as 40+% goes directly into the mail system. • Mailing is the #1 value added service that commercial and digital printers want to add. • Confirm with your customer and prospect base that you have the market. • Go for it! 41
  42. 42. ‘Scuse Me? “Make all the improvements you want, just don't change anything.” Anonymous 42
  43. 43. Questions? The greatest problem in communication ... the illusion that it has taken place! George Bernard Shaw 43
  44. 44. Postal Software • Entry level – Envelope Manager, Mailers+4, AccuZIP, SmartAddresser • Mid-tier – BCC Software, Satori Software, SmartMailer, Postalsoft Desktop Mailer, Anchor Computer • Top-tier – Group1/Pitney Bowes, Trillium (Harte Hanks), Business Objects, Acxiom 44
  45. 45. Resources - USPS • USPS - www.usps.com • RIBBS – http://ribbs.usps.gov • Postal Explorer – http://pe.usps.gov • MERLIN – www.usps.com/merlin 45
  46. 46. Resources - Events • MailCom, MSMA - October 8-10, Las Vegas NV • DMA05, Direct Marketing Association - October 13-18, Chicago IL • Parcel Shipping & Distribution Forum - October 29-31, Chicago IL • Xplor/Graphics of the Americas - February 27- March 1, 2008, Miami Beach FL • AIIM/On Demand/Xplor - March 3-6, 2008, Boston MA • National Postal Forum, USPS - May 18-21, 2008 - Anaheim CA 46
  47. 47. Resources - Associations • Mailing and Fulfillment Services Association, www.mfsanet.org • Mail Systems Management Association, www.msmanational.org • Alliance of Non Profit Mailers, www.nonprofitmailers.org • PostCom – Association for Postal Commerce, www.postcom.org • Parcel Shippers Association, www.parcelshippers.org 47
  48. 48. Resources - Publications • Mailing List Strategies - A Guide to Direct Mail Success ($) - Rose Harper - 30+ used copies - www.amazon.com • Direct ($) - www.directmag.com • MultiChannel Merchant - www.multichannelmerchant.com • Mail Magazine ($) - www.mail-magazine.com • DOCUMENT - www.dptmag.com • Mailing Systems Technology - www.mailingsystemsmag.com • Parcel Shipping and Distribution - www.psdmag.com • PostalWorld ($) - www.mypostalworld.com • PostInsight - www.postinsight.com • Business Mailers Review ($) - www.businessmailersreview.com • PostalNews - www.postalnews.com • Presort.com - www.presort.com • PostalMag - www.postalmag.com • DM News ($) - www.dmnews.com • Inside Direct Mail - www.insidedirectmail.com 48
  49. 49. Gail Nickel-Kailing, Principal Business Strategies Etc. Providing research, advice, and council to enterprises and service providers to enable effective internal and external distribution of online and offline documents since 1984. E-mail: gail@business-strategies-etc.com Tel: 425-894-8524 Fax: 413-460-3602 Skype: Gail_NK

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