2012 Data Acquisition Report


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2012 Data Acquisition Report

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2012 Data Acquisition Report

  1. 1. Presented by he 2012 Data Acquisition Report: New Technologies Reinvent List Building With Innovative Methods For Sourcing Profitable ProspectsSponsored by
  2. 2. “Despite the risingIt’s been firmly established that data quality cost and importance ofhas a direct correlation to the success (or customer data, only 11% offailure) of marketing and sales efforts. That respondents said they are able tofact has now sparked a parallel discussion: manage it very effectively.”how is prospect data being sourced in the - Customer Data Acquisition: The Keysfirst place? The emerging view is that data to Effective List Managementacquisition — the precursor to all database - IDC CMO Advisorycreation — wields tremendous influence Serviceover BtoB pipeline quality, campaigneffectiveness and, ultimately, revenue importance of customer data, only 11% ofperformance. respondents said they are able to manage itComing into focus is the reality that data very effectively,” the report states. IDC saidacquisition strategy is either inadequate or its advisory work with marketing executivescompletely absent, and that much list rental/ reveals that data acquisition and hygienepurchase activity is mired in pre-automation currently suffer from three primary ailments:practices. However, progressive firms are • Lack of central authority tomaking breakthroughs using efficient new understand who owns customer data atmodels of third-party list/contact acquisition. an enterprise level;Recent research validates these approaches. • Inconsistent definitions of customerIn its February 2011 survey, Customer records and key fields within legacyData Acquisition: The Keys to Effective List applications (sales/CRM, finance/billing,Management, IDC sampled list acquisition service, pricing, provisioning and support);budgets, behaviors and beliefs among BtoB andorganizations. While respondents said theirspending on third-party data will increase in • Fragmented usage policies that lack2011 and 2012, the findings expose some enforcement.major caveats. “Despite the rising cost and “The traditional list business is undergoing rapid change. First, there are many new sources and technologies for acquiring names. Web scraping, social media and all forms of inbound marketing are changing the landscape. Second, consumer behavior and attitudes around privacy are changing. And, of course, the legislative environment is changing, as well. Global marketers must understand and comply with regulations that vary by region and country.” Brian Kardon, Chief Marketing Officer, Eloqua The 2012 Data Acquisition Report 2
  3. 3. With so many new factors compounding data “To make smart data investments, inventorydisarray, marketers are looking for guidance. viable data sources to learn what’s availableThis white paper will present best practices in internally and externally, and then investigatedata acquisition as expressed by some of the the strengths and weaknesses of eachtop minds in data marketing and analysis. source to address specific data needs.”Data Discipline: Why It’s - SiriusDecisions, Inc.Needed And How To Apply ItA byproduct of CRM and marketing previously cited IDC report. “Data acquisitionautomation inroads is the revelation that many is the critical front end to that process. Itcompanies are squandering money marketing should be formally defined with process andto faulty databases. This has forced recent policy support to ensure the company getsadvancements in the data discipline, and the most valuable data it needs, and makescast marketing teams as the default owners. the best and fastest use of it.”Data policy is coalescing slowly, with more Murray said defining customer creation asadvanced players emphasizing acquisition. an enterprise process is a significant shift“To gather account and contact data, put that implies three major initiatives for seniormultiple sources to work,” stated analyst executives who intend to remain competitive:firm, SiriusDecisions, Inc. “This helps to keep 1. Standardizing data;data current and complete, resulting in a richunderstanding of accounts and contacts that 2. Creating a multi-tiered data governanceenables marketing to get the right message structure; andto the right prospect at the right time.” The 3. Implementing a master data managementfirm noted that companies earning less than architecture.$1 billion in revenue typically lack internaldatabase expertise at the marketing and saleslevel – where it does the most good – whichplaces many BtoB firms in a Catch 22. Butthere are solutions.“To make smart data investments, inventoryviable data sources to learn what’s availableinternally and externally, and then investigatethe strengths and weaknesses of each sourceto address specific data needs,” statedSiriusDecisions.Data acquisition policy and strategy areclosely linked. “BtoB companies need todefine customer creation as an enterpriseprocess, and not something that just happensin marketing and sales,” said Gerry Murray,Research Manager at IDC and author of the The 2012 Data Acquisition Report 3
  4. 4. Other research supports the idea that To restore trustdata standardization, governance and in their services,management are best accomplished by some firms are employingdedicated personnel equipped with business technology to overcome listintelligence (BI) tools. In its May 2011 report, fatigue and data decay.Business Intelligence Command and Controlfor the Chief Supply Chain Officer, AberdeenGroup found that best-in-class organizationsshare common characteristics pertaining tointernal data roles and the use of technology: for crowdsourcing, social media crawling, keyword search and role-based profiling.• Best-in-class companies are 40% more likely than all others (the Industry Average However, with providers all claiming the same and Laggard companies combined) technology improvements to compensate for to have a single individual or team past list failures, once-bitten marketers are responsible for collecting and managing twice shy when buying prospect data. operational data; and Bridging this confidence gap is innovative• Best-in-class companies are 72% more vendor-neutral platforms. These next-gen likely than all others to have implemented data tools deliver value by blending analytics, an operational BI solution. campaign meta-metrics and strategic insights to more precisely select choice records fromNew Data Acquisition multiple sources in a portfolio approach.Models & Methods Leaders in this space, including Oceanos,Legions of marketers have had bad whose proprietary List Optimizer tool andexperiences renting and buying lists from KnowledgeBank analytics capabilities allowthird party vendors. The familiar story goes marketers to draw data from a selection ofsomething like this: a marketer allocates name-brand BtoB databases in a previewbudget to buy a “qualified list from a reputable file format. Funds are committed only aftervendor” for lead-gen purposes. Relevant queries yield a fresh and precise list of netcontent is created based on list attributes new targets. In this way, the company’s Data(vertical, demographics, titles), and emails are Asset Management Group partners with selectsent. But open rates, click-through rates (CTR) clients to provide risk mitigation, diversificationand prospect engagements resulting from the and cost certainty strategies to ensure datacampaign are dismally low. Meanwhile hard investment optimization.bounces, undeliverable addresses and opt-outs are unacceptably high. Such results have “We’ve been likened to a general contractor,soured many marketers on list vendors as a with the various data vendors being the sub-group. contractors in that comparison,” said Brian Hession, President of Oceanos. “AnotherTo restore trust in their services, some firms analogy is that we operate like a ‘data mutualare employing technology to overcome list fund.’ Clients invest their annual data budgetfatigue and data decay. In addition to frequent with us and we allocate it to different datalist scrubbing, new algorithms are being used providers based on their audience and list The 2012 Data Acquisition Report 4
  5. 5. performance. Our network of providersinclude databases that allow you to The ability to cull‘purchase’ multi-channel records along with preview files of prospects‘rental’ sources such as trade publications, from multiple lists, rendering aassociations/communities, research firms and single master list before allocatingbuyer files. We have the flexibility to shift a marketing dollars, is a gameclient’s data acquisition budget as needed, so changer in the data acquisitionthey’re never locked into any single source.” realm.The ability to cull preview files of prospectsfrom multiple lists, rendering a single masterlist before allocating marketing dollars, is agame changer in the data acquisition realm. Both sales and marketing will seekBearing this out, IDC’s report “…recommends relationships with firms that can assemblethat list acquisition models be determined by “smart records” and can then help themmarket strategy, intended use, pricing and understand its application within the marketingother factors that drive value. This will help and sales process. Smart records will improvemitigate the frustrations with list quality that sales and marketing efficiencies and ultimatelycan arise when sourcing multiple data types optimize demand waterfall performance.without a formal requisitioning process or thirdparty expertise.”“In the near future, marketers will look beyondthe standard contact record and will seek“smart records,” Hession noted. “Theserecords will include business intelligence(BI) in addition to the contact and businessdemographic information. For example, asmart record might include technology brandsin use and job role, along with social mediaintelligence. Sales and marketing will analyzethe appended BI and extrapolate additionalintelligence.” The 2012 Data Acquisition Report 5
  6. 6. ConclusionData acquisition policy and strategy are slowly taking shape. Marketers are starting to scrutinizedata sources, separating reliable feeder channels and methods from the unreliable. One area ofconcentration is the self-sourcing of prospects using web forms.“Self-sourcing is an inherent part of most marketing and sales functions,” Murray said. “Manycompanies get the majority of their contacts from web forms. However, this data is notoriouslydirty. The obviously bad entries can be vetted easily. The hard to correct issues – such as gettingpersonal versus business emails, company names spelled many different ways, business unitdemographics as opposed to corporate – can prevent high quality leads from being processedeffectively. As a result, self-sourcing is not the best way to get clean data into your database anddoes not qualify as a best practice.”Conversely, the “portfolio” approach to data acquisition has emerged as a best practice. In theresearch brief Marketing Data Sources: The Balanced Portfolio, analyst firm SiriusDecisions, Inc.states, “While it would be convenient to get everything from a single source, this ‘bet the farm’model works about as well as the average single-stock portfolio.”“Gathering data from a portfolio of sources improves the odds of success and reduces therisk that insufficient or inaccurate data will sap the effectiveness of account-based or namedaccount marketing, or hinder efforts to improve overall segmentation and targeting,” accordingto SiriusDecisions, Inc.At the forefront of the portfolio data movement are companies including Oceanos, whoseproprietary technology pulls contact records from a group of reputable databases to buildhyper-efficient prospect lists. Also on the rise is the use of list/campaign metadata – aggregatedperformance metrics used to optimizing strategies and lists pre-deployment.Next-gen techniques are going a step further with a new wave of data ROI tools. One exampleis the Opportunity Calculator found on the Oceanos web site. This tool takes industry averagesand actual client campaign metrics and compares the costs of vendor-neutral data acquisitionto one-off data buys and in-house list performance. Efficiencies of the portfolio approach arecompelling, especially to marketers seeking trustworthy prospect data to fuel growth.Best practices for data acquisition and list building can be summarized as follows:1. Assign ownership of data acquisition and management to a person or team;2. Have a defined set of attributes for contacts you need to acquire data on. This leads to much more effective and efficient buys;3. Don’t use any single data source. The portfolio approach has major advantages;4. If you don’t understand the differences between data sources – or the data acquisition market in general – use third party expertise to bridge the gap. The 2012 Data Acquisition Report 6
  7. 7. About OceanosHeadquarters Oceanos provides custom data solutions to optimize sales and marketing performance, guided892 Plain Street by its vision of list intelligence. The firm’s proprietary List Optimizer technology builds dataSuites 8-10Marshfield, MA 02050 sets, from a portfolio of data providers, with unmatched precision and reach to power all types of demand creation and database building programs. This combination of data access and781.804.1010www.oceanosinc.com advanced search provides sales and marketing with a continual pipeline of contact and account intelligence to support all levels of the demand waterfall. The result is a robust, repeatable, demand creation engine. To optimize campaign performance, Oceanos’ Data Asset Management Group works closely with select clients to provide additional risk mitigation, diversification and cost certainty strategies. Oceanos clients are typically large private or public companies within the software, manufacturing, retail, business services, education, healthcare, electronics, and information services industries. Their success has placed them on the Inc. magazine fastest growing private company list three consecutive years. For an independent analysis of Oceanos, reference our SiriusDecisions vendor profile: http://www.oceanosinc.com/Oceanos_Sirius_Profile.pdf About List Optimizer™ The List Optimizer builds custom data sets to optimize sales and marketing performance, guided by our vision of List Intelligence. The software’s specialized search and segmentation algorithms identify and aggregate company and contact level information from a wide portfolio of third-party marketing and research databases. The result is a robust, repeatable, demand creation engine to support all levels of the demand waterfall. About DemandGen Report DemandGen Report is a targeted e-media publication spotlighting the strategies and solutions411 State RT 17Suite 410 that help companies better align their sales and marketing organizations, and ultimately, driveHasbrouck Heights, NJ growth. A key component of our coverage focuses on the sales and marketing automation tools07604 that enable companies to better measure and manage their multi-channel demand generation1.888.603.3626 efforts.www.demandgenreport.com The 2012 Data Acquisition Report 7