The document discusses the concept of cooperative databases where competitors agree to pool customer data. Being located near competitors provides advantages from access to specialized talent and suppliers. While competitors, analyzing pooled historical customer data from many companies allows for more accurate predictions of future customer behavior than any single company could achieve alone. Successful cooperative databases require companies to contribute high quality data and only share it with partners who will also provide valuable data in return. The document provides examples of cooperative databases that have formed in Germany and other countries to share customer transaction data among mail order companies.

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Cooperative Database
the situation in which even competitors win

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The interesting thing about cooperations
Adaption of the concept: cooperative databases
1
2
5
Agenda
It works!

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The interesting thing about cooperations
facts to consider
North America:
New York, Los Angeles..
Europe: London, Paris
Asia: Tokyo
North America:
New York, Los Angeles..
Europe: London, Paris
Asia: Tokyo
Frankfurt: Banks
Paris: Fashion
…
Frankfurt: Banks
Paris: Fashion
…
Furniture,
Fast-Food
…
Furniture,
Fast-Food
…
„Working“ Cluster: advantages because of a critical mass of businesses,
specialised manpower, capabilities and knowledge
Why do even competitors often decide
to chose a location near each other?
Why do even competitors often decide
to chose a location near each other?
The headquarters of
the 500 biggest
global players are
located in only 20
urban areas!
The headquarters of
the 500 biggest
global players are
located in only 20
urban areas!
Headquarters of
competing players are
often located in the
same city
Headquarters of
competing players are
often located in the
same city
Competitors are often
located door-to-door
Competitors are often
located door-to-door

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The interesting thing about cooperations
facts to consider
What do you know
about Barack Obama?
Not each and every detail?
What do you know
about Barack Obama?
Not each and every detail?
Who knows more than the most wise guy in the world?Who knows more than the most wise guy in the world?
Crowds know more
than a single person
is ever able to know
He married Michelle Obama in 1992
He likes modern art he was born in Honolulu
He saw his Dad for the last time
at the age of 10, because his parents
got divorced
He was the first afro-american who was chosen to
be president of the Harcard Law Review Journal
He was called
Barry by his
friends when
he was a boy

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The interesting thing about cooperations
facts to consider
You want to know your customers future behaviour? Look at the past!
The more data you have got, the better you know your customer!
You want to know your customers future behaviour? Look at the past!
The more data you have got, the better you know your customer!
How to predict future? Do you know what the weather will be
like in the second week of march in Dubai next year?
How to predict future? Do you know what the weather will be
like in the second week of march in Dubai next year?
Collection of data of/ in
the past can predict
future behaviour !
Collection of data of/ in
the past can predict
future behaviour !

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steps towards a successful cooperation
build a pool of knowledge
Willingess to share data / trustWillingess to share data / trust
Collect and pool the dataCollect and pool the data
Give those, who gave data, useful information backGive those, who gave data, useful information back
Select the information you give back in the most useful waySelect the information you give back in the most useful way
Constantly work on the quality of the poolConstantly work on the quality of the pool

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The interesting thing about cooperations
it works all over the world!
All over the world, people are willing to share their knowledge and to build a pool of dataAll over the world, people are willing to share their knowledge and to build a pool of data
Germany, France, USA, UK,
Canada, Japan, …
Do I want to
share my data?
Do I want to
share my data?

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Adaption of the cooperation concept
cooperative databases
 Via which channels do people buy?
 When do they buy?
 For which amount of money do they buy?
 Who is a Multi-Buyer?
 How often and out of how many catalogues do they buy?
 How to best address a certain person?
 Who pays and who does not?
 Who returns and who does not?
 Via which channels do people buy?
 When do they buy?
 For which amount of money do they buy?
 Who is a Multi-Buyer?
 How often and out of how many catalogues do they buy?
 How to best address a certain person?
 Who pays and who does not?
 Who returns and who does not?
because giving my data into the pool, means getting much more information back!because giving my data into the pool, means getting much more information back!

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Adaption of the cooperation concept
cooperative databases
 Shit in, shit out: I want to get „good“ data out of the pool,
so I give „good“ data into the pool
 Everybody wants to get legal data, so only legally generated data goes
into the pool
 I do not want to give data to direct competitors: direct competitors can
be blocked
 Shit in, shit out: I want to get „good“ data out of the pool,
so I give „good“ data into the pool
 Everybody wants to get legal data, so only legally generated data goes
into the pool
 I do not want to give data to direct competitors: direct competitors can
be blocked
What a successful cooperative database looks like:What a successful cooperative database looks like:

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Adaption of the cooperation concept in Germany
it works!
Is now
Together we know 95% of the
german mail order customers!
More than 35 million Households
More than 600 million transactions

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our goalsour goals
mail-order-alliance
business model
Mail-order-alliance
Information about the purchaser new prospects
Pool of transactional
data
when, how much, how
often individuals ordered
 provide addresses with proven mail-order activity
 deliver prospect names matching to your customer profile
 reactivate lapsed customers / convert prospects into customers
 provide addresses with proven mail-order activity
 deliver prospect names matching to your customer profile
 reactivate lapsed customers / convert prospects into customers
your benefityour benefit
 more efficient budgeting
 selective mailings, higher response rates and lower churn
 more efficient budgeting
 selective mailings, higher response rates and lower churn
member 1
member 2
member 3
member 4

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Recency
Timeliness
Recency
Timeliness
Frequency
Frequency of
purchases
Frequency
Frequency of
purchases
Monetary
Monetary
value
Monetary
Monetary
value
mail-order-alliance
the basics
R F M
Many decades of direct marketing have proven, that transactional
data is highly relevant to successful future campaigns!

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Multi
Buyer
mail-order-company 1 mail-order-company 2
mail-order-company 4
Address-potentialAddress-potential
Customers 1
Customers 4
Customers 2
mail-order-company 3
Customers 3
mail-order-alliance
acquisition of new customers - prospecting

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mail !mail !
good chance forgood chance for
(re-)activation(re-)activation
housefile with the mail-order-alliance
data file of the company
active purchasers
inactive purchasers
(e.g. no purchase within
the last 12 months)
prospects
inactive purchasers
prospects
currently active in mail-order
business
no info about mail
order activities
No informationNo information
available !available !
mail !mail !

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Adaption of the cooperation concept
e@lliance
Supplier of advertising space:
Provides advertising space and receives payment
full control concerning content of the advertisement
guaranteed through approval process
Supplier of advertising space:
Provides advertising space and receives payment
full control concerning content of the advertisement
guaranteed through approval process
User of advertising space:
Places ad-content in a way, by which accurately fitting
mail-order-customers can be reached
Benefits from the recommendation-character
User of advertising space:
Places ad-content in a way, by which accurately fitting
mail-order-customers can be reached
Benefits from the recommendation-character
 Covenient delivery via platform
 Reporting for user of thead-space
 Opt-Out management
 Covenient delivery via platform
 Reporting for user of thead-space
 Opt-Out management

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Adaption of the cooperation concept
e@lliance

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