The 4 immutable laws of data revenue maximization
1. Your current business is the key to your future business.
It's true in virtually every business. Data marketing is no exception. If you, or your Data Manager, are not talking to your current data users about the performance of your data, how you can help them improve on it (and use more of it, in the bargain, by opening up a larger universe of productive names), then you're missing your biggest opportunity.
The past could also hold the key to a bright future: Go back and revisit mailers who cut back or dropped out last year, the year before, and the year before that. Talk about who's new on your file. Have them re-test new selections. Offer them a pricing incentive.
Rule number one is to stabilize and grow the activity you already have.
2. New tests are the lifeblood of any data marketing program.
Want a preview of the data marketing revenue you can expect tomorrow? Look at the tests you're getting today. The number of tests. And the diversity of mailers who are testing your data. You need to make sure that your Data Manager is delivering tests, not only from you primary market (the obvious mailers), but from all the secondary markets, as well. That is where the big wins will come. It's obvious the more mailers and markets that can utilize your data successfully, the more revenue you can recognize.
And a list manager can't be lazy about following up. You must know what's working and what's not. It's your best opportunity for putting rule number three into action.
3. You must turn tests into continuations.
Too many data owners-and their managers-believe all they can do is sell tests and that the list will (or won't) do the rest. We know better. ALC data managers consistently produce superior results by structuring tests that have the best chance of working.
By using enhancement and modeling techniques to provide mailers with segments most likely to respond to their offers. And by implementing diligent follow-up procedures so that we can recommend refinements in segmentation, selections, and even pricing (where it makes economic sense).
You'd be surprised how many mailers will give you another shot if you make the effort.
4. Everybody wins-or nobody does.
You've heard of win-win negotiations? Well, there's no place better than data marketing to practice the art. Your cost-of-goods-to-sales ratio is about as low as you'll ever see. So it makes no sense to turn away business. Which is not to say to accept "low-ball" offers.
It is to say that "quid pro quo" is often a very profitable way to go. Mailer wants a lower price, a net name arrangement, a re-use provision. Data Manager says, OK, but negotiates a larger volume commitment. Everybody wins.
Every ALC data manager is trained in win-win negotiations. They never give without getting. And ultimately, our clients win.
Every Data Manager talks about opportunities. But do they have a plan to capitalize on them? We wouldn't go to work without one. A plan that defines our goals, lays out our strategy, and establishes accountability and timetable for implementation. No guesswork. No excuses. And no surprises. Just results.