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Highlights from the Direct Marketing to Business Conference. HSR.edu May 25, 2006. Greg Holliday Jennifer Zieverink. Agenda. Conference overview and key takeaways Seminar Content Building a BtoB Direct Marketing Database BtoB Creative Secrets to Lift Response

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Highlights from the direct marketing to business conference

Highlights from theDirect Marketing to Business Conference


May 25, 2006

Greg Holliday

Jennifer Zieverink


  • Conference overview and key takeaways

  • Seminar Content

    • Building a BtoB Direct Marketing Database

    • BtoB Creative Secrets to Lift Response

    • Turning Every Contact into a 1-to-1 Sales Opportunity

  • DMA Membership Details

  • Q & A

Conference Overview

  • Attendees

    • BtoB marketers who seek to make more effective use of direct/interactive marketing

  • Content organized around three areas

    • Prospecting and Lead Generation

    • Lead Qualification and Conversion

    • Customer Retention & Growth

  • Sponsors

  • Exhibitors

Key Takeaways

  • BtoB direct marketing is unique

  • Many types of valuable data is now available

  • Analytics is important, but most are using very basic statistical techniques

  • Average DB marketing technologists less tech savvy than HSR

  • Lots of great marketing communications opportunities, AFTER you build a good database

Building a btob direct marketing database

Building a BtoB Direct Marketing Database

Greg Holliday

Jennifer Zieverink

What s a marketing database
What’s a Marketing Database?

An organized collection of data about individual customers, prospects or suspects that is accessible and actionable for marketing to support both strategic and tactical decisions across all marketing channels


Database Marketing

  • Uses a MARKETING DATABASE as the vehicle for predicting behavior, measuring media performance, and for storing the transaction data so that list selection, segmentation, and analysis can be conducted.

  • Is data-driven - one step informs the next in a logical, testable, observable and accountable way.

The three r s of relationships
The Three R’s Of Relationships


1 time member





Ultimate Objective of A MDB

To serve as the single repository for all data identified as relevant to meet the goals ofmarketing that are actionable and accessible for:

  • Capturing data from all channels

  • Segmentation and query

  • Modeling and predicting behavior

  • Measuring media performance

  • New product simulation & testing

  • Multi-channel marketing

The three c s of database marketing
The Three C’s Of Database Marketing


    • Who they are and where they live


    • What they buy and what they like


    • What they read and how they communicate

Customer vs prospect databases
Customer Vs. Prospect Databases

  • Customer datatells you about the past

  • Prospect data tell you about the business opportunity

  • What else do they buy?

  • Where are they going to get it?

  • What’s important to them?

  • If you marketed differently, would it

  • make a difference?

  • New products and markets

Data helps you solve the puzzle
Data helps you solve the puzzle


New Products to New Customers

New Products to



New Products to New Members

  • How will you grow?

  • More volume of same

  • members

  • More to new Members

  • New offerings to new

  • markets


Same products to New


Current State





With an mdb marketers can
With An MDB, Marketers Can

Use a set of tactics to “speak” - with a single voice - throughout the enterprise - by having a complete picture of how the customer interacts with their company

The Tactical

Tool Set


Customer Data Touch Points

Mail& Catalog



picture of

the customer’s

interactions with

the enterprise









Service (transactions)

&Out Bound





The marketer
The Marketer

  • Should have access to integrated information

  • MDB solution tools help the marketer to be “intelligent” to develop profitable marketing tactics

Use your mdb to
Use Your MDB to:

  • Have complete & current info on customer activities

  • Measure program impact and provide a baseline for improvement

  • Prioritize expenditures on high potential prospects

Use your mdb to1
Use Your MDB to:


Tell you they’re not …………

Don’t match the profile or model

Outside the legal parameters of the offer

Fall below the acceptable cut off

Market To The Segments


80% OF REV.














Develop Event-Triggered Campaigns













Use an

Algorithm or use

Birth date, etc.

Shifting from product service to customer centric
Shifting From Product / Service to Customer Centric

Service Address

Invoice Address


Buyer / User of Product / Services

What kinds of customer information are companies maintaining
What kinds of customer information are companies maintaining?

ACTIVITY % Companies Using

2000 2002

Individual $ Amount of Purchase 68% 86%

# of Annual Purchases 45% 75%

$ Value of Annual Purchases 51% 81%

Recency 49% 84%

Frequency 51% 77%

Source of Original Lead/Contact 66% 80%

Competitive Products Used 25% 45%

SIC Code 36% 41%

Promotional History 36% 56%

Demographic Overlay 25% 37%

Prospects 72% 76%

Source: Richard Levy, DIRECT magazine

The cast of possible characters we want to contact
The cast of possible characters maintaining?we want to contact

  • Specifiers

  • Influencers

  • Users

  • Decision makers

  • Mailroom supervisors

  • Gatekeepers

  • Purchasing agents

Btob internal data sources

Types of data sourced maintaining?

Accounts receivable records

Shipping and order information

Credit files

Sales leads, sales contacts


Channel marketers end user data

Web data

Customer service systems

Where it can come from

Legacy systems

Operating systems

Sales managers desktops or notebooks

Resellers shipping systems

External rented and purchased data providers

…yes, it can be a bit of a nightmare

BtoB internal data sources

Typical btob data fields

Contact information maintaining?

Title, function

Enterprise v. site

Parent company


Year started

Public v. private


Employee size

Credit score

Size of Yellow Pages ad

Purchase history

Purchase preferences

Fiscal year

Budgets, purchase plans

Survey questions

Qualification questions

Promotion history

Service history

Source code

Unique identifier, DUNS #

Typical BtoB data fields

Note: Italic items come from internal sources.

Key business data suppliers
Key business data suppliers maintaining?

  • Experian

    • 14 million US businesses

  • Dun & Bradstreet

    • 14 million US businesses

  • InfoUSA/Donnelley Marketing

    • 12.5 million US businesses

Business compilation sources
Business compilation sources maintaining?

  • Yellow Page Directories (5200)

  • Business White Page Directories (4000)

  • Chamber Industry Directories

  • Secretary of State Files

  • Courthouse new business listings

  • Annual Reports and 10-K’s

  • SEC Filings

  • Business Journals and Periodicals

  • Internet Research

  • National Change of Address (NCOA)

  • Zip Code Changes

  • Area Code Changes and many more…

Building a channel partner database additional fields needed

Sales rep assigned maintaining?

Territory covered

Products covered

Type of channel partner (top tier, second tier, reseller, distributor, etc.)

Years as channel partner

Industries served

If channel data can link to the end user, bring over the company DUNS/ABI or company ID# for end user

Building a channel partner database: Additional fields needed

How to purchase overlay data
How to purchase overlay data maintaining?

  • Most popular overlay data fields:

    • sales volume

    • number of employees


  • Method:

    • Only append after exhausting all internal sources

    • Clean your database

    • Carefully select a data source

    • Pre-test the match rate

    • Test appended data for validity and response

    • Based on results, calculate the value of the overlay

  • Consider compiling custom data

Demographic and credit appends

Demographic fields to append maintaining?

Carrier route: identifies the individual mail carrier, for maximum postal discounts

Years in business code: indicates stability and purchasing needs

Life cycle predictor: determines whether a growth, static or declining business

Employee size: indicates buying needs/process

Annual sales: indicates buying needs/process Source: Experian

Credit fields to append

Derogatory legal indicator: tax liens, bankruptcy, collection problems

Legal liability amount: dollars of legal liability

UCC data indicator: indicates company has secured a line of credit by collateral

Recent inquiry date: indicates that company is seeking credit

DBT of combined trade totals: average number of days of late payments

Demographic and credit appends

Prizm like cluster profiles for btob
PRIZM-like cluster profiles maintaining?for BtoB

  • D&B offers 22 distinct, mutually exclusive profiles created from combining firmographics and trade variables

  • Branches of a parent company are assigned their own cluster, for site level marketing. Also aggregated at parent company level.

  • Example: Cluster 21: Solid & Sons (554,000 businesses)

    • This group of businesses is marked by its superb financial ratings and above average trade activity. A majority of them are corporations (but at a single location) with an average of 20 employees on site, and about 15 years business experience. Their above average trade activities are typically with creditors, wholesalers and trucking/warehousing. Among the top 10% of this very stable and active cluster are plumbing/heating services, doctor’s offices, construction companies, wholesalers, and other business services. About 40% of them can be found in Southern US.

  • Ruf Strategic Solutions offers 114 B-to-B clusters

  • Claritas also offers their Prizm Cluster Codes for B-to-B

Business information is volatile
Business information is volatile maintaining?

During the next two hours (based on D&B’s database):

706 firms will move

578 businesses will change their phone numbers

514 suits, liens or judgments will be filed against companies

250 business phone numbers will be disconnected

120 new businesses will open

120 D&B credit ratings will change

120 corporate CFOs will change

60 companies will change their names

60 businesses will shut down

10 firms will file a bankruptcy petition

1 company will change ownership

Data decay by element maintaining?

  • Decay rates of key business data elements over a one year period.

  • --From an internal study conducted by D&B.

Data hygiene techniques
Data hygiene techniques maintaining?

  • Train and motivate customer-facing personnel to update the data

  • Use data-cleansing software, internally or externally

  • Standardize data and train on the rules

    • IBM versus International Business Machines

  • Eyeball the data regularly

  • Allow customers access to their records on your web site, so they can make changes

Benefits of good hygiene
Benefits of good hygiene maintaining?

  • Improve response by reaching more people

  • Lower costs with less waste

  • Improve customer satisfaction and company perception

A 2003 report from the Data Warehouse Institute said that bad customer data costs U.S. businesses more than $600 billion a year in postage, printing and staff overhead—not to mention lost opportunities.

Requesting corporate mail room to notify mailer of personnel changes via mail or phone response to “bundle letter” accompanying the catalogs.

--Courtesy of Paragon Direct

Consider database beautification
Consider database “beautification” changes via mail or phone response to “bundle letter” accompanying the catalogs.

Graphic rendition of the duplicate company name distribution
Graphic rendition of the duplicate company name distribution changes via mail or phone response to “bundle letter” accompanying the catalogs.

Here is the same data, in graphic form. Nearly 20,000 unique companies were only listed once, which is good. But 78% of the records represented duplicate companies!

How company name appeared on the file
How company name appeared on the file changes via mail or phone response to “bundle letter” accompanying the catalogs.

Title beautification
Title Beautification changes via mail or phone response to “bundle letter” accompanying the catalogs.

Current State of BtoB Database Marketing changes via mail or phone response to “bundle letter” accompanying the catalogs.

  • General consensus: technological tools are available to mine, retrieve, integrate and use marketing information

  • Few companies have achieved the ideal of integrating customer data into a marketing system to be able to do database marketing

  • Most are still preoccupied with the challenges of basic data management!

  • So, now is the time for marketers and their IT colleagues to learn how to use this technology

Btob creative secrets to lift response

BtoB Creative Secrets to Lift Response changes via mail or phone response to “bundle letter” accompanying the catalogs.

Greg Holliday

Jennifer Zieverink

BtoB Creative Secrets to Lift Response changes via mail or phone response to “bundle letter” accompanying the catalogs.

  • Mythbusters on BtoB creative techniques

  • Critical elements of direct mail creative

  • The 7 Rules of Creation

Nancy Harhut, SVP/ECD, Hill Holliday

Turn every contact into a one to one sales opportunity xerox

Turn Every Contact Into a One-to-One Sales Opportunity, Xerox

Greg Holliday

Jennifer Zieverink

Turn Every Contact Into a One-to-One Sales Opportunity, Xerox

  • Generic equipment renewal contract becomes personalized offer wrapped in segment relevant creative

  • 42 combinations, infinitely scalable

    • Customer segment – creative

    • Offer based on product and usage

    • Time of need

Turn Every Contact Into a One-to-One Sales Opportunity, Xerox

  • Technology

    • ASP.NET and SQL Server

      • Message matrix

      • Content

    • XMPie to convert and transmit data into publishing software

    • Adobe In Design to publish data in creative layout

  • Results

    • Positive customer feedback

    • Lead submissions and revenue doubled

Dma membership details

DMA Membership Details Xerox

Greg Holliday

Jennifer Zieverink

Direct Marketing Association Xerox

  • Founded in 1917

  • Leading global trade association of business and nonprofit organizations using and supporting direct marketing tools and techniques.

  • More than 4,800 corporate, affiliate, and chapter members from the US and 46 other nations

DMA Membership Details Xerox

  • Education

    • Seminars

    • Webinars

    • Newsletters and publications

  • Research

    • Direct Link (www.the-dma.org/directlink)

    • White papers (www.the-dma.org/whitepapers)

    • Research and Statistics (www.the-dma.org/research)


Questions? Xerox

Greg Holliday

Jennifer Zieverink