Extra Steps Can Cut Bad Addresses to Lift Mail Response

Bad address data continue to depress ROI for a significant chunk of direct mail marketers. For mailers struggling with bad addresses and deliverability, AccuList® suggests three remedial steps that go beyond standard merge-purge processing and USPS National Change of Address (NCOA) updating.

But first the good news for direct mail fans: The channel’s superior response and ROI lead 58% of marketers to plan expanded investment in direct mail across industries in 2023, according to a recent survey by Lob and Comperemedia. The bad news: 32% of marketers still worry about achieving response goals because of “bad address data.” 

So what can mailers do to cure this “bad address” problem?

#1 Check Individual Record Quality Before Processing

The initial step AccuList recommends is implementation of a data processing and quality control regimen before merge-purge, hygiene updating or appending of new data, whether for prospecting files or house files.  For example, first and last name on internal and external lists should appear in separate fields, along with the corresponding postal address in separate columns.   

At AccuList, our data experts begin by applying utility programs to individual records before standardizing them to find hidden duplicate or misspelled names, titles and addresses, or other deliverability issues. Next, we use the USPS Coding Accuracy Support System (CASS) certification on individual records to verify that each address matches with the right zip code and delivery route. 

#2 Correct for Multiple Deliverability Issues

The second step is to update mail files for multiple potential address and deliverability issues. Mailing files should be:

1) devoid of house file do-not-mail requests;

2) matched against DMAchoice (the Association of National Advertisers—ANA—mail preference service);

3) updated against USPS NCOA to meet Move Update requirements;

4) address-corrected to meet USPS Delivery Point Verification (DPV) standards; and

5) run against other public source databases for records not found with NCOA, such as deceased or prison addresses.

#3 Go Beyond NCOA

Because the USPS FASTforward or NCOALink represent only a portion of total US movers, a third step is to initiate more advanced mover hygiene.  At AccuList, we also access the most comprehensive public and private “Mover” databases commercially available to fill in the gaps. We can then identify a much greater number of postal addresses that are verified as Deliverable or Undeliverable As Addressed (UAA). 

In fact, this advanced hygiene allows us to identify up to twice the number of address changes versus matching addresses on the NCOA database. And we can not only confirm if the intended recipient is no longer at that address but help find the new address by comparing real-time information.

Via these extra data processing steps, marketers can eliminate duplicate names and addresses, avoid offending those who do not want unsolicited mail, reduce undeliverable mail and wasted postage, and earn postal discounts. An important “byproduct” of this process for prospecting mail is the identification of “multi-buyers.” You can mail them a second time, absolutely free, subject to list owner approval of your mail date and creative!

For more on AccuList data services, see https://www.acculist.com/merge-purge/ and https://www.acculist.com/advanced-data-hygiene/

Avoid Segmentation Missteps to Boost List ROI

List segmentation is key in targeted direct marketing, which is why the AccuList team offers clients help in defining best-performing customer segments via predictive analytics services and data management services. Over the years, we’ve learned that the secret to success is as much a matter of strategic mindset as technical expertise. A recent MarketingProfs article by Mitch Markel, a partner in Benenson Strategy Group, makes that point by identifying some of the common strategic errors that can trip up a segmentation effort.

Obvious Parameters and Old Strategies Dig a Rut

Marketers need to be aware that segmentation models can slip into an ROI rut. Use of obvious profiling parameters and assumptions is one reason. Certainly, demographics (or firmographics), stated needs, and past purchase behavior are essential in grouping for likely response and lifetime value, but people don’t make decisions solely based on these factors. Markel urges research that also looks at fears, values, motivations and other psychographics in order to segment customers or prospects not just as lookalikes but also as “thinkalikes,” which can be especially helpful in crafting personalized content and messaging. Markel cites the examples of car buyers grouped by whether they value safety over performance, and food purchasers sorted for whether they stress healthy lifestyle or convenience. Past success is another reason segmentation can get stuck in a rut. Because segmentation requires an upfront investment, marketers tend to want to stick with proven targeting once the segmentation study is completed. But today’s hyper-personalized, digital environment has accelerated the pace of change in markets, perhaps shifting customer expectations and preferences away from an existing segmentation model. Markel advises an annual “look under the hood” of the segmentation engine to see if segments are still valid or need appending/updating. An annual audit can avoid the expense of a broader overhaul down the road.

Big Data Blindness Ignores Potential Audiences

One outcome of segmentation based on existing customers is blindness to potential audiences. Segmentation research often uses the existing customer base and surveys of people that marketers assume should be targeted. This can create marketing campaigns that miss groups that Markel calls “ghost segments,” people who could be among a brand’s best prospective customers. Markel suggests a periodic look at non-customers for conversion potential as one way to capture these “ghosts.” And, of course, if a new product or service is in the works, research should ask whether it will attract new groups differing from the existing customer profile. Another reason ghost segments are common is that marketers, overwhelmed by the task of sifting “big data,” fall back on whatever data sets are handy. Markel suggests that it would be better to bring in big data at the tail end of segmentation. He advises analysts to start by creating segments using primary research, add existing customer “big data” to target those segments more efficiently, and then plug segments into a data management platform for insights on other products, services, interests, and media that may correlate.

Analytics Miss Without a Companywide Strategy

Finally, Markel stresses that a segmentation study that ends up residing only with a few marketing decision-makers will fail to live up to its ROI potential. Customer and prospect insights have relevance for multiple departments and teams, from sales to customer service to finance. In order to deliver a seamless, personalized customer experience, Markel suggests creating 360-degree customer personas and promoting them throughout the organization. Management can start with workshops to educate employees on the use and importance of those personas both for their departments and the organization, and then can schedule check-ins to show team members the resulting benefits of segmentation and targeting implementation. If segments are made relatable, it will ensure they are used and embraced across the organization.

Make Sure You Have a 2019 Data Hygiene Plan

As marketers prepare to launch their 2019 campaigns, they should make sure that a complementary data hygiene plan is in place, and certainly AccuList USA data services stand ready to aid in ensuring the quality, up-to-date, enriched data essential for achieving marketing results.

Why Does Clean Data Matter?

Marketers don’t want to join the 88% of U.S. companies whose bottom lines are hurt by dirty data, based on Experian research. The top areas impacted by poor data practices are marketing (66% of companies) and lead generation (80% of companies), according to DemandGen. Dirty data leads to poor targeting and ROI for marketers, reduced revenue from customer acquisition and retention, wasted company resources and misdirected strategy. To avoid that fate, marketers need a plan to regularly fix any customer and prospect data that is incorrect, inaccurate, incomplete, incorrectly formatted, duplicated, or irrelevant, plus to enrich the database via appending of relevant but missing customer parameters.

Developing a Data Cleansing Strategy

Pete Thompson, founder of DataIsBeauty.com, has put together a useful primer for developing a data hygiene plan. Start with the basics: Decide what data is important for business decisions and estimate the ROI of data quality improvement. Then review existing data processes: types of data captured, where it comes from and how is it captured, the standards for data quality, how errors and issues are detected and resolved, etc. Other questions include the main sources of errors, methods for validating and standardizing data, methods for appending or combining multiple sources, automation used if any, accountability for data quality, and measurement of data ROI.

Key Elements of a Data Hygiene Plan

Without going into detail, the basic steps of the data plan will start with creating uniform data standards, preferably applied at the point of data capture. Then develop a data validation process, applied either when data is captured or, if that is not possible, at regular intervals for data already entered. After data has been standardized and validated, you can append missing fields by cross referencing with multiple data sources. Streamline the process through automation tools and scripts, saving time and money and reducing human errors. However, while it may be tempting to start with automation, Thompson cautions against putting the cart before the horse; success requires having data standards and a proven validation process in place before automating. And then set up a monitoring system of the hygiene process, whether automated or not, via random test samples and back testing, and implement periodic checks.

For regular monitoring, or overall scrubbing without an automated regimen, experts suggest a quarterly hygiene review for databases of 100,000 records or more, and semi-annual cleaning for smaller databases. Based on our own years in the data business, we think the best advice from Thompson and other experts is to enlist the services of data processing pros when hygiene is due!

Check out more details from Thompson’s data hygiene plan.




U.S. Marketers in Europe Wrestle GDPR Data Compliance

AccuList USA supplies data and direct marketing services to organizations with international as well as domestic reach. Starting this May, any U.S. marketer targeting actual or potential customers in the European Union (EU) countries must navigate a changed data landscape thanks to the new General Data Protection Regulation (GDPR). It doesn’t matter if the brand, marketer or data processor is based in the U.S.; strict compliance is mandatory. And shrugging off new data rules is a very costly mistake. Noncompliance can mean a fine equal to 4% of global annual revenue!

GDPR Seeks to Protect Personal Data

The intended purpose of the regulation is protection of non-anonymized personal data, and compliance is required of any company (or organization) that stores or processes that personal information about individuals (“data subjects”), who are defined as European citizens residing in an EU state. The protected personal data includes:

  • Name, address, and phone number
  • IP address and cookies
  • Racial identity
  • Religion and religious affiliation
  • Health and genetic data
  • Biometric data
  • Sexual orientation and gender preference
Individuals Have New Data Rights

GDPR’s regulated “data controllers,” who determine data processing, or “data processors,” who handle data on behalf of data controllers, must respect key rights with regard to personal information. For example, there is an individual’s right to access, to knowing what personal data has been collected and how that data has been processed. There is a right to accuracy, and restriction of data processing in the case of inaccuracy. There is a right to “freely given” and “explicit” consent for processing and storage of personal data. Plus, consent may not be regarded as “freely given” where performance of a contract is made conditional on consent, or is unnecessary to performance of a contract. The data subject also has the right to data portability, meaning the ability to request and receive personal data in a format easily transferred to another data controller. Finally, there is erasure or “a right to be forgotten,” which allows individuals to withdraw their consent for data use or storage and demand that personal data be erased and no longer processed. Not sure it applies to you, direct marketer? Consider this GDPR wording: “Where personal data are processed for the purposes of direct marketing, the data subject should have the right to object to such processing, including profiling to the extent that it is related to such direct marketing, whether with regard to initial or further processing, at any time and free of charge.”

How Are U.S. Brands Handling GDPR?

Obviously, GDPR has big impacts on business strategies in the European market. For one thing, if you are handling personal data on a large scale or processing particularly sensitive data (such as health, race and religion), GDPR may require you to designate a specialized Data Protection Officer (DPO) to report to senior management. In terms of strategic response to the regulation, 64% of executives at U.S. corporations reported that their top strategy for reducing GDPR exposure is centralization of data centers in Europe, according to a report released by PricewaterhouseCoopers (PwC). Just over half (54%) told PwC they plan to anonymize European personal data to reduce exposure. A significant minority are even cutting European market efforts, with 32% of respondents planning to reduce their presence in Europe, and 26% intending to completely exit the EU market.

For a definitive guide to GDPR and explanations of key terms, see this Direct Marketing News article.

 

These Tech Trends Likely to Drive 2018 Direct Mail Success

Because direct mail data and support services are at the heart of AccuList USA’s expertise, we are always delighted to pass along tips on how to use direct mail more successfully in multi-channel marketing strategy. A blog post by Postalytics, a self-serve direct mail automation tool, recently mined multiple expert sources for the most influential direct mail trends of 2018, ranging from creative to technology to mailing strategy. If you have any lingering doubt over adding interactive technology to traditional snail mail, just take a look at the article’s top mail technology trends for this year.

Automation and Integration: Speedy, Targeted Production

Unsurprisingly, automation purveyor Postalytics puts mail automation software at the top of the list, but they get plenty of industry support. Automation allows marketers to quickly generate high-quality, personalized and trackable letters and postcards by leveraging templates, digital cues and automated workflows, cutting direct mail production cycles from 4-6 weeks down to 1 week. That automation also allows marketers to maximize response by integrating triggered direct mail into any step in the buyer’s journey, online or offline, so that mail delivery taps into the appropriate timing, content and call-to-action.

Linking Offline to Online: AR, QR and PURL

Interactive, mobile-scanned Augmented Reality apps and QR codes, as well as personal urls (PURLs) linked to targeted content-specific landing pages, allow direct mailers to connect offline marketing’s printed paper with online marketing’s digital pages, images, animations and videos. Studies show that combining snail mail with interactive digital is key to greater overall campaign response and ROI.

Enhanced Data Targeting and Personalization

The magic wand of quality, enhanced data can be waved over direct mail to match the right message to the right people at the right time. Good mailing list data allows for targeting based on shopping habits and needs, retargeting and cross-selling, recapturing and reactivating of lost prospects and customers, leveraging of trigger events and personal preferences, and more–provided there is a commitment to quality database hygiene and processing. Customer and prospect data lists need to be up-to-date, de-duped and accurate, and mailings must use cost-effective advanced postal address hygiene and pre-sorting. In addition to cost-effective, high-response targeting, good mailing data allows for sophisticated content personalization far beyond simply inserting a name, the kind of personalization that has become a basic expectation of customers. Marketers can even create personalized coupon codes that deliver a much higher ROI than generic coupon codes; these unique codes make customers feel valued on an individual level.

For 2018 direct mail trends in creative design and mailing strategies, see https://www.postalytics.com/blog/direct-mail-marketing-trends-for-2018/