Every day 1,600 people die, 18,000 registrations are received for the Telephone Preference Service, 240 businesses move premises and 18,000 people move house.
All of these changes cause consumer and business data to rapidly decay. The integrity of the consumer and business data used within customer communications and marketing campaigns has a direct impact on the response rates, campaign costs and a consumer’s perception of the organisation.
Data cleansing enables organisations to address these issues by:
Over 80% of organisations believe that inaccurate data costs them money. In fact, £18m is wasted each year as a result of mailing deceased individuals. Ensuring that consumer name and address information is accurate, identifying and removing individuals who cannot or will not respond to your marketing communications, and avoiding mailing the same person more than once, are all ways in which wasted mailing costs can be reduced.
Similarly, organisations can increase profitability and return on marketing investment by using up to date change of address information to regain contact with individuals whom they have a previous relationship with. Campaigns targeted to this group of customers are nearly 4 times more effective, in terms of response and purchase activity, than campaigns contacting individuals with no previous association with an organisation.
43% of all people that receive mail for a previous occupant feel the sending organisation is impersonal and out of touch. Improving the integrity of consumer data by addressing individuals correctly, and identifying those that have moved house, died, or have indicated that they do not want to receive direct mail, can reduce the risk of causing consumer annoyance and creating a negative brand image for an organisation.
Mailing deceased individuals is the single largest cause of complaints to the Information Commissioner. Organisations have a responsibility to ensure that the consumer data they use is accurate and up to date (4th principle of the Data Protection Act) and that they follow the DMA’s best practice suppression guidelines. Organisations that fail to comply with these regulations not only face a monetary fine in some instances, (£5,000 per breach of the TPS regulations), but also risk creating negative publicity for themselves within the Industry and with consumers.
Sources: NOP world data quality white papers, Royal Mail 2004, DMIS, CIFAS/Experian research, DMA/Planet Ark research, B2B DM Trends DMIS, Conduit Business Information