Many marketers overlook the value of their marketing database itself. There are two key measures of database health that can set you ahead for this year: Database Quality and Database Value.
Database quality is a topic that can be taken to very granular measures. However, many digital marketers don’t know where to begin. Rather than get into quadratic equations, let’s talk about three simple metrics you need to get started: Bounce rates, Unsubscribe rates and SPAM Complaints. Track these three simple database quality metrics daily and overlay campaign source or segment activity to help you understand danger zones or well-performing data.
Database value is another interesting measure. Most of us can talk to the average lifetime value of a customer or the cost of acquisition of a customer, but can you tell me: What is the value of a single marketable contact in your database?
The average company grows its marketing data at about 40% per year. But it is not just growth that matters. The quality of your marketing database impacts your success as a marketer and needs to keep pace. Bad data costs the average company over $180,000 per year and cost one major retailer as much as $3 million in one year.
So what can you do immediately to make sure that this isn’t your 2014 story?
Follow three simple steps:
- Start tracking database quality and looking for trends over time.
- Analyze email subscriber value (ESV) and understand what is the value of contact records in your database.
- Look for ways to drive activity that steadily improves the two metrics mentioned above while feeding the funnel (more on that next time…)
Coming up next in our blog series on the Value of Your Marketing Database:
- B2B and consumer marketing strategies to build a better quality data… and how to know if they are working.
- How multi-channel marketing grows your database faster.