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2018 Offers New and Old Marketing Data Challenges

As a data broker, AccuList USA is committed to helping its data services clients with data gathering, quality, targeting and analytics. Looking ahead to 2018, we see new and old data issues for direct marketers. A recent Forbes magazine interview with Tom Benton, the CEO of the Data & Marketing Association (DMA), highlighted six of those data challenges for next year.

Perennial Problems From Quality and Integration

Given the huge amount and types of data streaming into marketers, many are struggling to decide which data sets to use and which to ignore, how to keep data accurate and actionable, and how to integrate new data with existing data. Several practices for 2018 success are suggested: clear business goals and target audiences to narrow the data focus; a clear test case for examining or onboarding data; regular examination of new and legacy data accuracy and value; and systems for integrating new data with existing data, especially given the new types of data streams available–everything from wearable gym trackers to chatbots to grocery checkouts.

New Opportunities Via Technology

The Forbes overview also cites the exciting opportunities coming from new marketing tech tools, such as augmented reality (AR), machine learning and AI. Are you ready to take advantage? The articles offers the example of how 1-800-Flowers improved customer experience by integrating the company’s website with artificial intelligence (AI) technology and natural language processing to understand customer demand and then search the product catalog to deliver customized recommendations. Use of AR today ranges from AMC theater movie posters to Simmons Bedding Co. product demos to labels of Australia’s 19 Crimes wine brand. And consider that digital growth company Urban Airship has developed a machine learning algorithm to analyze mobile customer behavior and help app publishers identify the most loyal users and predict those that are likely to churn to improve retention investment in specific customer segments.

Challenges With Cybersecurity and European Rules

If customers don’t trust that sensitive information will be safeguarded, they’ll stop engaging, hurting not only individual brands but the data-driven community. Massive data security breaches made headlines in 2017. That makes data security a top concern to retain customers and prevent risk in 2018, per Benton. Meanwhile, American marketers who seek to tap European markets need to get ready for the enactment of the European Union’s new General Data Protection Regulation (GDPR), taking effect May of 2018. The regulations will set a new baseline for consumer privacy rights and focus on ensuring that proper consents are obtained for a range of data sets and that other privacy rights are observed, such as the “right to be forgotten.”

For more on 2018 data trends, read the Forbes article.

What’s the Secret to Better E-mail Deliverability? Your Reputation

Deliverability is the first step to e-mail marketing success. If your e-mail never hits the inbox, all those subject line and content tactics to drive up open and click rates are useless. So why do the top e-mail marketers get a 90% deliverability rate, while others languish below 50%? A deciding factor is reputation, as measured by a “sender score,” according to Return Path’s annual “Sender Score Benchmark Report” analysis of 4 trillion e-mail messages.

Sender Reputation Is Key to Inbox Placement

A sender’s reputation score is a number, calculated from 0–100, that mailbox providers use to evaluate whether or not e-mail sent by a particular IP address is likely to be legitimate and wanted. A marketer that sends too much unwanted or spam e-mail is likely to see their reputation drop and their e-mail filtered out of inboxes. Return Path’s analysis finds that e-mail senders with a reputation score above 90 saw an average of 92% of their e-mails reach the intended recipient, but e-mail deliverability drops to 72% for senders scoring between 81-90 and just 45% for senders with a score between 71 and 80. By the way, Gmail and Microsoft were identified as the mailbox providers with the strictest deliverability requirements, and the global inbox placement average is only 80%, or 20% of e-mail wasted. Don’t join the crowd.

Boost Your Sender Score With Good Data

So what are the things to do, and not do, to get and keep a strong reputation score? A recent post by Krista Barrack, for the sendinblue blog, cites six ways you could be damaging your sender score, starting with e-mail list issues. One common error is collecting invalid e-mail addresses in your house list (often caused by typos, especially from mobile users). These create hard bounces to erode your sender score. A second mistake is using purchased e-mail data where people have no opt-in relationship with your brand and so don’t engage or mark your message as spam, hurting your score. That’s why, as responsible data brokers, we don’t sell e-mail data and instead broker list rentals so messages are sent by the list owner with valid recipient opt-ins. A third house list problem is allowing outdated, unmailed addresses to accumulate and become invalid, again leading to score-harming hard bounces. To deal with the problem, set up a program of regular communication and hygiene to prune your list frequently.

Spammer Tactics Tank Reputation

Sender scores not only suffer from poor data quality but also poor content quality. If your e-mail message is not mobile-optimized, is loaded with spam words, is plagued by faulty links, and/or is not relevant or honest, recipients are either not going to open it, will label it as spam or will opt-out. Timing matters, too, and while failure to communicate is marketing folly, the more common sin is embrace of a spammer’s excess frequency. Note that studies show read rates drop with increased weekly frequency–and opt-outs and complaints rise to cut your sender score. Finally, watch for spam traps hiding in your e-mail list. These can get you blacklisted! Spam traps come in two flavors. One type is an e-mail address purposely created by ESPs or blacklist organizers and posted online, which gets in your list via data sources “scraped” or “harvested” from the web without opt-in. (So work with a reputable data broker!) The other type of trap is an ESP-deactivated e-mail address that the ESP recycles months later; if you failed to remove the deactivated address as a hard bounce per best practices, the ESP catches you when you re-send to it.

For more insight on e-mailer reputation, get a copy of the Return Path 2017 Sender Score Benchmark Report.

How Direct Mail Retains Its Place in Marketing Tool Chests

Direct mail, perhaps because of its proven workhorse status, keeps a low profile in marketing trend articles, except for the periodic “direct mail isn’t dead” reminder. Yet, despite growing use of digital channels–web, e-mail, social, mobile–AccuList USA and its many mailing list and direct marketing clients join the majority of marketers in continuing to rely on direct mail. Why? Marketing data backs up direct mail’s proven response power and ROI.

Data Proves Mail’s Staying Power

In fact, Target Marketing magazine’s latest study “Marketing Mix Trends 2010-2016” shows that 69% of marketers surveyed either increased or held steady on direct mail spending in 2016. The 6% of marketers decreasing their mail budgets were the smallest group since 2010. A reason for direct mail’s survival as a go-to marketing channel can be seen in the the Data & Marketing Association’s 2016 “Response Rate Report.”  The report showed 2016 direct mail response rates leaping to 5.3% for house lists and 2.9% for prospect lists, the highest DMA-tracked response rates since 2003. By comparison, 2015’s reported rates were 3.7% and 1.0%, respectively. More significantly, no other channel in 2016 had response rates over 1%! Direct mail response allows it to compete in ROI despite higher costs, coming in third at 27%, close to social media’s 28% (e-mail leads ROI).

Basic Tactics Keep Winning for Direct Mail

Bottom line, direct mail’s evergreen power lies in delivering on direct marketing basics. To that end, industry pros–agencies, data brokers, printers, mailing houses and creative services–still need to guide clients toward success. Rather than exploring the diverse creative and tech-savvy ways to meet direct mail goals, it is easier to focus on a few big mail “don’ts,” and that’s the tack recently taken by Summer Gould of Target Marketing magazine in “5 Things Not to Do in Direct Mail.” Obviously there are more than five missteps out there, but Gould chooses key, highly avoidable pitfalls: a hard-to-read font (yes, point size matters); dishonesty (seeking a sale at the cost of long-term customers and reputation); old, bad data in mailing lists (one of our bugaboos); a missing or unclear call-to-action (a response killer); and a promotional focus on features over benefits (a basic marketing no-no). Direct mail–no matter how loaded with interactive QR codes, variable data printing personalization and multi-channel customer analytics–will miss the mark if it misses on these basics! For more, go to http://www.targetmarketingmag.com/post/5-things-not-to-do-in-direct-mail/