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Q. How do I tackle data decay in my business-to-business lists and how can I be confident of reaching the right people in a company?

According to Royal Mail, business-to-business mail is loaded with address errors. In fact, 67 per cent of all B2B mail sent is affected. Little wonder, when you consider that an estimated 5.7 million company and employee details change every year. In the UK, a business moves address every nine minutes while one starts up even more frequently - every six minutes.

So what is the best way to tackle decay in B2B data?

"There's only one approach - you must keep cleaning your data on a regular basis," says Hakan Axelsson, sales director at EuroContactPool, a Swedish company that provides online mailing and telemarketing lists across Europe.

It is a view shared by many and one that cannot be stressed enough. "Data decay is one of the biggest challenges facing B2B marketers today," says Royal Mail's head of data development, Shaun Randles. He believes reaching the desired people within a business is a much harder task than communicating with the right consumers. Randles suggests carrying out telephone research to find out who is occupying which role in a company.

John Wallinger, database director at agency Craik Jones Watson Mitchell Voelkel, remains realistic. "Data that is 100 per cent clean is a utopia that no-one will ever reach," he says. "My advice would be for every company to look at all the sources for keeping data clean."

Nick Martin, general manager at customer acquisitions solutions company Mardev, believes clients should ask themselves the following questions: "What's the recency of the data? How are the changes in the database tracked?

What are the mechanisms for keeping it up to date? What is a reasonable period of recency?"

Axelsson points out common pitfalls, such as the fact that certain responsibilities can be covered by several job titles within a firm. "You have to research it on a personal level. You'll save time if you take this approach," he says.

KEY QUESTIONS

- What processes are in place to ensure correct targeting?

- How are the changes in the database tracked?

- What are the mechanisms for keeping the data up to date?

- What is a reasonable period of recency?

Q. I am a business-to-consumer marketer who has been collecting customer enquiries and prospect data for some time. How should I go about adding to it?

A. First of all, use transactional data to determine the value of each individual. Richard Webster, group communications director at the consumer data provider DLG, suggests. "By analysing buying habits you can target certain groupings with appropriate products."

Betty Doyle, business unit leader at Acxiom, the customer information management provider, recommends identifying which customers are the most valuable and then running profiles to understand their characteristics.

With this information, it should then be possible to match their profiles to other lists, increasing the number of prospects likely to respond to an offer. As Mike Nalder, head of analytics at marketing information and systems company Eurodirect, says: "You're looking for clones of your existing customers." He suggests identifying all the customers and enquirers on the database and then comparing the attributes of each group to discover what makes a buying customer different to an enquirer.

But what makes a good customer? Suzanne Lewis, director of list broking at consultancy HLB, says: "Are they your highest-spending customers? The ones that stay with you the longest? Or the ones you make the most money from? They will all look and behave differently."

To avoid trouble down the line, Wallinger suggests marketers should obtain detailed information on the individual at the point of data collection. "If you do this first, identifying potential sources of new data is a lot easier," he says.

KEY QUESTIONS

- Who is your perfect customer?

- What attributes make your customers different to enquirers?

Q. How do I know if I am getting value for money when I am buying lists?

A. With difficulty, according to some industry experts. Axelsson believes that to truly determine value, the quality of the contact information needs to be assessed separately from the quality of the targeting. He fears too many people make the mistake of measuring the two together. Cheri Lee Mayell, a consultant at list broker Lloyd James Group, believes it is all about key performance indicators.

"It's crucial you measure how effective your data selection is. Clients who don't measure are missing the channel's key strength," she says.

Clients are often concerned about the volume of names they should buy but some believe there are more pressing issues to consider. "It's not always about the volume," says Mayell. "It's more about the message and how many times you want to contact the individual."

One way to assess value is to test and, although opinion is divided on exactly how much should be done, ignoring it completely is unwise. "Testing is key," says Acxiom's Doyle, "but there's no point in testing much fewer than 20,000 records because the results won't be statistically robust." The general consensus among the industry experts surveyed is that testing 10-30 per cent of a campaign is advisable, depending on its type.

To elicit the best return on a campaign, most experts suggest buying data from different sources. These might be transactional, lifestyle or subscription-sourced lists, for example. DLG's Webster believes campaigns can effectively use lists from up to 10 different sources. Similarly, Andy McDermott, managing director of Abacus, which runs data cooperative Abacus Alliance, warns against "putting all your eggs in one basket".

He adds: "You should be looking to test different sources all the time." Experian Prospect Targeting's commercial director, Peter Thompson, adds: "The days of testing one list are gone."

Data quality is also important in achieving return on investment and tough questions need to be asked of a list broker, says Mardev's Martin.

Recency, methods of collecting data and the mechanisms used to confirm opt-in are good starting points. "Define the terms. What words are they using? These sorts of questions make a big difference," he advises.

While some believe recency is key, others insist value can be found from using older data. "Lapsed subscribers can be so much more responsive because they are not targeted as frequently," says Mayell. Eurodirect's Nalder echoes the sentiment. He believes new addresses are targeted so often within the first six months that it makes sense to use slightly older data because these individuals may be more receptive to offers. Nalder suggests verifying whether a person still lives at an address by determining if they are still credit active.

"It's negative suppression versus positive verification," he says.

KEY QUESTIONS
- What volumes should you be looking at?
- How much testing do you need to do?
- Should you be taking lists from different sources?
- How can you ensure high levels of data quality?

Q. I am a mail-order marketer. I have my own data that I need to augment but I am scared to share it. How do I do it in a way that feels secure?

A. The prospect of allowing others to see their hard-won data is extremely offputting for many list users and the thought of getting inadequate data in return deters some people from sharing all together. Experian's Thompson believes it comes down to a risk analysis. "Yes, your data will be used by other people," he says, "but if the benefits outweigh the risks, you should do it."

Swapping can enrich your database and lead you to names not otherwise available. For some, the advantages are second to none. "It's very cost-effective. I definitely recommend swapping," says HLB's Lewis. "And it's in no-one's interest to give you duff data." Nick Wright, commercial director at list broker Dudley Jenkins, highlights ways to ease any apprehension.

"Ask for references, go to their offices and have a look. Take a look at case studies and make sure they have a secure data exchange," he advises.

Assessing a data co-operative's internal security measures should help ease any fears, and drawing up some rules of engagement will help to level the playing field. But is it really necessary to share information in order to augment a dataset? Not always, believes Lewis. "If you're really uncomfortable with the idea, don't do it," she says. "But remember, there is no such thing as a unique customer." She goes on to warn clients against taking data pooling to the other extreme by relying too heavily on it.

"You need to keep bringing in new names. When there is no fresh blood coming in, you can start to see a detrimental effect on the data."

A large data co-operative ties in more companies, which means your data will be less exposed, according to Thompson. "With lots of members you should feel secure," he says. "Your data will be fully anonymous anyway."

KEY QUESTIONS

- How will your data be handled?

- Is the data exchange secure?

Q. What are the relative merits of buying data online and offline?

A. According to recent research, email open rates have declined from 40 per cent to 32 per cent within a space of a year. So, what is it about email marketing that is still attracting direct marketers? For Dan Bannister, director of Vivid Medianet, a supplier of email list data, the benefits are compelling. "Online can deliver better recency, real-time leads to purchase information and data that is otherwise unavailable. For campaigns that demand speed, email lists can provide greater efficacy," he says.

But a common problem clients encounter when using online lists is their lack of durability. So what is the best way to ensure data is up to date when the average email address is said to last just 18 months? HLB's Lewis says: "Data decay is a different issue online. It's easy for a consumer to unsubscribe. It is done at the touch of a button." She also emphasises the need to test an email campaign to see how it appears on screen when viewed in different browsers and using various operating systems.

Certain products are better suited to an email than a mail or telephone campaign, and the decision to buy online data rests primarily on the demographic profile of the target audience. Adrian Williams, director of data planning agency DM Focus, notes that typical online responders are "younger, more affluent and time-poor than traditional responders to direct mail". Acxiom's Doyle suggests considering whether target consumers have responded online before, have taken part in web-based surveys in the past, or have bought over the internet.

Some industry experts are quick to point out that online marketing does not have to be used exclusively. "The on- and offline channels are complimentary," says McDermott. "A combination of the two can give you great results." But he warns that, when using different channels, it can be difficult to determine which medium has prompted which sale. "Most companies will have a big bucket of names and no way of attributing them," he says.

KEY QUESTIONS

- Does your product suit an online campaign?

- What are the differences between online and offline responders?

- What are the online list maintenance issues?

TOP TIPS

In B2B data, be aware of the various responsibilities covered by certain job titles.

- Define your perfect customer. Is it the one who spends the most or stays with you the longest?

- Don't discount old data. Lapsed purchasers can often be surprisingly responsive because they are not being targeted as heavily as active buyers.

- Spend more time and money on the message and the targeting rather than on the volume of names to mail to.

- Test 10-30 per cent of your campaign and choose lists from a selection of different sources.

- Choose a data cooperative with lots of members - it makes your data more anonymous.

- Think of a series of questions to ask your list broker, covering recency, methods of data collection and opt-ins.

- Note the demographic differences between online and offline responders.