The report draws attention to various costs that arise from databases including the number of unsuitable prospects.
Its author Mark Patron said it was not just the higher data costs that had to be considered.
"There are many other hidden costs, such as higher data processing costs due to a larger than necessary file, poorer predictive models and more suppressions required."
The report was commissioned by the recently formed Data Action Group within benchmarking forum Tank! and sponsored by customer data consultant ClarityBlue.
It researched the use of prospect databases by 27 companies, which were heavy direct mailers, of which most were in the financial services industry. This revealed that more than half had a large portion of databases that are never contacted, and showed that their costs could be reduced by as much as 10%.
According to Patron: "The research shows that 'file-turns' is the missing metric, the average number of times a name is mailed each year. Hardly any marketers measure and manage their database file-turns."
By removing those prospects furthest below the average, costs could be saved.
Patron said that the reason behind the problem was that the industry was not set up to give advertisers the right names, but as many names as possible.
"Data suppliers are overselling the same 40m names enhanced with lifestyle and other data," he said.
James Hanscomb, head of prospect management solutions at ClarityBlue, said: "Direct marketing is no longer a numbers game. As the research has proven, being more targeted will not only increase responses but it will also reduce waste. If data sellers are to provide quantity rather than quality, the industry needs rigorous data benchmarking standards to achieve best practice for prospect databases."
The survey also indicated that the future of direct mail growth is strong, with 45% of participants stating that they intend to increase direct marketing next year, while only 10% intend to decrease it.
The full 50-page report is available from Tank! for 拢985.
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