Database: Data Prep
- Key token classification
- Referential identification
- Phonetic similarities
- A final stage of verification and scoring based on pre-defined confidence levels.
Address verification and standardization also must be a constant routing, for every database update and every solicitation base. Depending on the data collection methods, up to 20 percent of a standard list includes incorrect and undeliverable addresses and phone numbers. The process of address verification, cleaning and application of National Change of Address should take place at least quarterly—and certainly before deployment of any major direct marketing campaign.
Finally, optimize attribute append rates; those for screening and model scoring should be more than 85 percent. The accuracy of appended variables should be at 90 percent and more. This varies for categorical (e.g., marital status) or series (e.g., age, income) variables. It also is important to establish more stringent and mandatory data collection rules as part of your CRM system. E-commerce purchases have forced a more complete record entry, although limited to name and address, while other profile attributes are for the most part left blank.
The Strength of the Data
The power of relevancy is undeniable. The million-dollar question is how to develop relevant offers and personalized content to meet your prospects' preferences on a customized level. Amazon has pioneered the recommendation system that is driven by past transactions. It is a standard feature in today's online world to present products that "you most likely would be interested in" based on matching characteristics and similar categories of previous products that you have purchased in the past. The challenge is how to take the product offerings to the next level and strike the right note with each consumer, resulting in higher buy/donate rates.
This is far more of a challenge across prospects where there is no transaction history. Travel companies, for example, would not be satisfied with presenting a prospect a similar trip to the one purchased previously, but need to offer a package that is tailored to the person's needs and likings, with the right attractions and features that meet the person's family situation, hobbies and preferred activities.