Avoid Information Overload
“It comes down to a mathematical equation that says: Here’s how many sales and [how much] profit I got when I didn’t use the data, and here’s how much I got when I did use the data. Is that amount of money going to be greater than what it’s going to [cost] me to buy that data and clean it?” explains Kleinfelter. “It’s really simple, but you’d be surprised. A lot of people don’t do it that way.”
What Not to Do
Whatever type of marketer you are, the least advisable way to decide what is relevant and worth keeping is by making a guess based on your intuition, says Kleinfelter. “What a lot of people do is say, ‘Well, I just know I’m better off with higher income people,’” she describes. “They just rush out and buy high-income information and they don’t measure to see if it gave them the kind of lift to pay back what they are spending to get it.” If you’re basing data collection and upkeep on hunches, warns Kleinfelter, your ROI will suffer.