Using Data Hygiene

Real World Issues

• Focus moves from strategic concepts in identifying individuals to operational concepts.

• Representative issues• Multiple versions of a name

• People with similar names

• People having multiple relationships (with the company)

• Customers who become dormant

• People who move

• People who provide incomplete address

• Data transcription errors

• Individuals who change their names

• People who do not want to be promoted

Data Hygiene

• Set of techniques that when adopted as a whole

improves efficiency.

• Major advantages

– Increases mail efficiency

– Reduces non deliverables

– Consequently, decrease in expenses

– Counts of duplication help in identifying market segments,

and prospect responsiveness

Applying Hygiene

• Proceeds through a sequence of two steps

– Individual records

– Comparisons among files

• Before contacting using the final list

– Tests are defined and segments are applied.

• Upon receiving responses of the promotion

– Tests are reviewed to test if the segments spanned out as

planned.

Name Standardization

• Parse names into individual components

Dr. Jeffery M. Putsis Jr.

Title =Dr. First Name = Jeffery Middle Initial =M Last Name = Putsis Suffix = Jr.Name

Parsed Name

Address standardization

• Like a name an address can be divided into its elements(First address line, Second address line, City, State, Zip code)

• Also, various edits and validations possible- Order data on address line- Standardized abbreviations for words such as road, apartment, street- Verify that Zip code is valid- Replace vanity names with postal names

File Scrubbing

• Extraneous data included in the address portion of the records.

City Federal FBOAnthony Smith Julia Smith JT1123 Elm StreetAnytown, USA

• Have to remove FBO and JT before matching names across files.

Determining Deliverability

• Information available from USPS to determine deliverability– ZIP +4 file– Delivery Sequence file (DSF)– National Change of Address Processing

• File created from change of address forms that people mail to post offices when they leave

Comparison Among Files

• Identify duplicate records across multiple files.• Focus is on consolidating records for a particular

customer across multiple files.• Major processes:

– Identify duplicates

– Enhance files with external data

– Consolidate data at the individual and household level

Duplicate Identification

• Housholding

– Process intended to identify an aggregation of individuals

• Household level communication is sometimes needed.• E.g., home owners or mortgage insurance.

• Multiple mailings to a household has the same effect as

multiple mailings to an individual.

Uses of Duplicate Identification

• Measure list fatigue

• Estimate how new lists should perform

• Identify new market segments

• Identify best performing areas

The Consolidation Process

• Retain duplicates

identified between

records, and between

files.

• Process Steps

Load Records

Identify new/changed recordsExtract existing records that match

Purge/Merge at household and then at individual levelTable of names

Match Back

Campaign Management

Major Marketing Processes

• The process

Marketing

Management

Monitor

Coordinate

Planning Promotion Development

PromotionExecution

MarketingAnalysis

Campaign Phases

• Campaigns are groups of related promotional efforts undertaken to achieve a set of marketing objectives.

• Phases in the life of a marketing campaign– Planning

– Development

– Execution

– Analysis

Management Processes

• Monitoring• Management must have a facility to keep track of

the status and schedule of each campaign.

• Coordination• Realize interdependence between tasks.

• Resource utilization and allocation.

Campaign Planning

SegmentCustomers

Budget & Schedule

Segment PromotionPlans

Research & Testing

Store Variables about Customer Segments

Time Frame

Objectives

Gross Volume

estimates

Major Media

decisions

Campaign calendar

Marketing Budget basis

Resources and Milestones

Continuous update

Methodology and type of tests defined

Tests improve profitability

Increase effectiveness of future campaigns

Campaign Development

• Process Promotion

Develop Collateral

Mail Package

Package Items

DevelopOffer

Define Cells

Select Names

Script

Advertisement

Identify Offer

DefineConditions

SelectCollateral

SelectOffer

Selection NameCriteria

SpecifyKeycode

Identify Prospects

Analyze Names

Mark Names

Extract Names

Campaign Execution

• Typically outsourced.

• Common Services include– Mail stream processing

– Key code level maintenance

• Advantages of telemarketing– Disposition for each solicitation

• Sale

• Contact including/excluding sale

• Non-contact

• Contact not attempted

Campaign Analysis

• Profile Analysis

– Compare the composition of responders with non

responders

– Characteristics in terms of database variables

• Response Analysis

– Return on promotions

– Response, inquiries, and lead summaries

– Analysis at segment level.

Profile Analysis

• Profile analysis can be conducted during– Defining customer segments– Designing tests– Developing selection criteria– When responses are received– After promotion to review attrition

• Profiled using existing or derived fields.

Response Analysis

• Calculating trends

• Performed at

– Segment

– Market

– Product line

– Campaign, and

– Promotion levels etc.

• Problems occur when sales cannot be tied directly to the

promotion or individual