Live from DMA2010: Trends in Data Collection

Hundreds of bleary-eyed conferees crowded into the room, lining the walls and tripping over attendees sitting in the aisles. There to listen to the thought leadership session "Integrating Online and Offline Data for Digital and Direct Marketing," they were present and accounted for at 8:45 a.m. on Tuesday at DMA2010 in San Francisco. Panelists noted that the attendance reflected the exponentially increasing interest in the subject of data practices. Ranging from legislative concerns to simple mechanics, panelists discussed how direct marketers can and should be using consumer data. Those speaking were: Moderator Jonathan Margulies, director of New York-based marketing consultancy Winterberry Group; Panelist Todd Greer, senior vice president of Little Rock, Ark.-based data solutions firm Acxiom Corp.; Panelist Matt O'Grady, executive vice president of media audience measurement for San Diego-based media research, ratings and data company The Nielsen Co.; Anas Osman, vice president of new cardmember acquisition for Riverwoods, Ill.-based Discover Financial Services; and Panelist Brad Terrell, vice president and general manager with Marlborough, Mass.-based data warehouse product and services company Netezza Corp. This industry has the opportunity to bring clarity to data practices, O'Grady says. The need for clarity is happening at the same time that Margulies noted that a larger percentage of the marketing data spend is on digital efforts—with the $2 billion decrease in marketing data spend this year, now at $8 billion, reflecting the economy and the move away from direct mail. So, with this increased attention on online data collection and the possibility of increased governmental regulation, Osman says marketers have to ensure that they're not the last ones to condemn the industry's bad actors. Bad data practices hurt the whole industry, he says. Greer says the bulk of the controversy surrounds those who link anonymous data to personally identifiable data. (He adds that his company uses personally identifiable data to build personas.) The issue is providing consumers notice, he says. "Bad marketing kills the channel," Greer says. "So we have to police ourselves." Panelists suggested educating consumers and the industry and having marketers follow self-regulating guidelines such as those proffered by the Direct Marketing Association. Osman says it might help for businesses to let consumers know that when companies learn more about them, that can save them money. For instance, Discover allows consumers to come onto the site and provide their names and the last four digits of their Social Security numbers to learn about their credit options and tailor the financial services to their needs. They can also alter offers they received via direct mail by visiting the site. "Our interest is to serve customers. It's not to creep them out." Most credit card issuers provide one offer to the world, Osman says. So Discover's first use of the data it collects goes toward enhancing the user experience. That said, he is more concerned about what data can do for the company than asking data "where did it grow up?" He says: "I don't care where the data comes from. If it's legal, I'm going to use it." So whether data originates from online or offline sources, Osman and Greer agree that it most importantly must be correct. "You (the consumer) haven't changed in the last two seconds," Osman says. The timeliness is less of a factor than accuracy unless timeliness is interlaced with relevancy. But when marketers understand consumer intent, Osman says, "then real-time is the name of the game." For instance, Terrell says, consumers may not like seeing a targeted advertisement urging them to take an action they've completed an hour before. Terrell says that 90 percent of his company's customers are "laser-focused" on using data quickly. "Your target audience—your target consumer—is constantly moving through a purchase funnel." So marketers have to act quickly to remain relevant. Greer says databases have to expand their information on consumer touchpoints. At the same time, Osman cautions that marketers shouldn't drink too much of the "online Kool-Aid." Rather than worrying so much, for instance, about only buying access to premium audiences, they might want to consider that remnant audiences have eyeballs, too. "What will likely occur is your remnant will be my premium."

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Live from DMA2010: Trends in Data Collection

Heather Fletcher

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Heather Fletcher