5 questions retail marketers should ask before choosing a new data provider

Mastering data is critical for retailers, particularly those serving specialty areas. But in an economy with 260 million smartphone users cumulatively creating billions of new data points every day, the challenge for retail marketers isn’t obtaining information—it’s translating that data in ways proven to increase sales and create long-term loyalty.

Scores of companies credibly claim to have excellent predictive data, but the real challenge is identifying true innovators who offer incremental value versus those selling you what you already own. Below are five questions to ask prospective marketing data solution partners to separate the pretenders from the experts—and find the right one for you.

What to ask

1. Do you source data from other providers?

Rather than relying on one or two sources, reputable information purveyors will source data from multiple providers to generate the best possible leads. This intelligence helps to identify consumers earlier and minimizes the amount of time between the trigger and the marketing message.

This is especially important for the retail industry, where there are multiple providers of excellent data on “shopping habits.” No single provider can credibly claim to have a monopoly, and the most successful campaigns emanate from an extensive, multi-sourced database.

2. Can you provide proof of your data’s performance?

Case studies are a helpful predictor of a data set’s value if the provider is willing to share them. If a case study isn’t available, ask for a client reference.

In general, the more a provider is willing to share about the data and analysis they’re selling, the more confident they are in performance. This “transparency test” is an important gauge of any potential partner.

3. Can you determine what data I need vs. what I already have?

When you understand what somebody is trying to sell—and what you already have—it gives you greater negotiating power. For example, looking at the homeowner audience, a provider might try to sell you a data file that identifies new movers, new homeowners, pre-mover leads and newly engaged couples, but you may only need a subset of those identifiers.

Don’t shy away from asking how recommended additional data can fuel marketing campaigns and what results to expect.

4. Will you provide a timestamp for the data?

Timing is everything when it comes to data. Can your provider certify information has the right timestamp identifying when the life event occurred—and when they first became aware? This is especially important when buying data for time-sensitive moments, like marketing furniture and appliances to upcoming movers and new homeowners.

At Deluxe, we’ve found the average response rate of a campaign decreases by 40.5% in week three compared to week one after a trigger event, such as someone putting their house on the market or closing on a new home. On the other hand, it’s wiser to wait a bit to offer nursery room staples to newlyweds rather than targeting them as soon as they apply for a marriage license. A few weeks can make the difference between success or failure.

5. Does your data distinguish the audience’s preferred communication channel?

Successful marketing is a combination of reaching the desired audience as close to the trigger event as possible and simultaneously connecting with them across multiple channels, maximizing reach online and off. We’ve found that a cross-channel approach provides a 15% lift in response rate, and 60% of marketing respondents claim combining digital and direct mail increases ROI. When data providers identify the most effective method for each consumer, retail marketers increase the efficacy of their life event marketing.

In conclusion: Strategic counsel is paramount

With the advent of big data and artificial intelligence, retailers have access to a greater breadth and depth of customer data than ever before—but must make sense of it quickly to turn that data into actionable campaigns that drive business outcomes. When you need customized data that will generate ongoing quality leads, the best option is to partner with a supplier that can tailor recommendations based on your exact business need. In a world with too many choices, strategic counsel is a most valuable resource.