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Updating information: comparing methods


As soon as you’ve acquired an information base, it starts to lose its value, and update management becomes a challenge.
What you have to keep in mind is that, whatever your strategy, even if you’ve decided to do nothing, it will involve a cost. So it's up to you to opt for the best strategy.


Method 1- Not updating your database.

Direct internal cost = nil
Direct external cost = nil

Direct marketing cost: major
• Sending useless mail shots to companies that have disappeared = Mailing cost * number of useless items mailed
• Sending useless mail shots to companies that have moved = Mailing cost * number of useless items mailed
• Sending useless mail shots to companies that have changed business = Mailing cost * number of useless items mailed
• Sending useless mail shots to companies that have changed contact = Mailing cost * number of useless items mailed
• Sending useless mail shots to contacts who have changed position = Mailing cost * number of useless items mailed
• Sales team's time spent calling nonexistent accounts, finding the right contact again, etc..
After one year, all these costs correspond on average to more than 25% of the direct marketing budget and to 5-10% of marketing time.
Indirect internal cost: Extremely high.
• Loss of business opportunities with potential partners. This is due to the business that you've lost because your offer was not present / visible for contacts in need of your product.
• Loss of business opportunities with new partners. This is due to the business you've lost because you did not locate new partners.
These losses correspond to several % points of your annual turnover.

Permanence: None
Quality: Decreasing

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Method 2- Updating your database in house.

Direct internal cost = Variable
Direct external cost = nil

Direct marketing cost: low
• Telephone cost
• Purchase of complementary data (e.g., TO, business registration number.)
Indirect internal cost: major
• Loss of business opportunities with potential partners. This the business that you’ve lost because your offer was not present / visible for contacts in need of your product.
• Loss of business opportunities with new partners. This the business you’ve lost because you did not locate new partners.
Several % points of your annual TO

Permanence: Unpredictable, depends on your budgets and available resources.
Quality: Unpredictable Depend on the level of training, experience and skills of the individual.

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Method 3- Outsourcing database updates, non-compuBase

Direct internal cost = nil
Direct external cost = Depends on provider

Direct marketing cost: low
• Telephone cost
• Purchase of complementary data (e.g Turnover)
Indirect internal cost: major
• Loss of business opportunities with new partners. This is the business you’ve lost because you did not locate new partners.
Several % points of your annual TO

Permanence: depends on your budgets and the provider's professionalism.
Quality: Unpredictable Depending on the provider; will often be limited to updating existing data.

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Method 4- Outsourcing database updates to compuBase.

Direct internal cost = nil
Direct external cost = Generally 65% of the initial budget

Direct marketing cost: Nil
Indirect internal cost: Nil

Permanence: Very strong : even if you interrupt your contract, the base continues to be maintained, and contract renewal will be all that much easier. A change in strategic target does not mean you have to buy a complete base again but just the supplement; you will thereby  avoid merge and purge costs.
Quality: Very high : regular addition of new relevant information, natural expansion of targets.
 

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