B-to-B Prospecting Data Just Keeps Getting Better

The most reliable and scalable approach to finding new B-to-B customers is outbound communications, whether by mail, phone or email, to potential prospects, using rented or purchased lists. B-to-B marketers typically select targets from prospecting lists based on such traditional variables as industry, company size and job role, or title. But new research indicates that B-to-B prospecting data is much more detailed these days, and includes a plethora of variables to choose from

The most reliable and scalable approach to finding new B-to-B customers is outbound communications, whether by mail, phone or email, to potential prospects, using rented or purchased lists. B-to-B marketers typically select targets from prospecting lists based on such traditional variables as industry, company size, and job role or title. But new research (opens as a pdf) indicates that B-to-B prospecting data is much more detailed these days, and includes a plethora of variables to choose from—for refining your targeting, or for building predictive models—to pick your targets even more effectively.

My colleague Bernice Grossman and I recently conducted a new study (opens as a pdf) indicating that B-to-B marketers now have the opportunity to target prospects more efficiently than ever before. In fact, you might say that business marketers now have access to prospecting data as rich and varied as that available in consumer markets.

To get an understanding of the depth of data available to B-to-B marketers for prospecting, we invited a set of reputable vendors to open their vaults and share details about the nature and quantity of the fields they offer. Seven vendors participated, giving us a nice range of data sources, including both compiled lists and response lists.

We provided each vendor with a set of 30 variables that B-to-B marketers often use, including not only company size and industry, but also elements like the year the company was established, fiscal year end, Fortune Magazine ranking, SOHO (small office/home office) business indicator, growing/shrinking indicator, and other useful variables that can give marketers insight into the relative likelihood of a prospect’s conversion to a customer. We learned that some vendors provide all these data elements on most of the accounts on their files, while others offer only a few.

We also asked the participating vendors to tell us what other fields they make available, and this is where things got interesting. In response to our request for sample records on five well-known firms, the reported results included as many as 100 lines per firm. Furthermore, two of the vendors, Harte-Hanks and HG Data, supply details about installed technology, and their fields thus run into the thousands. The quantity was so vast that we published it in a supplementary spreadsheet, so that our research report itself would be kept to a readable size.

Some of the more intriguing fields now available to marketers include:

  • Spending levels on legal services, insurance, advertising, accounting services, utilities and office equipment (Infogroup)
  • Self-identifying keywords used on the company website (ALC)
  • Technology usage “intensity” score, by product (HG Data)
  • Out-of-business indicator, plus credit rating and parent/subsidiary linkages (Salesforce.com)
  • Company SWOT analysis (OneSource)
  • Whether the company conducts e-commerce (ALC)
  • List of company competitors (OneSource)
  • Biographies of company contacts (OneSource)
  • Employees who travel internationally (Harte-Hanks)
  • Employees who use mobile technology (Harte-Hanks)
  • Links to LinkedIn profiles of company managers (Stirista)
  • Executive race, religion, country of origin and second language (Stirista)

Imagine what marketers could do with a treasure trove of data elements like these to help identify high-potential prospects.

Matter of fact, we asked the vendors to tell us the fields that their clients find most valuable for predictive purposes. Several fresh and interesting ideas surfaced:

  • A venture capital trigger, from OneSource, indicating that a firm has received fresh funding and thus has budget to spend.
  • Tech purchase likelihood scores from Harte-Hanks, built from internal models and appended to enhance the profile of each account.
  • A “prospectability” score custom-modeled by OneSource to match target accounts with specific sales efforts.
  • PRISM-like business clusters offered by Salesforce.com (appended from D&B), which provide a simple profile for gaining customer insights and finding look-alikes.
  • “Call status code,” Infogroup’s assessment of the authenticity of the company record, based on Infogroup’s ongoing phone-based data verification program.

We conclude from this study that B-to-B prospecting data is richer and more varied than most marketers would have thought. We recommend that marketers test several vendors, to see which best suit their needs, and conduct a comparative test before you buy.

Readers who would like to see our past studies on the quality and quantity of prospecting data available in business markets can access them here. Bernice and I are always open to ideas for future studies. We welcome your feedback and suggestions.

A version of this article appeared in Biznology, the digital marketing blog.

Building Your B-to-B Marketing Database

The single most important tool in B-to-B is, arguably, the marketing database. Without a robust collection of contact information, firmographic and transactional data about customers and prospects, you are at sea when it comes to customer segmentation, analytics and marketing communications of all sorts, whether for acquiring new customers or to expand the value of existing customers. In fact, you might call the database the “recorded history of the customer relationship.” So what goes into a marketing database? Plent 

The single most important tool in B-to-B is, arguably, the marketing database. Without a robust collection of contact information, firmographic and transactional data about customers and prospects, you are at sea when it comes to customer segmentation, analytics and marketing communications of all sorts, whether for acquiring new customers or to expand the value of existing customers. In fact, you might call the database the “recorded history of the customer relationship.” So what goes into a marketing database? Plenty.

First, let’s look at the special characteristics of B-to-B databases, which differ from consumer in several important ways:

  1. In consumer purchasing, the decision-maker and the buyer are usually the same person—a one-man (or, more likely, woman) show. In business buying, there’s an entire cast of characters. In the mix are employees charged with product specification, users of the product and purchasing agents, not to mention the decision-makers who hold final approval over the sale.
  2. B-to-B databases carry data at three levels: the enterprise or parent company; the site, or location, of offices, plants and warehouses; and the multitude of individual contacts within the company.
  3. B-to-B data tends to degrade at the rate of 4 percent to 6 percent per month, so keeping up with changing titles, email addresses, company moves, company name changes-this requires dedicated attention, spadework and resources.
  4. Companies that sell through channel partners will have a mix of customers, from distributors, agents and other business partners, through end-buyers.

Here are the elements you are likely to want to capture and maintain in a B-to-B marketing database.

  • Account name, address
    • Phone, fax, website
  • Contact(s) information
    • Title, function, buying role, email, direct phone
  • Parent company/enterprise link
  • SIC or NAICS
  • Year the company was started
  • Public vs. private
  • Revenue/sales
  • Employee size
  • Credit score
  • Fiscal year
  • Purchase history
  • Purchase preferences
  • Budgets, purchase plans
  • Survey questions (e.g., from market research)
  • Qualification questions (from lead qualification processes)
  • Promotion history (record of outbound and inbound communications)
  • Customer service history
  • Source (where the data came from, and when)
  • Unique identifier (to match and de-duplicate records)

To assemble the data, the place to begin in inside your company. With some sleuthing, you’ll find useful information about customers all over the place. Start with contact records, whether they sit in a CRM system, in Outlook files or even in Rolodexes. But don’t stop there. You also want to pull in transactional history from your operating systems-billing, shipping, credit—and your customer service systems.

Here’s a checklist of internal data sources that you should explore. Gather up every crumb.

  • Sales and marketing contacts
  • Billing systems
  • Credit files
  • Fulfillment systems
  • Customer services systems
  • Web data, from cookies, registrations and social media
  • Inquiry files and referrals

Once these elements are pulled in, matched and de-duplicated, it’s time to consider external data sources. Database marketing companies will sell you data elements that may be missing, most important among these being industry (in the form of SIC or NAICs codes), company size (revenue or number of employees, or both) and title or job function of contacts. Such elements can be appended to your database for pennies apiece.

In some situations, it makes sense to license and import prospect lists, as well. If you are targeting relatively narrow industry verticals, or certain job titles, and especially if you experience long sales cycles, it may be wise to buy prospecting names for multiple use and import them into your database, rather than renting them serially for each prospecting campaign.

After filling in the gaps with data append, the next step is the process of “data discovery.” Essentially this means gathering essential data by hand—or, more accurately, by outbound phone or email contact. This costs a considerable sum, so only perform discovery on the most important accounts, and only collect the data elements that are essential to your marketing success, like title, direct phone number and level of purchasing authority. Some data discovery can be done via LinkedIn and scouring corporate websites, which are likely to provide contact names, titles and email addresses you can use to populate your company records.

Be thorough, be brave, and have fun. And let me know your experiences.

A version of this article appeared in Biznology, the digital marketing blog.

But Your Data Is Fine, Trust Me …

Data … that great big, hairy gorilla in marketing departments all across the globe. We have Legacy Data, Subscriber Data, Third-Party Data, Business Data, Personal Data, Master Data, Sales Data, Reference Data, Privacy Data, etc., etc., ad nauseum. Now, during the last few years, the latest and greatest—Big Data and its cousin SoMoBi (SocialMobileBig) data have entered the fray enough to make everyone’s head spin.

Data … that great big, hairy gorilla in marketing departments all across the globe. We have Legacy Data, Subscriber Data, Third-Party Data, Business Data, Personal Data, Master Data, Sales Data, Reference Data, Privacy Data, etc., etc., ad nauseum. Now, during the last few years, the latest and greatest—Big Data and its cousin SoMoBi (SocialMobileBig) data have entered the fray enough to make everyone’s head spin.

No matter what you want to call it though, it just boils down to simple information. Information all you marketers crave. Information about your customer, your prospects, your products, your competitors and the trends that will steer you to hitting those numbers in the next and future fiscal quarters.

There is just so much of it, you say? No one here knows what to do with it, I hear? Every department controls a piece of it and refuses to share, is the excuse?

Maybe true. But, with a little time, effort and—of course—some of those ever-scarce budget dollars, you can create an environment where the grain can be separated from the chaff to build a healthy and robust universal silo of data which will benefit and streamline the efforts of every area of your organization efficiently and profitably.

There is no cookie-cutter data model for the business needs of every organization, despite the host of plug-and-play database tools and marketing automation processes available today. The information that makes your business research and marketing program successful is likely to be much different from what works for even your closest competitor.

At the core, your primary contact data for customers and prospects needs to be acquired and maintained as strictly as possible. My good friend, Bernice Grossman, along with fellow direct marketing legend Ruth Stevens, have a whitepaper I always refer to when providing guidance to anyone striving to establish or reorganize the variety of information that quickly begins to accumulate from different sources, in multiple disparate formats. Written as a guide for B-to-B organizations, the reasons and methodologies hold true for B-to-C. Even with the changes in data availability and the explosive growth of social data availability in the industry during the last few years, the white paper addresses the core data requirements for contact and communication.

Outside of the core basics of data needed to contact, track and segment your data pool, determining exactly what it is that gives you the edge is Priority One in deciding what else you must have available to make decisions. In every conversation or discovery session around data and database design within a CRM, the persistent desire that comes up is wanting a “full 360-degree view of my customers.” While that is possible with simply the basic contact information you have as the core of your data, along with whatever historical transactions available to provide RFM, most users expect a much deeper dive. At the more extreme illustration of designing your data around the optimal user experience, you have this infographic from Visual.ly that has been making the social media rounds. While extensive, the many comments on the sites where it has been posted point to even more data sources being needed to be all-encompassing.

If you, and your business goals, are like most, your time and budget is more likely going to place your need somewhere between the most basic and the most extravagant of these two extremes.

Discovering your own sweet spot is where the best value proposition is to create and maintain profitability for your business. That is where I hope to focus in the posts that will follow on a regular basis. I will be sharing points of interest, ideas, solutions and strategies for identifying the most accurate and efficient steps to take in planning the housing and process flow of all the data you need for success … with a dose of irreverence sprinkled in liberally along the way.