Web Leads Require Better Data Quality Process
By Jack Schember, marketing manager, Melissa Data

The Internet has become a focal point for capturing priceless customer data across just about every industry. Web forms or other online applications provide the perfect setting for identifying qualified leads. But what if those leads are marred with botched street addresses, misspelled words, blank information fields or even made-up phone numbers? There is a world of difference between data and quality data.

Fraudulent information, lack of standardization and even keystroke errors stand between your company and reliable, complete and accurate customer information. Data quality is no longer an “enterprise only” issue, and basic mistakes at the critical point of entry can transform any company’s gold mine of customer data into costly missed business opportunities.


A Clean Start

High-traffic websites can generate thousands of new records monthly. Even well-trained data-entry staff can be inconsistent or make mistakes, but consider the scope of error possible when customers are asked to input their own information via Web forms. This level of lead generation demands a new sensibility in how companies of all sizes value data and protect collected information.

Cleaning and validating customer data in real-time during the entry process is most effective in ensuring that erroneous or malformed data does not infect a firm’s data warehouse and further, its entire base of customer-related applications.

“The foundation of our business is delivering relevant information – targeted, qualified, engaged prospects who have expressed interest in our customers’ products,” said Scott Perkins, vice president of operations for Connectify, a San Francisco-based direct marketing firm specializing in permission-based campaigns. Connectify manages lead generation for Fortune 1,000 firms by offering consumers coupons, tickets, subscriptions and other offers in exchange for valuable customer data such as email, mailing address or telephone number.

“Relevant data is most powerful when it’s clean and usable from the start; when we know we’re reaching the intended audience at step one,” continued Perkins. “Validating information as it’s received not only saves time and money, but also gives us a strategic business advantage as we can consistently provide high volume, high quality leads for our clients.”


The Impact of Bad Data

Research from the Data Warehousing Institute suggests that bad or dirty data is costing U.S. businesses $600 billion a year. And what seem like minor issues such as misspellings, typos or missing data fields all amount to dirty data. Costly returned mail and misdialed phone numbers are sure signs of bad information. Other losses can be less definable but even more expensive when you account for unrealized sales, lower response rates and customer complaints.

Any firm sending an expensive brochure or fulfillment package needs to be delivering to a real customer at a real address. Interactive marketing firms absolutely require accurate information – their clients do not pay for unverified or incorrect leads. Consider the dealer locator function on an automotive website or the service request form posted by an appliance manufacturer – both rely on address information to effectively fulfill the needs of customers and prospects. Insurance companies, lenders and financial institutions need a correct ZIP Code to provide an accurate quote. On a regulatory level, better data helps these groups more easily meet federal compliance requirements.

“Data is supposed to add value to business processes and customer relationships. Dirty data in fact subtracts value from a companywide range of operational and strategic business functions,” said Thomas Roth, systems manager-Web applications, at Day-Timers Inc., a leading provider of time management and organizational solutions. “Reaching out to a valued customer using a mis-keyed ZIP Code can result in an inappropriate offer or one that never even reaches the intended recipient. This kind of missed opportunity amounts to a strategic loss – as well as one for the bottom line.”

Day-Timers mails both catalogs and direct mail reminders to its customers, and validates all new and updated customer information received by phone and Web input. Roth says they consider it a strategic step to assure data quality and cleanse their steady stream of customer data, estimating they clean 7,000-10,000 records per month in batch updates and in real time.


You Can’t Afford Not To

Unchecked data can degrade rapidly, so it’s imperative to post a data quality sentry at the “virtual front door.” This sentry comes in the form of tools programmed directly into a company’s website, providing a powerful and effective guard against bad data.

Once considered a necessity for only the biggest companies, today’s data quality solutions are much more affordable, starting as low as the price of a laptop. No longer cost prohibitive, smaller companies are now able to tap into the competitive advantage of usable, quality data.

“We work hard to meet the needs of each of our customers, whether they are an individual professional or a large corporation. If they are reaching out to customers, they have a definitive interest in more than just lead generation but in maintaining quality data at every level. They expect that from us and it’s often the primary tool they use in building their business,” said Freddie Baird, executive vice president of QuantumDirect, a leading provider of integrated marketing and direct mail services. “Controlling sales, marketing and labor costs, effectively collaborating with vendors, and personalizing customer outreach are not purely enterprise business issues. These are critical activities in any company’s growth and ultimate success.”


Flexible but No Longer Optional

Data quality tools verify, correct and enhance information as it’s entered on the Web. Addresses can be CASS certified and standardized to meet United States Postal Service specifications. Carrier routes and delivery points can be appended for faster, more efficient deliveries. Telephone area code and prefix combinations are validated and standardized. Even ZIP Code and area codes can be validated in combination to prevent fraud; they should match geographically if input correctly. Vulgar words can be identified and flagged for elimination.

Corrected and verified customer information can also be enhanced to provide even greater value to marketing efforts. Names can be parsed into multiple segments allowing a clearer view of customers’ professions, titles or genders. Demographic information, time zones, congressional districts, even latitude and longitude can be appended to accommodate retail applications such as dealer locator options.

Will your customer be asked to correct their own entry? Or will you look at data in batch mode and make corrections and enhancements before feeding information downstream to other customer-centric applications? That depends entirely on how you want to deal with both your data and your customer.

Mercury Insurance uses address validation to support website requests for insurance quotes; geocoding helps their Web users find the nearest agent. Mercury Insurance is the leading independent agency writer of automobile insurance in California and has been one of the fastest growing automobile insurers in the nation – adding more than 1,000 drivers daily to its database of over 1.3 million auto policyholders.

“It can be difficult to quantify the cost of bad data and requires examining losses in terms of profit, costs and missed opportunities over the lifetime of a customer relationship,” said Loki Efaw, senior IT manager for Mercury Insurance. “The winners believe that quality customer data is a strategic asset with powerful and long-term commercial benefits.”


Winning the Battle for Data Quality

Clean, verified data adds demonstrable business value– driving everything from lower postage to increased brand respect from happier, more loyal customers.

The ubiquity of websites and their potential to do much more than merely provide information has fueled the growth of Internet-based data collection. And while this data collection function has become a business imperative, it’s more important than ever that the data obtained is correct and usable