Business Data Lists

Using third-party business data can cut information management costs.

Business data is a vital part of any successful marketing campaign, but as the amount of data companies hold increases, managing it can become problematic.  The government has a huge array of rules and regulations in place relating to the safeguarding of business data, and guaranteeing compliance can be tricky - unless of course you opt for third-party business lists.

Picking a reputable business list provider takes much of the pressure off, as the accuracy, relevance and the quality of data being used is already accounted for.  But as well as ensuring compliance, vetted business data can help companies reduce the cost of maintaining useful databases as they don't have to sift through information in house - they can simply outsource the responsibility and get down to more important tasks - such as business to business marketing.

What are the potential pitfalls of in-house business lists?

Data losses and thefts are a common problem for businesses - and something that has been in the press a lot of late. Misplacing information can be costly - both financially and to a business's reputation - and the majority of firms, particularly small and medium-sized enterprises, simply don't have the expertise to handle huge amounts of company data safely and securely. Since data loss can have huge financial implications - large enough to put a firm out of business if legal action is successful - it makes sense to leave the compiling of business lists to the experts. Compiling your own business lists has a huge number of other risks associated with it - risks that can easily be carried by a third-party data provider who knows the legal landscape and can conform to government rules and regulations.

Another problem is that as business lists grow, they can become unwieldy. Keeping all that information up to date can be a full-time job in itself. Outsource this task and you can have accurate information at your fingertips without having to do any of the associated leg work. Data accuracy, as well as making marketing campaigns all the more successful, is also legally important. So by buying in data from a reputable provider you can avoid a myriad of potential problems. Accurate data will, for example, reduce the number of email messages that bounce because your address list is out of date. It will also prevent messages from landing in the wrong person's inbox, which can undermine a company's reputation but also result in them being blocked by recipients and reported to ISPs as sources of spam mail.

The changing regulatory landscape makes third-party expertise essential

One of the things about the marketing industry that will never change is that it is constantly in a state of flux. New technologies, new techniques, new platforms and new regulations will always be cropping up. And businesses often struggle to stay on top of the latest developments. Often it is a rule change pushed through by government or new guidance published by industry bodies like the Direct Marketing Association (DMA) that will change the way in which business lists can be used. So it makes sense to use data providers like thomsonlocal.com - which is a registered member of the DMA - as a source of business data. That way you know that the information you buy is compliant with all the latest regs.

One example is the introduction of the midata initiative in April of this year, which means companies have to give people easy access to the information they store about them. Within three years all firms will have to abide by these rules and many may find it difficult. But not those who have a reputable third-party organisation looking after all their important business data.