NEW YORK, July 19 /PRNewswire-FirstCall/ -- The CMO Council's "Marketing Outlook 2007" report recently stated that 43.7% of marketing executives consider quantifying and measuring the value of marketing programs and investments as their top priority, 38.7% want their organizations to become more efficient, and 33.7% want greater customer insight and knowledge. The problem is marketing organizations are spending too little time and too much money on the one thing that will accomplish all three top goals -- their databases.
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"Errors in data collection, data management, processing and ETL, database design, data quality, vendor-to-vendor interfaces and vendor integration cost companies millions of dollars in IT expenses, database vendor fees, inaccurate data analyses, flawed customer insights, poor decisioning, and less effective marketing programs," says David Bernard, a managing director of DB Marketing Technologies (DBMT).
A company spending between $2 MM and $6 MM a year on marketing database management could cut those costs in half with a proper database audit and in so doing increase the value of their marketing programs and customer insights in a clearly quantifiable way, says Bernard. Further, companies that outsource their marketing databases could cut an additional $1 MM to $3 MM in migration costs when they change database vendors about every five years as a means of "fixing" vendors' inefficient infrastructures.
The bottom line: the marketing department could save between $5.5 MM and $17.5 MM over five years by performing regular database audits in that time.
Fig. 1: Marketing Database Management Cost Comparison over Five Years
Task Cost without Audit Cost with Audits
Database
Management:
Business-critical
Infrastructure $5,000,000 - $15,000,000 $5,000,000 - $15,000,000
Operating with
Database Errors &
Omissions $5,000,000 - $15,000,000 Minimal
Database Migration $1,000,000 - $3,000,000 $0
Regular Marketing
Database Performance
Audits (2) $0 $300,000 - $400,000
Marketing Database
Enhancements $0 $100,000
Total $11,000,000 - $33,000,000 $5,400,000 - $15,500,000
Source: DB Marketing Technologies
If you'd like to discuss this topic in greater detail with an analyst from DB Marketing Technologies, please contact:
Joanna Smith Bers
DB Marketing Technologies
(646) 387-0893
jbers@dbmt.com
Website: http://www.dbmt.com/
About DBMT
DB Marketing Technologies is a business insights management consulting firm specializing in customer analytics, data collection, database design, and database optimization. DB Marketing Technologies works closely with marketers, brand managers, market researchers, and other senior executives to improve customer insights through better analytics and data collection.
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DB Marketing Technologies
CONTACT: Joanna Smith Bers of DB Marketing Technologies,
+1-646-387-0893, jbers@dbmt.com
Web site: http://www.dbmt.com/
