Lists: Ten Things to Consider About Consumer Prospect Databases

5. Eliminating duplicates: “Unlike list processing services,” she said, “we don’t eliminate duplicates in a database.” Because of that, she noted, it’s important to combine and aggregate instances of the same individuals or households in these databases.

6. Hosting data: Question whether or not to send your data to a competitor to host. Determine whether you should seek to avoid such redundant processes and costs as hardware, staff, data management, and software licenses and access. Above all else, take into consideration if you have the need to outsource your customer database as well.

7. Contracts/agreements: In factoring these into the equation, consider that usage terms can force change on the list renter-owner relationship, Gray noted. In determining a list rental price, consider fair market value and payment structure, as well as industry-recognized broker commissions.

8. Net name agreements: Take into consideration varying levels of list rental agreements and tracking requirements, such as gross, net, net-net, exchanges and additional costs for added data. Also, consider the impact on list rental revenue when marketers are out of your market.

Some marketers have ceased doing list exchanges. “They’re saying it’s too hard to figure out in the prospect database environment,” she said. “They’re kind of playing hardball in some regards.”

What’s more, in some businesses (eg: the catalog business) with a lot of multi-titled and multibranded companies, the lists are part of corporate-wide systems and not single business units.”It’s maybe five business units coming together,” she pointed out. “One brand may use 100 lists, another may use 40. And maybe 10 of those lists overlap. So to get cross-brand circulation and what’s required to be profitable and healthy, it’s a pretty daunting thing. You’re taking it outside of just brand negotiation and starting to do it with multi brands across the corporation.”

So this is potentially pushing list brokers to change some of the ways they’re working with clients when these databases become ways to support acquisition work, she added.