Weighing In on the Catalog Co-op Databases '06
Much of that data, such as hobbies, occupations and ethnicity is self-reported. More data, such as summarized credit information, automobile ownership status and subscription data, comes from Experian's other divisions. Wright says that these types of data enable Z-24 to identify names that often aren't mailed when using transactional recency, frequency and monetary (RFM) models.
Z-24 uses that data not only for its regular models, but also in a list evaluation product that it recently made available to catalogers. Called VeriScore, the product optimizes all of the lists that catalogers mail to — including rental lists, exchanges and other co-ops — by ranking the potential value of each name, Wright says.
Known multibuyers are ranked highest, due to their obvious propensity to buy. Single and two-time buyers are ranked based on the variety of statistics in Experian's database. Potential lifetime value is established based on credit data, auto market statistics, and several hundred other criteria, Wright reveals.
With that knowledge, mailers can determine which nonmultibuyers have the highest potential for return on investment. "In the past, if you thought you could get any value out of the singles, you had to mail the entire singles universe, because you didn't know who would be good," Wright says. "VeriScore can identify the singles that will be profitable before you put them in the mail."
This marketing co-op distinguishes itself by including publishers, online marketers and merchants, club and continuity marketers and catalogers in its database, according to information from the i-Behavior Web site. (i-Behavior executives didn't return calls for comment by press time.) The company claims that this gives a more complete view of cross-channel customer behavior.
Testing is imperative, especially for catalogers, such as the Potpourri Group, which are members of most of the co-ops, Webb points out. In Potpourri's case, the company always is looking for new incremental names to mail. And as long the database can provide new names, the relationship is worthwhile.
- Lafayette, Colo.