Niche data sources can be one of the most valuable resources available to B2B Marketers. The problem is knowing which ones are appropriate and deliver good ROI!

What do they offer over and above "Universe" Files I hear you ask? Well, how about.... targetted contacts (eg HR Director), not just "Senior Decision-makers", in-depth information (eg fleet size, number of/type of PC's etc), the fact that they are usually not over mailed/called and therefore remain much fresher, the list of positives is virtually endless.

Often combining niche and universe files is beneficial as well. It all depends on what you are trying to do.

Factors to consider when looking to use niche include how the data is collected (fully opted-in? subscription, controlled circulation or telephone verified - bascically if you are at all unsure it really is worth talking to an experienced buyer (list broker or data planner) to ensure you only use quality data, and not more junk lists.

The suitability of data sourced from a large ‘universe’ file or a niche list depends very much on the task in hand. There will always be a requirement for large files, not least for organisations embarking on large scale prospecting, or by companies needing a greater universe of data for analytical purposes. But niche data sets are also a powerful tool, especially for those brands with an understanding of the types of customers they should be targeting.

However, users of niche lists should do so with caution, and should ask plenty of questions of their supplier. By their nature niche lists may well be used by several brands – often direct competitors – so questions should be asked on the number of other users of a list and crucially on how often the data is refreshed and updated. If the supplier can verify that the data is fresh and relatively exclusive, niche data can be a powerful tool – bringing with it an element of targeting because of its focus on a specific customer segment.

Alongside niche data sits the growing market for bespoke data. Whilst slightly more expensive it benefits from being totally exclusive to the user, whilst being tailored to their data requirements, whether this is a particular customer type, or a specific element of data (anything from the prospect’s out of work hobbies to the days they work from home). We’re seeing more and more clients opting to develop bespoke data in this way, as a means of acquiring unique data on prospects which hasn’t been accessed by anyone else; something they can’t always guarantee with a niche list.

What is of vital importance whether using bespoke data, a larger universal list or niche files, is remembering the overarching principles of what B2B direct marketing is all about – namely targeting the right messages and communication at the right customers and prospects. There seems to be a trend currently for ‘window dressing’, with certain suppliers offering files and add-on services which promise much but don’t deliver, and even detract, from this basic yet fundamental need.

Without a doubt accurate niche data, if used appropriately by marketers, will invariably get better results than Generic/Universe data. For most marketers ‘better results’ means:
• improved response rates
• reduced wastage
• reduced risk of negative impact to brand perception
• stronger return on investment
So if pound for pound, niche data delivers a better return than generic data why is the market not swamped with thousands of specialist lists from hundred of niche data suppliers? Quite simply, most marketers won’t or can’t pay the premium needed to make the collation and sale of low volume data sets viable. And without premium prices, data suppliers will not invest the resources needed to build the niche files in the first place.

The end result is that many niche lists are ‘spin offs’ from other activities; activities that subsidise the market price of the niche list and in part this prevents the proliferation of a large number of niche lists.

This is then compounded by those marketers that still drive ‘EoS’ marketing strategies. Economy of Scale marketing is best described by the high volume, low response rate communications activities that our industry sponsored in the last century. Activities that ultimately led to public dissatisfaction, reducing returns and consequential imperatives to reduce costs – data included!

Of course it takes a brave marketer to put their head above the parapet, but with the economy in a downturn there has never been a better time to test alternatives to see how ROI can be bettered.
Ultimately, because there are so few niche lists available, most marketers will need to leverage Universe files to achieve an acceptable coverage of that element of their target audience which is not represented by niche data. In these circumstances, it is imperative that modern profiling techniques, using additional demographics, are applied alongside a robust testing regime if ROI is to be protected.

So in summary, niche and specialist lists are extremely valuable where they exist. Typically few marketers and suppliers are able to justify a ‘fair’ price for the data that allows for long term investment in the list, except where this is funded by other, core activities. Neither niche nor “spin off” lists provide complete coverage and so marketers must resort to the careful use of universe files to ensure they cover their target audiences.

Andrew Champion
Head of Client Partnerships
B2B Data Direct