Combating Customer Churn Using Data

Combating Customer Churn Using Data

Retaining customers is more crucial than ever. A recent report highlights key strategies for reducing customer churn, emphasising the importance of leveraging appended data to enhance customer records. This article will summarise the report’s findings and explore how appending data and enhancing it can help businesses maintain a loyal customer base.

The Report’s Findings

Summary of the Report’s Findings

Data-driven marketing strategies are a top priority for UK professionals in the coming year, with nearly two-thirds identifying first-party datasets as a key goal for 2025. The focus is primarily on using customer data for retention rather than acquisition, with reducing churn being the most pressing issue. This is one of the key findings from the fifth iteration of AudienceXpress’ Streaming TV Uncovered study, conducted by CoLab Media Consulting.

The report reveals a positive outlook for marketing budgets, with optimism increasing for the second consecutive year. UK companies are leading their European counterparts in gathering customer data, driven by the uncertainty around things like third-party cookies and the fragmented audience identity ecosystem. This push aims to increase loyalty through more targeted and informed advertising.

Key insights include:

  • Increased Use of Data Clean Rooms: About 30% of UK marketers plan to use data clean rooms, like The Ark’s JetStream, to share and append aggregated first-party data in 2025
  • Focus on Campaign Effectiveness: Investing in campaign effectiveness measurement is a priority for a third of marketers
  • Streaming and Connected TV Investment: Nearly half of UK marketers want to increase spending on streaming and connected TV, with significant interest in free, ad-supported TV channels

The Power of Enhanced First-Party Data for Reducing Customer Churn

Appending data to existing customer records can provide businesses with a wealth of information that helps in understanding and anticipating customer, and ultimately the power to keep them as customers.

Here are some ways in which appended data can be beneficial:

  1. Understand when your customer is moving home: The Ark’s Mover Alerts notify companies when a customer has put their house up for sale or rent. This information is crucial as it allows businesses to proactively reach out to customers offering relevant products or services that cater to their new circumstances and retain their business
  2. Understand where and how your customer lives: The Ark’s UK Household File includes over 100 variables about a customer’s property, such as house type, total income, and propensity to adopt Net Zero products. This detailed information helps businesses tailor their marketing strategies and product offerings to better match customer profiles, increasing engagement and satisfaction
  3. Data Hygiene: Keeping first-party data clean is essential for effective customer relationship management. Removing deceased customers and those who have moved away ensures that communications are directed to the right individuals, reducing wasted resources and improving the accuracy of customer insights and retention statistics.

Be Proactive

By appending data such as Mover Alerts and the UK Household File to existing customer records, businesses can gain a deeper understanding of their customers and respond more effectively to their needs. This proactive approach not only helps in reducing customer churn but also enhances overall customer satisfaction and loyalty.

 

By Steve Clarke – Commercial Director at The Ark

Get in touch to speak to us about reducing your customer churn today

The Importance of Maintaining Customer Data: A Proactive Approach to Deceased and Gone Away Suppression

The Importance of Maintaining Customer Data: A Proactive Approach to Deceased and Gone Away Suppression

In today’s data-driven world, maintaining accurate and up-to-date customer data is crucial for any organisation. Not only does it enhance operational efficiency, but it also fosters trust and loyalty among customers. One critical aspect of data maintenance is the suppression of deceased and gone away records. This blog explores the importance of maintaining customer data, the benefits of deceased and gone away suppression, and how organisations can leverage in-situ data cleansing within their own cloud platforms.

Why Maintaining Customer Data Matters

Identity resolution is not just a feature; it’s a necessity for the success of data cleanrooms. It allows companies to:

1) Enhanced Customer Experience: Accurate data ensures that communications are relevant and timely, enhancing the overall customer experience. Misaddressed communications can lead to frustration and a negative perception of the brand.

2) Regulatory Compliance: Many industries are subject to strict data protection regulations. Maintaining accurate data helps organisations comply with laws such as GDPR, which mandate the proper handling of personal information.

3) Cost Efficiency: Clean data reduces the costs associated with undeliverable mail, incorrect billing, and wasted marketing efforts. It also minimizes the resources needed to manage and rectify data errors.

4) Improved Decision Making: Reliable data is the foundation of effective decision-making. It enables organisations to analyse trends, forecast demand, and tailor their strategies to meet customer needs.

The Role of Deceased and Gone Away Suppression

1) Respect and Sensitivity: Sending communications to deceased individuals can be distressing for their families. Suppressing these records demonstrates respect and sensitivity, preserving the organisation’s reputation.

2) Data Accuracy: Removing outdated records ensures that the database reflects the current customer base, leading to more accurate analytics and insights.

3) Fraud Prevention: Deceased records can be exploited for fraudulent activities. Suppressing these records helps mitigate the risk of identity theft and fraud.

4) Resource Optimisation: By eliminating gone away records, organisations can focus their resources on engaging with active customers, improving the efficiency of marketing and customer service efforts.

Benefits of In-Situ Data Cleansing in the Cloud

In-situ data cleansing refers to the process of cleaning and maintaining data within the organisation’s own cloud platform. This approach offers several advantages:

1) Real-Time Updates: In-situ cleansing allows for real-time updates, ensuring that the data is always current and accurate. This is particularly important for dynamic customer databases.

2) Enhanced Security: Keeping data within the organisation’s cloud platform reduces the risk of data breaches and unauthorised access. It ensures that sensitive information is handled in compliance with security protocols.

3) Cost Savings: In-situ cleansing eliminates the need for third-party data cleansing services, reducing costs associated with data transfer and external processing.

4) Customisation: Organisations can tailor the cleansing process to their specific needs, incorporating custom rules and algorithms that align with their business objectives.

5) Scalability: Cloud platforms offer scalable solutions that can grow with the organisation. In-situ cleansing ensures that data management processes can adapt to increasing volumes of data without compromising performance.

Proactive Data Management: A Strategic Imperative

Proactive data management is not just about maintaining accuracy; it’s about anticipating and addressing potential issues before they arise. By implementing in-situ data cleansing and deceased and gone away suppression, organisations can:

  • Build Trust: Demonstrating a commitment to data accuracy and customer respect fosters trust and loyalty.
  • Enhance Efficiency: Streamlined data processes lead to more efficient operations and better resource allocation.
  • Drive Growth: Accurate data supports informed decision-making, enabling organisations to identify opportunities and drive growth.

And finally…

The Ark are well placed to help organisations address the problem of deceased and gone away suppression with our National Deceased Register and Re-mover Gone Away suppression files.  These datasets can also be delivered proactively through our JetStream data cleanroom solution, providing a cloud-based in-situ solution for organisations looking to maintain their customer data.

Take a look at JetStream in our video:

The takeaway? Maintaining customer data is a strategic imperative for modern organisations. By proactively managing data through in-situ cleansing and deceased and gone away suppression, businesses can enhance customer experience, ensure compliance, and optimise resources. Embracing these practices within their own cloud platforms positions organisations for long-term success in an increasingly data-centric world.

– Martin Jaggard – Director at The Ark

Talk to us about your data today

The Ark passes rigorous independent data compliance audit by the DMA

The Ark passes rigorous independent data compliance audit by the DMA

Martin Jaggard, Managing Director of The Ark 

Oxfordshire-based data specialist – The Ark – has been accredited after passing the Data & Marketing Association (DMA) rigorous and thorough compliance audit process. Membership of the DMA is an endorsement that The Ark is a dedicated and responsible marketer.  

The Ark – which was created in 2003 – is the market-leader in helping companies of all sizes combat identity fraud and ensuring that they comply with legal regulations including GDPR. Its services include the National Deceased Register (NDR) – the country’s most accurate and reliable deceased identification file and Re-mover Goneways – which captures over 90% of all movers in the UK. 

All DMA members are subjected to a lengthy and evidence-driven process before receiving accreditation.  In the case of The Ark, it looked for evidence of its understanding of GDPR and how it was applied to the creation of identification files. It also focussed on the due diligence The Ark undertook for each data source it uses. All data companies offering PII data have to undergo this audit once every 3 years. The DMA comprises the Data and Marketing Association and the Institute of Data & Marketing (IDM) and represents over 1,000 members across the UK’s data and marketing landscape.

“The updated compliance process ensures that DMA Members continue to work to the highest standards, and that Membership remains a badge of accreditation that can be trusted in a data-driven world” commented DMA Managing Director, Rachel Aldighieri.

The Ark Managing Director, Martin Jaggard is delighted to be recognised by the DMA “Identity fraud is the UK’s fastest growing crime and with our existing products and those in development, we are in pole position to help our clients combat the threat. We are pleased that the DMA has recognised The Ark as dedicated, responsible marketers. We have worked through the COVID-19 pandemic to ensure that our clients have received faultless service and look forward to their, and indeed our continued success for the rest of this year and into the next”.

Is poor data sabotaging your campaign performance?

Is poor data sabotaging your campaign performance?

Complacency when it comes to data suppression could be sabotaging your campaign performance and may also derail your GDPR compliance plans.

That’s the reality facing even those marketers who already use deceased and gone-away suppression services but who do not regularly evaluate their providers and put the health of their databases to the test.

Holding out-of-date records (whether knowingly or not) is a clear infringement of several key areas of GDPR, not least the basic principle of data accuracy. What’s more, you need to demonstrate compliance – and that means being able to prove the effectiveness of your suppression solution.

So what are the starting points to creating a watertight suppression strategy?

Guard against inertia

Despite the widely adopted practice of supplier switching in the consumer arena to reduce costs or improve services, there is often much resistance within businesses. This may be because the decision-makers are also responsible for implementation and it is simply easier to stick with the status quo rather than tinker with something that is deemed to be working. Sometimes there is also the perception that change would cause unnecessary upheaval to the wider IT systems in which suppression is embedded.

Whatever the reason, relying on outdated legacy suppression files will certainly result in deceased and goneaway data slipping through the net.

Your chosen suppression files should be evaluated regularly to make sure they are doing their job – reducing campaign wastage, providing the building blocks for advanced data insight and keeping you compliant.

Be rigorous in supplier management

In our experience, much of the procurement decision-making in suppression is still reliant on human judgement rather than an objective data evaluation. But GDPR (and the threat of large fines) is likely to change this.

Each organisation needs to have a structured approach to supplier evaluation, selection and review. This should be underpinned by clearly defined criteria and well communicated processes, so that you can make evidence-based decisions that will stand up to scrutiny. Indeed the evaluation in itself would provide valuable supporting evidence to the ICO that you are taking proactive steps to keep your databases as clean and compliant as possible.

Don’t put all your eggs in one basket

Every supplier of suppression data should be included in your evaluation. This is because relying on a single file rarely identifies all known deceased, and it is simply wrong to claim otherwise. Although there is a degree of overlap, each file is created from different data sources and you need to understand how they vary in terms of data provenance, verification method, speed to market and proportion of unique records.

Take the example of one of the country’s largest general and life insurers. They recently evaluated our flagship product, the National Deceased Register (NDR), and found 89,000 deceased customers that had gone undetected by the two deceased suppression files they had been relying on for decades. This clearly illustrates the risks of relying on legacy suppression files without evaluating newer entrants in the market.

Plus, suppression services are evolving with new, innovative products coming on to market so keeping on top of the latest developments will ensure you remain ahead in data strategy.

Beware ‘biggest is best’ claims

One of the most misleading selling points from data suppliers is file size. We are proud to say that a recent independent evaluation of the main files on the market revealed the NDR as having the highest proportion of unique records despite being the smallest file.

So why does file size vary so dramatically? Some include records that date back to the mid-1980s, whereas we have chosen only to include deaths notified from the turn of the century. It is our view that older data is redundant because any organisation that has licensed suppression files in the past will already have flagged or deleted these customers. Also, some files are inflated by the inclusion of individuals who are thought to have died but where further verification is necessary. We stringently check our data and filter out those that remain unconfirmed.

Marketers and GDPR – Heads in the sand?   

Marketers and GDPR – Heads in the sand?  

Simon McLaven, CEO of The Ark 

We have all read the plethora of statistics that point to the country’s lack of preparedness for GDPR. Yet speaking to many data managers, CIOs and compliance officers over the last few months, I do not believe that this corporate inertia is simply a matter of marketers burying their heads in the sand.  There is a growing feeling that all levels of the organisation – from backroom to boardroom – remain genuinely unclear about certain aspects of the Regulation, especially the issue of consent, and that this confusion is paralysing compliance efforts.

Sadly, firms are being deterred from progressing with the necessary overhaul of their strategies and systems due to the dearth of detailed guidance on the practicalities of GDPR implementation. The DMA Group has recently added their voice to calls for greater clarification – from the ICO in particular – to bring an end to this state of limbo. The RNLI case – where a database repermissioning project from last year may fall foul of newer guidelines – will cause increasing frustration among marketers (and rightly so) because it penalises what should be a laudable, best-practice example of proactivity. This type of publicity sends out all the wrong messages, actively discouraging organisations from giving the green light to their plans for fear of having to go over the same ground twice. Let’s hope that common sense prevails.

Put simply, the ongoing uncertainty is no excuse for delaying all GDPR preparations. In fact, waiting for guidance about the opt-in model could mean losing valuable time in the race to shape up for one of the most basic elements of compliance – data quality. The overarching principle of data accuracy is enshrined in the Regulation in crystal clear terms: Chapter II, Article 5 (1d) states that personal data must be kept accurate and up-to-date, and that “every reasonable step” must be taken to make sure that inaccuracies are “erased or rectified without delay.”

This means that databases must be maintained to the highest possible standards which includes suppressing or updating the records of deceased or goneaway customers. This is an area in which many companies have become complacent, believing that the legacy suppression files they have relied upon for years will do the job. It’s a risky assumption – and at worst could lead to a technical breach of GDPR with its hefty financial penalties. Aside from the commercial benefits to be gained by boosting the accuracy of customer data, it is also worth bearing in mind that healthy databases will be the cornerstone of any repermissioning exercise.  With the costs of customer acquisition set to rise in the GDPR era, now is not the time to lose track of valuable, opted-in customers when they move home.

The clock is ticking and companies that push ahead with their preparations now – especially in the fundamentals of database management – will reduce the likelihood of being thrust into a reputation-damaging, last-minute compliance panic as the enforcement date looms.

 

Why returned mail won’t cut it as a suppression strategy under the GDPR

Why returned mail won’t cut it as a suppression strategy under the GDPR

At the beginning of March the Information Commissioner’s Office (ICO) published its draft consent guidance for the General Data Protection Regulation (GDPR) which could have far-reaching consequences for UK businesses.

Without the ‘right’ consent in place many businesses may struggle to legitimately send marketing campaigns to their customers and may be required to re-permission their entire customer database. There has been much discussion about the significant impact these changes will have on a business’s ability to engage with their customers and generate revenue from their marketing campaigns. But the change also creates an additional unintended consequence when it comes to data suppression.

Smaller campaign volumes result in a reduction in the amount of returned mail. Many businesses, especially in the banking sector, rely on deceased and gone away notifications from these returns to keep their data up to date and accurate. Without this source of data, they will need to find alternative ways – such as using external suppression files – to keep their databases accurate and compliant.

GDPR is a legal requirement. Failure to comply with the Regulation’s requirements carries the risk of severe financial penalties. The Regulation states that personal information must be kept up-to-date and accurate. Any inaccuracies must be corrected or erased as quickly as possible and personal information should not be kept for longer than the purpose for which it was originally acquired. Deceased data that no longer serves any purpose should therefore be suppressed (if there is no purpose for keeping those deceased records on file). Failure to do so is a clear technical breach of the Regulation.

What’s more, a new requirement of GDPR is breach notification: the ability to notify individuals in the event that data has been lost or stolen. Notification needs to take place without undue delay and only those living persons at risk should be identified. If a business has not suppressed or flagged the deceased in its customer database, it will clearly not be able to meet this requirement. Suppressing in the wake of a data breach is the wrong time to take action.

Failure to put the right processes in place to ensure data remains accurate and up to date could represent a technical breach of the Regulation and incur a financial penalty to the tune of 2 per cent of global group turnover, or €10 million. It is therefore crucial that businesses – particularly those that still rely heavily on returned mail to keep their databases up to date – include suppression within their wider data review as they prepare for May 2018.