My last couple articles, Most Marketers struggle to get information on Prospects and Gaining Efficiencies and Effectiveness in Marketing, defined one view of alternative data. Now I want to direct the conversation to how marketers can take action and monetize the insights derived from this data.
There is a Need
From a recent survey conducted by LexisNexis® Risk Solutions, 52% of financial marketers say that getting information on prospects is a challenge. Traditional marketing data provides insight on consumers that all marketers utilize. Non-traditional, or what we like to say, alternative data, provides expanded consumer insights. Over the past year we have worked with many marketers and uncovered how alternative data can power more robust analytic engagements.
By definition alternative data is not a common or primary source of insight for marketers. Many consider it limited-use, niche, or specialty data. As good marketers do, one must always consider the source and evaluate the data(base) on its own merits. Just because alternative data is not commonly used, doesn’t mean it has limited applicability. In the case of LexisNexis Risk Solutions, the reason it is not commonly used is because most of our data has only recently been made available for marketing purposes.
In the last couple years we have learned that our alternative data can be quite insightful and can be used to predict a variety of outcomes including likelihood to move. In addition, we have done look-a-like modeling, response, and propensity models. This data is being used by financial and non-financial marketers.
For financial marketers, alternative data sources allow marketers access in pre-screen and invitation-to-apply campaigns to reach credit-worthy traditionally unscorable and credit invisible consumers. We’re also seeing that the data is quite relevant for non-financial marketers for profiling, segmenting, propensity modeling and other marketing use-cases. It is providing keener insights into customers and by extension, prospects.
Now, at LexisNexis Risk Solutions, we’ve expanded our capabilities to provide an extract (or list) of people to target based on the insights gleaned from this data.
Do you mean that you will provide a list of people to target?
Yes. One of the key developments is our ability to now provide a list of prospects in any geography in the United States. Our database of more than 280 million consumers that leverages more than 40 billion records from over 10,000 sources is proving to be “quite relevant” for sophisticated marketers. The lens in which our data focuses the view of your customers goes back to LexisNexis Risk Solutions’ core value proposition of helping companies verify identities, prevent fraud, and predict credit worthiness. And now with our ability to provide you a list of prospects based on this analysis provides marketers with a solution that can fall within your ROI requirements.
Alternative data can have great strategic and tactical value. I would love to hear from you all on the types of data you consider non-traditional and sharing any of your success stories. I’m happy to do the same. J
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About the author: John has a dual role consulting on using alternative data for marketing data analytics and consumer credit risk decisioning at LexisNexis. These roles intersect at many points throughout the customer lifecycle starting with marketing strategy (acquisition, cross-sell/upsell, customer service and retention) through credit underwriting and account management. The goal is to help companies increase organizational efficiencies and effectiveness using a pragmatic, empirical data-driven approach that allows for measuring, refining, and scaling customer insights across the enterprise.