Forget ROI When Selecting a DM Agency

When selecting a DM Agency be less concerned about ROI, response rate and other hard measures than about the quality of execution of the Agency. After all, the market is now so commodified that any company can claim jaw dropping results from their efforts, these top line results are un-differentiated across the segment. What differentiates DM companies these days is no longer top-line results but risk management: low error rates, fast turnaround times, the ability to begin generate reports even before the database is up and running, etc. The ability to execute flawlessly is the true differentiator in this market.

Comments

[Cam Beck]

When you say, "The market is so commodified," are you saying every sector in the economy or just everyone who provides DM services?

If DM services are commodified, it seems that the ability to execute quickly and flawlessly is the prerequisite, and the ability to deliver ROI or at least the business intelligence one would need to make better decisions would be what differentiates you from the pack.

This gives you a couple of opportunities to make a significant difference, if you know your clients' business well enough.

1. Ask the right questions
2. Reach the right people
3. Report quickly and accurately
4. Be agile across several disciplines, never being too tied to just the ones you specialize in

All of this requires unfiltered honesty -- both to your internal team and the client. Never be afraid to give your honest appraisal of a situation you know well, and the right client will always ask for it.

[Adelino de Almeida]

Actually what I find commodified is the DM and Databse Marketing industry, but you are right at any rate: flawless execution is where the money is. Given that all competitors may somehow promise and likely deliver similar levels of top line results, the differentiator is now about risk reduction (quality of process) and cost reduction (lower cost per piece due to better operations.)

[Cam Beck]

Interesting. Thank you for the response.

[Anders blogger in marketing]

You have a lot of valuable information that I have studied with great interest and actually I am happy to see that today there is a lot of focus on solid basic business rules like ROI. I think that during the upstart of the Online Marketing many companies paid more attention to the PR value of a website and did not consider it a very important marketing tool. Today they have learned that profitable marketing is a must.