Introduction
The practice of exchanging buyer data or ‘list swapping’ is
relatively new to the
UK. The success of Abacus and Club Canvasse in
creating mail order catalogue buyer data-pools has caused an increasing number
of catalogue operators to question why the industry needs brokers to facilitate
data exchange. The advantage of catalogue buyer data cooperatives is that the
output of prospect data can be modelled to suit different catalogue target
groups. Nevertheless, catalogue marketers recognise that the best swapped files
of catalogue buyers usually out-perform even the top segments of data supplied
by Abacus and Club Canvasse. The further advantage of swaps is that they carry
no rental charge, although some would argue that extensive swaps have a
negative impact on list rental income.
There is no definitive database of catalogue businesses in the UK that is
available to catalogue marketers. There is widespread uncertainty therefore as
to who may be interested in list swaps and who might be approached. Uncertainty
has also existed with regard to the ‘rules of engagement’ that should apply to
‘list swaps’. Smaller catalogue businesses are naturally concerned that they
may suffer a disadvantage in any exchange of buyer data with a larger, more
experienced catalogue operator. Everyone is keen to ensure that ‘list swaps’
are undertaken on the basis of there being a level playing field for all
parties. However, no formal guidelines for good practice on ‘list swaps’ have
ever been published.
In November 2001, at the rather grandly-titled ‘Business Leaders
Debate’ held at the ECMOD Conference, consensus was reached on the need to
establish a central database of catalogue businesses willing to exchange buyer
data. At the November 2002 Conference, participants were invited to comment on
detailed proposals. One element of these proposals was a document entitled
Draft Guidelines for Data Hygiene and Security. These have now been further
refined and adopted by The Catalogue Exchange as a model code for list
exchanges between catalogue companies.
Data Hygiene and Security
Although these guidelines have been drafted for the benefit of
registered members of The Catalogue Exchange, other companies may choose to
adopt the code as a basis for undertaking list swaps. The guidelines are as
detailed below:
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All data supplied to swap partners shall have been MPS screened at some time in
the 120-day period preceding release.
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All data supplied under Catalogue Exchange terms shall comply strictly with the
description and selection parameters nominated by each swap partner. Under no
circumstances should catalogue requester/enquirer records be mixed with buyer
data unless otherwise agreed.
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In those cases where more than one segment of buyer data is being supplied,
data owners shall ensure that all segments are mutually-exclusive, i.e. no
duplicate names appearing in different segments.
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Unless otherwise agreed between the parties, all exchanges of mail order
catalogue buyer data are made on the basis of one-time usage and all data
supplied must be mailed within six months of the date of supply.
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Unless otherwise agreed all data should be supplied at the household level,
i.e. no more than one name per household should be supplied.
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The incidence of undeliverable addresses, corrupt data, true gone-aways,
deceased, postcode failures, duplicates or other ‘nixies’ should at no time
exceed 3% of total records supplied. In the event that such nixies should
exceed 3% of total, the swap-partner who is the mailer of such data shall have
the right to demand a credit equivalent to the number of defective records that
are present over and above the 3% tolerance threshold.
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That for the purposes of verification in matters related to data accuracy and
hygiene, all parties should in the first instance agree to be bound by
whichever independent third-party bureau has undertaken the merge-purge process
on behalf of the mailer.
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In the course of normal list-swap arrangements, registered members of The
Catalogue Exchange shall not be permitted to identify the catalogue or brand
affiliation of a buyer record supplied under a list-swap agreement, by applying
a permanent flag to such record on their database.
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Any agreement reached between members that provides for mutual data
enhancement, permanent flagging of data records, appending of data or mutual
house-file modelling should be undertaken on a bilateral basis outside of the
normal terms governing list swaps within The Catalogue Exchange.
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All duplicate buyers identified in a multi-list merge-purge process should in
any case be mailed within a maximum of six months of the original date of
supply.
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When members swap buyer data under the terms of Catalogue Exchange guidelines,
each party shall warrant such swaps are for the sole purpose of undertaking
mail order offers or catalogue mailings. Data obtained under such swap
agreements may not be used for any other purpose or any other type of mailing.
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All list-swap agreements concluded under the terms of The Catalogue Exchange
should nominate whether the swap is on the basis of gross or net names. In the
case of net name agreements, both parties will agree the maximum ‘nets’
permissible under the agreement and full, independently verified reports of
‘nets’ should be made available.
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All members of The Catalogue Exchange should ensure that their database carries
general seed names and that additional and specific seed records are included
in all data supplied in order to provide a common basis for security and
verification.
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That in the case of any unresolved dispute between registered members of The
Catalogue Exchange, the parties agree to be bound by the adjudication of the
Exchange Advisory Board. This provision to apply only to those list swaps
undertaken specifically under the terms of the guidelines for Data Hygiene and
Security published by The Catalogue Exchange.
THE CATALOGUE EXCHANGE
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