Written by Kevin Voigt, VP of Client Solutions
In the marketing industry, data optimization can often sound like just another buzzword. Many interpret it narrowly, assuming it’s just about ensuring clean, well-maintained data. But at its core, data optimization is a dynamic, strategic practice—it’s about uncovering hidden opportunities to expand audiences and extract more value from the data you already have. And in today’s fiercely competitive landscape, especially in industries like financial services and insurance, it’s the difference-maker.
Breaking Through the Status Quo
In my experience, the biggest hurdle for marketers isn’t the lack of data or even analytics expertise. It’s the comfort of the status quo. Many organizations, particularly in finance and insurance, have teams of analysts and data scientists—entire floors dedicated to crunching numbers. The result? A perception that targeting is already optimized and there’s little room for improvement.
That mindset is a mistake. Time and again, my team and I have partnered with brands to implement our data applications, delivering measurable performance gains. Whether it’s refining audience segmentation or leveraging multi-sourced models, the results are undeniable: increased efficiency, better targeting, and significantly improved ROI.
Optimization That Works: Real Results
When executed properly, data optimization provides absolute control over two critical levers: scale and cost of sale. Different business seasons demand different strategies. Growth phases might prioritize scaling up, even if it means higher costs. Conversely, other times call for a focus on reducing the cost of sale, even at the expense of scale.
An optimized data strategy allows you to confidently adjust these levers as needed. With multi-sourced models—where data from all three bureaus is combined with consumer files and machine learning—we consistently outperform legacy mail strategies by 30% to 50%. In some cases, we’ve even doubled our clients’ direct mail performance.
Personalization Without Overkill
Let’s talk about personalization. It’s a popular topic, often misunderstood. Too often, marketers equate personalization with overloading mail pieces with first names or gender-specific imagery. But true personalization is far more strategic. It’s about delivering the right product, at the right time, to the right household—a household that genuinely aligns with the marketing message.
Consider this: You might be the ideal candidate for a $4,000 Peloton bike. Your neighbor? Maybe not. The key lies in using data to identify households where the message will resonate, ensuring relevance without resorting to gimmicky personalization tactics.
Collaboration and Trust
Optimizing data isn’t just about algorithms and models. It starts with trust. When clients trust us to handle sensitive data—from financial records to healthcare information—we earn our “ticket to the game.” At Nahan, we’re fully credentialed and compliant, ensuring our clients’ information security teams have confidence in our processes.
But trust extends beyond data handling. It’s about collaboration. When onboarding new clients, we ask one simple question: “How do you plan to achieve your year-over-year growth goals?” The answers reveal their current data practices and highlight areas for improvement. By focusing on their success and growth, we become an extension of the team - an embedded growth partner with shared goals.
Looking Ahead
As we look to the future, the importance of data optimization will only grow. Direct mail remains a powerful channel, particularly when integrated with digital and social efforts. While “omnichannel” has been overcomplicated in recent years, the principle is simple: optimized direct mail data can inform and enhance digital campaigns, amplifying overall marketing effectiveness.
For companies starting their data optimization journey, my advice is simple: be open to new voices. Change is hard, especially when internal teams resist external input. But status quo isn’t a strategy. Embrace the opportunity to innovate, and you’ll unlock new levels of performance and growth.
At Nahan, we’ve reinvented our business to help direct marketers take their programs to the next level. Whether it’s scaling up an acquisition program or refining targeting to reduce costs, we’re here to help you win. Let’s move beyond the buzzwords and make data optimization work for you.