The Internet has had a major effect on the business sector, specifically, it has leveled the playing field to allow smaller firms to readily compete with larger corporations. Whether you are the larger, established firm or the up and coming competitor, a business must strive to acquire and maintain a competitive advantage at all times. The savvy marketer knows that it is information that yields this advantage, and as a marketer, this information is embodied in a company's own house file.

Second nature to some, and a revelation to others, a clean, updated, and functional house file is one of the most critical components for maximizing your overall sales and marketing efforts. This importance is further emphasized by the direct and almost immediate communication capabilities we can have with customers and prospects via Email.

Email is, in essence, a marketer's dream for cost-effective database driven communication activities with customers and prospects.

So lets get "back to basics" with regards to the house file. An effective house file is a data warehouse that can drive the marketing process via information. Specifically, a structured house file will facilitate the development, testing, implementation, measurement, and refinement of customized marketing programs.

As part of the information gathering process, you need to take a step back and view the big picture of the information entry points at your organization. These "information portals" will include inbound calls, inbound mail, as well as your corporate web presence. Information warehousing could be further enhanced with the sometime "hidden" data acquired from your customer support group, individual contact management databases, as well as transactional information contained in your back-end fulfillment system. Working closely with your IT manager, data from the various information portals can be contained so that this information can be converted into a marketing tool. Once the software is selected, the next critical stage is selecting the information you want to maintain.

A general rule: the more information you know about your customers and prospects, the better your house file is as a strategic marketing tool. So what should you be capturing besides the basic name and address data? There are a few highlights that can yield your organization many long-term benefits in the bigger picture of database driven marketing.

The date is an important component to the house file. You should retain the date that the customer was

originally captured and the last date of purchase, allowing the analysis of 'lag time' between acquisition and actual sales. Products codes and version numbers, stored in a relational format, provide you with the information needed for performing both upgrade and product cross-sell efforts.

A source code, indicating where the name came from, is also important for performing back-end analysis on the effectiveness of your advertising and marketing efforts. A promotion code is also useful for tracking the various promotional programs that you have instituted, i.e. - competitive upgrade programs, trade show pricing, various direct mail offers, etc.

Email addresses captured at the individual name level, is an absolutely critical component to your house file. The Email data will allow you to implement a fast and efficient continuity program with customers, while establishing relationships with your prospects.

However, if you are going to collect Email data - do the right thing up front. Go ahead and allow individuals to opt-in to receiving information from your own organization. While this is considered by some to be a more conservative approach with regards to data native to your own house file, in my opinion, it is the safest way to handle Email data and respect the privacy of your customers and prospects. At a later date, you should provide the individuals who opted-in to receive information from your company with the option to receive Email-based offers from third-party organizations. Those who opt-in at this level will be the basis for a future Email rental program, which will add ancillary revenue to your organization.

Overall, the procedural "tightening" of the Email data will ensure that future communications will be sent only to those individuals who are really interested in receiving your information and offers. Unlike the many no-name conglomerate Email lists currently available, the 2-staged opt-in process truly yields a marketable and revenue-generating tool, if it is done correctly. And it should be done correctly in order to protect the interests of your business and the industry as a whole. It's true, the cost of Email marketing is more subliminal than other direct response methods, and it is very easy to have a mindset of 'just mail it all.' However, there are other costs involved, which include your company's reputation as well as the cost to the industry which, as a whole, will pay down the road. Sensible self-regulation will allow our industry to grow while continuing to use information in the most productive of ways.

As a Direct Marketer, you should be proactive with the data being collected by your organization, especially when it comes to Email information. Collect it and use it in a responsible manner, as it is one of the most important factors for keeping your database marketing efforts ahead of the rest.