Responsiva Data now offers a database evaluation service, which has particular relevance for insolvency practitioners when assessing the overall value of a company entering liquidation. Or indeed for any business requiring a valuation where a database is included within the company asset list.
Almost all businesses have a database, and most have two:
1. CUSTOMER DATABASE
A good customer database includes relevant information on spending patterns (i.e., products or services purchased, alongside transactional history). This database should also include purchaser contact names and details (such as direct dial telephone and email addresses). The value of this database links directly to overall company value, and overall goodwill of the customer base. A well maintained customer database, with full transactional history, can be valued by establishing each record’s estimated lifetime value. This is achieved through regression techniques. i.e., by establishing the average historic and lapsed customers’ value, the data model is applied to active customers to estimate a future value.
2. PROSPECT DATABASE
The second type of database a business may host is a prospect database, which is used for marketing initiatives. This will have typically been purchased from a data list broker and/or compiled from inbound enquiries. A good data list broker will have supplied this data based on a data profile of the customer database. i.e., if all the customers are builders & plumbers, then the prospect database will also contain builders and plumbers, exclusive to the customer database.
Evaluation of a prospect database is based on many factors which include;
1. The age and currency of the data. This can be established by matching the file to the current (updated) universe of UK businesses. The more matches there are, the more current the file.
2. The licensing agreement of the data, as originally sourced. Inbound enquiries will be ‘owned’ by the company, but data sourced from a list broker may have a limited license agreement.
3. The data fields within the prospect database. For example, does the file just contain company names and addresses, or is it also populated with contact details, job titles, telephone numbers, email addresses (and are these personalised or generic?), industry classifications, company size (turnover / employee size), premise types (e.g. retail outlets, warehouses, offices) and even the incorporation date of the prospect.
4. The warmth of the data. For example, any communication history associated with the file. When and how last contacted (by phone / email / fax / post), and any responses to these communications.
5. Most important of all; who would be interested in purchasing or licensing this database for their own marketing? By analysing all the fields within the prospect database, a potential purchaser can be identified. For example, if the database contains solely plumbers then a plumber’s merchant would be a good place to start looking for a buyer. If the records arer exclusively warehouses then a fork lift truck company may be interested.
In presenting the database evaluation, Responsiva will also identify prospective purchasers AND an overview of how many such purchasers there are in the UK.
For example, there are approximately 2,300 plumbers merchants and 750 fork lift truck companies within the UK; each could be contacted (using the above example) via letter or telephone until a prospective buyer is found.
As with all things in life, a database is only worth what the purchaser is prepared to pay. Furthermore a potential buyer may prefer to source data from a respected data list broker, rather than a liquidated company. But because there is some value with all databases, it follows that a buyer could be located.
FREE DATABASE EVALUATION: JUNE 2009 only!
In launching this service Responsiva are offering the first database evaluation free of charge, limited to insolvency practitioners and strictly for the month of June 2009 only.
There is no obligation beyond this free trial, and all data provided for an evaluation will be treated in strict commercial confidence. i.e., data will be utilised solely for the purpose of the evaluation, reporting all findings to the insolvency practitioner only.
To take advantage of this free trial, Responsiva may be contacted on freephone 0800 118 5000 , or via email to firstname.lastname@example.org