The benefits of Licensing Business Data
To purchase or to licence data? You may be thinking it is better to purchase data so you own it forever, however, in this blog we will explain why this isn’t always the best option and why in our opinion we believe licensing is an option that should eliminate your need to purchase data.
What Should You Consider?
First of all, when purchasing data, you have a database for life which will get no updates and as time moves on, more and more of the contacts in the purchased database will begin to change job roles and companies, making your database become ineffective and a waste of time and money. You will begin to have a decrease in response rates, reducing the efficiency of your marketing efforts.
If you were to update the database yourself, this will take considerable time and effort, which will only cost you more money, whilst missing out on further business opportunities.
By licensing the data on a 12 month term, you have the option for a data refresh. This means that we will cleanse your database and update any out of date contacts. This leaves you with a refreshed database which will be effective once again enabling you and your business to receive optimal response rates within your campaign.
Another option at the end of the 12 months is to change up your data set. You may have had success with your initial database within the first 12 months, but you may have discovered a new or more effective target market that will work better for you.
Ensuring GDPR Compliance
Whilst licensing data you also remain fully GDPR compliant. As mentioned above, your purchased database will not receive any updates therefore you will be holding out of date data for extensive amounts of time. It is non-compliant with GDPR to hold out of date data. Therefore, with a 12 month refresh of your data, you stay in line with the GDPR requirements as all of your data has received an update and is now completely fresh. Huge fines can be imposed when failing GDPR laws. We have created an extensive GDPR section to eliminate worries and to best inform you to help you become and stay fully GDPR compliant.
Another reason licensing is considered more effective than purchasing is that it is more cost-effective. When purchasing data, this is called an eternal licence, which means you pay a higher rate to keep the data forever. When licensing, this is a reduced rate in comparison to purchasing data outright meaning it is more cost-effective, along with the above benefits of the licence. This then gives you a higher potential return on income as you are paying less for the data, to receive a further update of the data after 12 months whilst adhering with GDPR, rather than paying more money for the data to age, become ineffective and fail GDPR laws.
What Will You Choose?
In summary, when taking out an eternal licence you are investing more money into the data, for it to begin ageing and rather than receiving a refresh, the data continues to age unless you allocate a lot of resources costing even more time and money. If this is not done, you are then non-compliant with GDPR and run the risk of receiving a hefty fine from the ICO. Potential ROI is also lower when purchasing due to the increased upfront costs and further management procedures. Please take this information into account when choosing what is best for your company. We recommend licensing, why not get on board?
If you have any questions about licensing business data, or would like to make an enquiry, please feel free to contact us using the number above or by filling out our contact form to request a call back from a member of our dedicated team.