List Metrics; how to measure quality in a list?

List Metrics; how to measure quality in a list?

Proving ROI is what will empower one of my clients at Broadlook to sign up for year #2, 3, etc.  Without good metrics, corporate budgets won’t open up year after year.   To help my clients track ROI,  I’ve put together some concepts over the years to help examine the pipeline of sourced data.

Without a perfect record of all hires, measured against years past, ROI is hard to prove in a single year.   Don’t get me wrong, some companies do this very well; however, they are the exception.  In most cases, metric must be applied to the pipeline of data and the quality therein.  (For recruiters, data=candidates, for sales reps, data=leads)

How do you measure a list?   How important is it to keep a particular list updated?  What is the frequency that a list should be updated?   When is a list too old?  What resources should you apply towards building a list?   When is it cheaper to outsource the creation of a list vs. build it yourself?   Do you want to create a one-time list OR do you need to have a documented, systemic process for keeping a list updated?

What I want to present here today is a concept I call  List Metrics.  Instead of boring you with numbers and formulas, I am going to share, at a 10,000 ft view of how I think about lists and data.

To determine the value of a list and the resources that should be applied to creating a list, I teach my clients to create a scoring system.  One score for an existing list, another score for the importance of creating a list.

Yes, a list can have a score.  A list score is determined by 2 factors:  Data Quality and Competitive Advantage.    Data quality is a combination of Accuracy + Timeliness.  Competitive Advantage is weighted by the degree of targeting and Exclusivity.

Data quality in lists

Some thoughts on the 4 measures of a list:

Accuracy:  Does your list give you dead people?

  • Is the list static or does it exist within a data-driven website?  (1995-2002 static, 2003-2008 data driven)
  • Is it someone’s passion?  (i.e., top 100 rutabaga growers (Typically high quality, timely, comprehensive))
  • Was any verification process used?
  • Is the list mandated via state or federal? (Registered Professionals, Banks & Credit Unions, Hospitals, SEC filings)

Timeliness: How often is the list updated?

Targeted: (the right 50 or the wrong 500)

  • Is it categorized by a outdated concepts such as SIC codes or general industry classifications?
  • Does it serve a niche market? (List of Microsoft CRM resellers)

Exclusive:  Who else has YOUR list?

  • Was the list made for profit? Is it for sale?
    A custom created list is always far superior then renting a list from a source that will sell it to anyone who coughs up the $$
  • Does your #1 competitor have access to the same data as you?
    Every single online database falls into this category, Zoominfo, Spoke, etc.  It does not matter how large a database is if everyone has access to the same tiny fish bowl.
  • How many times was your list sold?
  • Are the same people from the same companies being called over and over?

Developing a scoring system:

Every niche in recruitment or lead generation will have varing degrees of importance.  In one business, fresh data may be more important, in another…lets say in a comodotized market, it may be exclusivity.  Determine which of the 4 factors are most important to you.  Next, using a 5 point scale, plot the “score” of your list by placing it on a Gartner magic quadrant.

For recruiters, the most valuable list would be one that (1) exclusive and (2) fresh data.  Typically, this type of list is created  on demand based on a current need.

YOU CAN’T BUY A LIST LIKE THIS.

You can commission one to be created from a great name sourcer like Maureen Sharib.  This type of custom list has high value.  I am surprised more recruiters don’t use name sourcers and research for hire.

FISH BOWL DATABASES

As more “online” databases proliferate, more and more people will be fishing in the same fish bowl of overused candiates and sales prospects.  Why fish from a fish bowl when you can go directly to the ocean?  If everyone has access to the same fish bowl, it doesn’t matter how big it is.  We all know what happens when a fish bowl gets too populated…

Fish bowl

THE GROWING TREND OF NAME SOURCING

The demand will continue to grow in the next few years for researchers and name sourcers.  Recruiting and sourcing are diverging into separate entities.   I am excited that Broadlook is announcing our Broadlook Remote Research program early next week.   We’ve had it running in stealth for about four months now.  Combine a fully trained researcher in concert with an entire suite of Broadlook tools.  Put them to work for either 16, 20 or 40 hours per week.   Instant staff augmentation.  We’ve had overwhelming success.  Fun stuff.

Thank you to all the clients that piloted the program with us and help us work out the kinks.

Thoughts on picking a recruiting vertical; building a new desk

What is a good vertical market to recruit in?   I get asked this question every week.    

However, most often the question is more a question of what I “feel” would be a good market to start a new desk specialty in.  

“Donato, what do you feel a good new desk specialty would be?” 

I say. “I feel like a great market would be placing sales reps in recruiting software companies that do real time data mining of contact information.”  

They respond, “but Donato, Broadlook is the only company I know that does this kind of thing.”

“That’s right”, I say.  “..and I don’t pay fees”   <grin>

About this time they realize I am having fun at their expense and I chime in. “You asked me what I feel, not what I think.”

Most recruiters don’t think it through thoroughly when starting a new desk.   Lets face it, thinking is hard.  A day of designing software wipes me out more than a triathlon (ok I’ve only done one). It’s not their fault.  This is how they were taught.  Or I should say, this is how they learned.  They watch someone who was a big biller and tried to do what they heard.

When discussing the creation of a new desk, I hear a good deal about reading everything from an industry, articles, journals, etc.  Wake up, this type of activity is about learning about the industry, not if the niche will support a desk.  If I am going to trust my livelihood to one vertical or another,  forget the gut, give me data.

“Hey Donato, are you telling me to ignore my gut instinct?”  

NO

The role of the “gut instinct” in this whole process should precede the data gathering.  The gut should lead you to the top several candidates and then you then expose to the scientific method.  The gut gets excited while reading and learning.  Don’t let it get carried away.

The gut is the emotion, the wind.  Let the data be the rudder and the sail.

To start a new desk, I would prefer solid facts about a potential specialty, such as:

How many open jobs, by state and nationally?   (size of universe)
How many recruiters specialize in the niche?     (competition)
What are the average fees paid to recruiters?    (compensation)
What resources can I use to build a candidate pool?  (sourcing)
What resources can I use to win business?  (marketing)
Will I enjoy working this desk specialty? (mental health)
Can I own the space, can I brand this space as mine?  (branding)

Once you do decide on a new desk specialty, based on the data, the first thing to do is think about branding yourself.  I’ll focus on the other questions in my next few blogs.  A great example of branding is Harry Joiner and his site MarketingHeadhunter.com

How easy is it to brand yourself?   Two areas that I know are hot are Physical Therapists and Nanotechnology.  Very different, but both very hot.  So I went out to GoDaddy.com and checked the following web sites:

PHYSICALTHERAPISTRECRUITER.COM   (FREE)
NANOTECHNOLOGYRECRUITER.COM      (FREE)
BIOFUELRECRUITER.COM                            (FREE)
FUELCELLRECRUITER.COM                          (TAKEN)
GREENENERGYRECRUITER.COM                 (FREE)

Most of them were free and only one was taken. Again, all hot, hot, hot.

Heads up.  Don’t try to go register, PHYSICALTHERAPISTRECRUITER.COM or NANOTECHNOLOGYRECRUITER.COM because I just registered them.  The others are free as of this writing.  I may not fetch the 99K that Jason Davis is asking for CEOjobs.com, but they will sell for a hefty profit.

The first Physical Therapist Recruiter to purchase the Broadlook Suite, you can have that site for free.  (I have no passion for that desk).  New clients only.

Don’t ask for nanotechnologyrecruiter.com.  Nanotech excites me.  It’s mine.

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