Data Enrichement- Its Process, Types, and Benefits
Data can make you a winner. Yes, it’s true. You can become a forerunner in your niche, given that you have unique, fresh, and useful data. These can be in the form of business listings, leads, or customer details.
Now that you know data are precious, it’s also crucial to understand that your database should have first-party and enriched records. Although you can have third-party records, what makes a big difference is their accuracy and completeness. Simply put, emphasizing data enrichment can support building innovative & progressive business solutions.
Data Enrichment is Not Data Cleansing
Data cleansing refers to replacing typos with the correct content and fixing duplicate data entries & inconsistencies. This process ensures to have error-free information. Still, there is a big question mark on its accuracy. The reason can be incomplete details. Now that you come across why the accuracy is missing, it’s necessary to focus on completing them, first.
Here, the struggle begins. Brainstorm how to complete it – whether through first-party or third-party data sources. The first-party source can be CRM, the company’s own website, application, social media, etc. These are the sources that provide information straight from sources. On the flip side, third-party data come from governmental, non-profit, or academic sources, like demographics, weather, etc. These sources represent already researched datasets.
Once you enrich your data, drawing intelligence, customer insights, or smart strategies becomes no big deal. This is how businesses move ahead with their scalability plans or personalising experience.
So, here is what data enrichment is. It refers to the process of completing data to make them deliver appropriate and quality information by integrating requisite records. This is done by hiring first and third-party resources.
Types Of Data Enrichment
However, it is challenging to frame its types. But here, you can go through the most common ones:
It refers to integrating demographic details with the existing datasets. These details can be related to marital status, income level, number of children, and preferences of an individual.
Before doing this, you should have a crystal clear aim or end purpose in your mind so that hitting right at the goal won’t be difficult. This clarity will guide you to select the relevant source of details in no time. It’s like collecting information for targeted marketing efforts.
As its name suggests, geographic data is based on geographical details like postal codes, longitude, or latitude. This kind of detail is mainly valuable in different scenarios, such as identifying exact location of your customers or the area where the maximum strength of your customers resides. Once understood, making a final decision on where to open your store or office is like a walkover.
Purchase intent data
This is typically related to understanding customer behaviour and purchase interest. Simply put, a brand or merchant can easily discover if potential customers are willing to buy its products. This is mainly concerned with website data or CRM data, which spotlight real-time shopping journeys, product view frequencies, etc. It also consists of campaign results of targeting online audiences and what makes a purchase decision.
App Usage Data
These sets of information throw light on the app preferences of customers. These details also guide you to find the most preferred operating system and the devices that are compatible with it. These details help the app industry to enrich customer data for smarter campaigns. It improves customer experience by understanding what a particular user expects and what challenges are there in accessing it. Overall, it shows the way to reach out to a wider range of audiences.
Advantages of Data Enrichment
This process comes up with many benefits. Here are a few.
Easy to Segment Customers
Segmentation means classifying customers. It’s vital from the marketing point of view because it generates the scope for target marketing. You come across the target audience data, which helps in sending personalised messages that resonate with their intent. The enriched datasets show you the complete and authentic profiles of your target audience. In short, it makes reaching out to customers like a cakewalk.
Define Better CX
CX here refers to customer experience. For ages, customers always want more than what they pay out for. To live up to their expectations, the business owner has to dig into customers’ insights. Simply put, discovering their web journey, keywords, and geographical details points to relevant details. Data enrichment can help in this process. Once done, the marketing team can easily achieve its target.
Maximise Conversion Rate
This process powers marketers to smartly segment customers who intend to invest in the brand. They can engage that data with conversion strategies, which mainly focus on delivering values. It can happen by educating or making people aware of new launches, their benefits, and their usage. Before this, they thoroughly examine the interest or intent of every customer and segment them smartly. It ensures delivering personalised launch or promotional messages, which maximise conversions.
However, it is already aforementioned. An enriched database helps in tailoring products or solutions as per individual preferences or needs. This refined and relevant piece of information becomes a base for understanding what customers want. Their requirements via that data help in making informed decisions without wasting any money on blindfolded marketing efforts.
Processing Goes On & On
This process is not a one-and-done method. Customers’ preferences change over time because of multiple factors. This is why the data decay quickly, even though it is carefully enriched and collected. Therefore, it should be run in continuity by updating data swiftly. Ignoring such practices can result in the loss of opportunities because you won’t be able to draw accurate insights.
In the essence, the success of any business depends on actionable, fresh, and understandable data. Another important aspect is privacy and compliance. While enriching a set of data, these two elements should not be underestimated. Ensure that you have got consent from data subjects before using or integrating with your marketing funnel.
Data Enrichment is the process of integrating integral information with records to make it complete and informational. There are different types of data enrichment, such as socio-demographic, purchase intent, app usage data, and geographic data. Once enriched, it turns out easier to leverage its benefits.