The subject of today’s article is data enrichment, its benefits, and its uses. If you are interested in learning more about this topic, please keep reading! Let’s dive in!
The term “data enrichment” refers to integrating information from a trusted external source with an existing “first-party” consumer information database. The goal is to improve the brand’s current information to make better choices. No matter where it’s collected, all client information starts as raw data. When this information is transferred to a centralized database, it is generally introduced as separate datasets. When this occurs, data is often thrown into a data lake or swamp full of raw data that is seldom relevant in any but the most specific situations.
Data cleaning services may clean, normalize, and standardize information before it is ready for data enrichment. This process is because data cleansing is one of the first steps in information management.
The value of this basic information is enhanced by data enrichment. Brands may learn more about their consumers’ daily routines using data from a third party. The enhanced info is more comprehensive, allowing companies to tailor their communications to each client. The golden customer record relies heavily on specific data enrichment techniques. No matter how extensive a dataset is, it still won’t have all of the behavioral or transactional info you need to create a 360-degree perspective of the consumer. This is why marketing’s long-term objective of providing customized experiences relies heavily on a regimen of data enrichment procedures.
The Two Kinds of Data Enrichment
While there is a wide variety of data enrichment techniques available, two of the most frequent are:
Demographic Data Enrichment: Obtaining more demographic information on a client base, such as their marital status and income level, is an example of enrichment of demographic data. Both sorts and sources are abundant in demographic information. The data set you get may include household size, transportation preferences, economic status, and housing costs, among other things. For demographic enhancement, knowing where you want to go is essential. For instance, you can invest in a database that includes consumers’ credit scores if you offer credit cards. In this age of customized marketing, it is crucial to use data that has been so supplemented to improve the targeting of marketing offerings.
Geographic Data Enrichment: Adding postal data or latitude and longitude to a dataset containing client addresses is an example of geographic data enrichment. This information may be purchased from various sources, including ZIP codes, city and town borders, mapping insights, etc. There are a few situations when having this type of knowledge in your data might be helpful. Geographically enhanced data might help retailers decide where to open their shop next. The store may use this improved data if its goal is to attract the most extensive possible consumer base within a particular area, say, 30 miles. Geographic enrichment might also help businesses cut the cost of sending out large quantities of direct mail campaigns.
In order to create a complete and up-to-date “golden customer record,” how can you ensure data enrichment? One part of adequate data enrichment is data cleaning services to clean, normalize, and standardize client data. Data enrichment services and data enrichment tools are two additional crucial parts.
A data enrichment service is a method of requesting the assistance of external or internal resources to complete a certain kind of enrichment. One such service is an online address checker and verifier. In addition to the standard four-digit ZIP code, suppliers may include a nine-digit code and geographic coding data to help pinpoint an exact location. Calls to external data enrichment services, such as Email Oversight with a customer’s name to acquire additional information about their purchasing history, total income, demographic preferences, etc., are also famous for gaining a more nuanced knowledge of demographic information.
It’s essential to maintain the data enrichment process.
Data enrichment is an ongoing process like every other part of data management. No matter how extensive a company’s customer database is, it is still a frozen moment. Changes in income, marital status, automobile choice, and even location may all occur. It’s not uncommon for people to alter their names, particularly after getting married.
This variety of potential alterations necessitates the constant operation of data enrichment instruments and procedures. The alternative has data six months out of date, which might result in clients getting unsuitable offers. It’s hardly surprising that more than half of firms spend more time cleaning data than utilizing it, given the enormous task of keeping all this information up to date, particularly for more enormous databases.
For a contemporary company to succeed, it must have a data enrichment process that works smoothly. The more up-to-date a company’s data is, the better it can target customers, whether via the location of a new shop or the specifics of their demographics, to provide them with the most fantastic possible offers. Improved targeting and interactions generate more data, allowing you to maintain access to the most current client information. Click here for more information on data enrichment services.