Data is vital to modern businesses. It is used to develop marketing, sales, and customer service strategies. Data is the foundation of every business decision that leaders make to improve the profitability and growth of their companies. Leaders can make more informed decisions with data than they do with speculations.
Great business leaders make use of data wrangling to clean and structure to enrich data for their decision-making. Forward-looking companies are realizing that data is becoming complex and unstructured, and therefore require data wrangling. Data wrangling involves six steps: discovery, structuring and cleaning, enriching, validating, validating, publishing, and validation. We will now examine the fourth stage of data wrangling, data enrichment.
What is Data Enrichment?
Data enrichment refers to the combination of first-party data from internal sources with disparate information from other systems or third-party data from external data analysis sources. Because it makes data more useful and provides insight, enriched data can be a valuable asset to any company. Most brands perform data enrichment to improve the quality of their raw data in order to be able to make informed decisions. Data enrichment grew by over 80% in 2018 and is expected to continue growing.
No matter the source of data, customer data starts in its raw form, regardless of whether it is site traffic, social media, or email lists. Customer data is stored in a central database and is almost useless once it is collected. The raw data is then cleaned up and structured before being added with external data to provide additional information.
Data enrichment adds value to the data and makes it more useful. This helps brands better understand their customers, and provides deeper insight into their lives. There are many methods of enriching data. One excellent example of data enrichment is to combine internal sales data with third-party advertisement data in order to gain a better understanding of advertising effectiveness.
Benefits of Data Enrichment
Data enrichment offers many benefits, making it an excellent infrastructure for companies.
Data enrichment can save you money
Global Databerg’s report states that a company with 1 petabyte of data will spend approximately $650,000 per year to manage it. However, these companies only use about 1% of their data to gain any real benefit. Data enrichment can save you money as you don’t keep data that isn’t useful for your business. You instead enrich your internal data with data from outside sources to benefit your company. Spend the funds on activities that will have a positive impact on your bottom line instead of on databases.
Data enrichment fosters meaningful customer relationships
Personal communications are enhanced by rich data. It increases customer relationships and opens up new business opportunities. Your business can create communication strategies that are tailored to customer needs and preferences by using relevant customer data. Customers are more likely to buy from you if they feel like your company is listening.
Data enrichment maximizes customer nurturing
Data enrichment is a way to maximize customer care by identifying segments that can be nurtured. Segments provide valuable information that can be used to influence a purchase.
Data enrichment boosts successful targeted marketing
Targeted marketing is the future of marketing. Many businesses realize that one-size-fits-all marketing approaches don’t work. They are now turning to targeted marketing. An organization must use data enrichment to effectively segment data in order to make targeted marketing successful.
Data enrichment can help you increase sales
Imagine spending a lot of money on your contacts list in hopes of attracting customers and prospects, only to find that your list is outdated. These losses are not something that organizations can afford. Data enrichment allows you to have a clear and accurate contact list that will increase sales efficiency and improve ROI. It allows for cross-sells, upsells, and it is possible to know your customers better.
Data enrichment can be used to eliminate redundant data
A company can be severely affected by redundant data. This can lead to revenue loss, customer loss, and a damaged reputation. Organizations are often faced with redundant data because they don’t know which data to give up and which data to keep. Duplication of data in raw data can be eliminated using data enrichment tools such as Trifacta. It affects data quality and makes it difficult to find the right data. Data enrichment removes duplication and improves data quality.
Data Enrichment Improves Customer Experience
Customers have high expectations about their brand experience. Customers expect brands to get to know them and anticipate their needs. Data enrichment improves customer experience by providing unique information about customers. Personalized marketing allows your business to anticipate customer needs.
Keep the Data Enrichment Process Ongoing
Data enrichment, like other data wrangling processes, is something that you can’t do once and forget. No matter how precise the customer data, it’s always changing. Income levels, for example, are always changing while marital status is constantly changing. Customers’ physical addresses are often changed as people move from one location to the next frequently.
These changes can be very disruptive, so it is important that companies conduct continuous data enrichment. If brands neglect continuous data enrichment, they can provide customers with misleading information and offers. Technology has made it easier and quicker to enrich data by using data preparation software and tools.
A successful data enrichment process is essential for a brand to succeed in today’s data-centric world. Data enrichment is a way to make data useful for businesses. It must be actionable, valuable, and simple to understand. It is important to remember that data enrichment can be beneficial for different businesses. You should choose the data enrichment strategy that best suits your business’s needs and objectives.