For a lot of small and medium businesses, acquiring new customers is critical for their survival as they recover the losses incurred during the pandemic. Moreover, retaining existing customers and engaging with them is quintessential to strengthening the bottom line. This is where “data” comes into the picture.
Data is the precursor to every effort toward retention and acquisition. Therefore, businesses must make sure that they maintain accurate, actionable, and refreshed data. Notably, the quality of data is vital to analyze marketing endeavors and pinpoint loopholes.
Data enrichment ensures the accuracy of data for each contact, account, and lead, which leads to better insights and greater returns. In 2021, the Data Enrichment Solutions Market was worth $1.65 billion. The market is predicted to grow to $3.12 billion by 2029 at a healthy CAGR of 8.3%. Along those lines, let’s explore data enrichment in more detail.
What Is Data Enrichment?
Data enrichment involves a series of processes to append or enhance data collected regarding its relevance to the context. It also incorporates the latest information and updates to the existing data of an organization for accuracy. Data enrichment solutions deliver insights into various business relationships, driving the marketing and sales teams toward quality engagement.
How Does It Matter?
Data enrichment has become increasingly important as it helps small and medium businesses understand their users better without asking for information directly. It benefits organizations to transform the skewed data into a complete profile supporting data analytics for in-depth insights. Altogether, it allows businesses to refine, enhance, and reuse data to achieve business goals.
In essence, the main objective of data enrichment is to improve the view of customer cohorts and segments. It drives customer mapping to find better prospects like the existing best-paying users. For example, Aroscop maps data acquired from eCommerce platforms against its Data Management Platform (DMP) of 200+ million users and enriches the data against 400+ attributes to help identify who exactly the customers are. As such, businesses stand a chance to acquire more customers by targeting the right demographic.
Moreover, data enrichment eradicates incomplete and messy data, making it easier to add new information and improving problem-solving and decision-making. Not to forget – data enrichment prepares businesses for emerging technologies. With the advent of new devices, machines, and the resulting soaring interconnectivity – it’s challenging to access raw data directly, typically if it is unorganized or incomplete.
Most importantly, data enrichment makes it easier to use data by adding relevance and context. As a result, data cleaning becomes less time-consuming.
How Often Should Businesses Enrich Data?
Some data becomes outdated every year. So, it is fundamental to monitor data continuously and update it with recent and accurate information.
It’s noteworthy, though, that there is no one-size-fits-all technique to check and update data; it largely varies according to the business type and volume. For instance, large-sized businesses would collect data much faster and from relatively more touchpoints. So, it would be crucial to cleanse data and update it more often.
This is where a data-first technology partner can help. Aroscop tracks regular data collection, analyses data, and performs data enrichment with the required information. The approach includes data testing, enrichment, segmentation, and targeting. Together, it gives the richest and most useful data to businesses based on their specific needs.
The 3 Major Benefits of Data Enrichment
Valuable Data Collection That Fosters Customer Relationship
Enriched data is both valuable and relevant that addresses situations and problems. Data can be shared among stakeholders, shareholders, managers, and customers. When an organization needs more customer information, this enriched data helps foster customer relationships. It encourages meaningful and personalized communications which meet customer requirements and cater to their preferences. At the end of the day, customers prefer businesses that understand and give importance to their needs. Data enrichment maximizes the potential of nurturing customers.
Higher Data Accuracy
Data corrodes at a rapid rate. There could be many reasons for that, like potential customers changing their contact numbers. Not maintaining and cleaning data compounds the problems. Positive data enrichment involves verifying information to make sure the data is up-to-date.
Eliminates Redundant Data & Saves Time
Data redundancy leads to revenue loss, which equates to customer loss. Data enrichment eliminates redundancy without disturbing data quality. It corrects typing errors and eliminates redundant entries to make the data more reliable. Since it’s an automated process, it further reduces the effort and time needed to log and maintain data.
Data Enrichment vs. Data Cleansing
Data enrichment is often mistaken for data cleaning and vice versa. While both are a part of data hygiene, the methods vary. Data cleansing is the process of identifying and eliminating corrupt or incorrect data. Contrarily, data enrichment is about refining, enhancing, and improving raw data collected from third parties to integrate it successfully into the prepossessed data set. No doubt, the difference is subtle. Advanced tools deliver a combination of data cleansing and enrichment, and rightly so.
The Final Word
Data enrichment improves data quality substantially to deliver more valuable and accurate results. It enhances existing data, opens more personalization possibilities, encourages targeted engagement and better segmentation, and upgrades the overall customer experience.
Regardless of how data is gathered, it continues to evolve, change, and have meaningful insights to extract. To maximize the potential of data, businesses must enrich it consistently to avoid targeting non-ideal prospects, missing out on a chance to build a meaningful experience and deteriorating brand credibility.
Partner with Aroscop for customized data enrichment that suits your business needs.