The Power of Data Enrichment: Improving Your Business Insights
Data is what fuels the modern business environment. Helping business leaders generate unique and helpful insights that power their decision-making abilities, having access to high-quality and comprehensive data sources is not optional.
Through data enrichment, businesses can enhance their existing data sets to provide more context and additional information for deeper insights. As the landscape becomes more competitive, businesses need to find ways to tap into new value as a way to grow their market share and bolster their competitive advantage.
In fact, it was recently reported that 66% of customers want brands to understand their unique needs and expectations. With consumer trends changing at a quick pace, businesses need to consistently seek out new ways to enrich their data to better understand and serve their customers.
Throughout this article, we will discuss what data enrichment is and how it can help businesses extract better insights from their data sources to drive better efficiency and performance.
Understanding Data Enrichment
Data enrichment is the process of taking existing data and making it more useful and valuable by combining it with external or internal data sources. This allows businesses to pull additional details and insights that weren’t possible with just the raw data. Some of the main types of data enrichment include:
- Behavioral: Data on how customers interact with brands and their products or services, providing insights into customer preferences and behaviors
- ~Web browsing behavior/patterns
- ~Purchase history
- ~Click-through rates
- ~Social media interactions
- Demographic: Statistical, census-related data that’s helpful for customer segmentation
- ~Marriage status
- Geographic: Location-specific data to help with customer targeting and segmentation
- ~Zip code
In other words, combining various data sets together creates a unique data set that is custom-tailored to a business’s needs. A business can enhance the data they possess with behavioral, demographic, and geographic data to provide them with insights that cannot be found anywhere else.
The whole point of data enrichment is to make the data that businesses possess more useful. Especially in today’s environment where there is more data widely available on consumers than ever before, it’s become increasingly important to find ways to present and assess data in a way that provides unique insights that competitors don’t have access to.
Business Applications of Data Enrichment
There are countless ways that businesses can benefit from data enrichment. As you continue reading below, we will dive deeper into the power of data enrichment, and how it can drive better insights and performance for the businesses that take advantage of it.
Better Customer Insights
On a broad level, data enrichment can help businesses gain better and more accurate customer insights. Businesses can create more robust customer profiles to paint a clear picture of who the customer is based on their social media interactions, location, age, browsing habits, and more.
As a result, this can help businesses offer better personalization and targeting when it comes to outreach, the individual shopping experience, product recommendations, customer support, and more. This is highly relevant to businesses today, as 52% of consumers want all brand offers to be personalized.
Plus, with better insights into their customer base, businesses can more effectively segment their customers for marketing campaigns. As a result of better personalization through data enrichment, businesses can expect better customer engagement, conversions, retention, and brand loyalty.
Enhanced Lead Generation
Data enrichment helps businesses better identify potential prospects and segment leads based on their level of interest in the brand. This can be done by combining data on customers’ browsing history with social media engagement and other data points to segment leads by how interested they are.
In this way, companies can boost engagement by offering customized communications to nurture leads more effectively. As we’ve already discussed, personalized marketing tactics prove to be much more effective than traditional methods, so this is a large bonus to businesses that leverage data enrichment both for new and existing customers.
Enriched data helps businesses identify which leads are more likely to convert into customers. Then, they can choose to devote their resources to the leads that they expect to bring in the most amount of revenue for the business.
Improved Market Analysis
Aside from gaining a better understanding of their customers, businesses can also use data enrichment to gain clearer insights into the market. Enriched data makes it easier to do a competitive analysis. Doing so can help reveal the opportunities that are on the horizon, as well as assess the profitability and feasibility of such opportunities.
With enriched data, businesses can identify trends and patterns in customer behavior more quickly to anticipate shifts in the market and adjust their operations accordingly. The modern-day markets are dynamic, so businesses cannot rely on stagnant or one-dimensional data to stay competitive. For this reason, data enrichment is a powerful tool that allows businesses to stay agile and make data-informed decisions that will keep them profitable and efficient.
More Accurate Risk Management
For certain businesses, data enrichment can also help bolster their risk management abilities. With more data on customer behaviors, payments, purchase history, and other data points like credit history, businesses can have a better view of the risks they’re exposed to.
Having more comprehensive data available means businesses can have quicker fraud detection, like identifying when a chargeback request is being done honestly, or with malicious intent based on their past purchases and interactions with the brand.
Businesses can use the additional data points to monitor unusual behaviors and set up warning systems to alert them when there’s a concern before it escalates into a larger issue. Thus, data enrichment helps businesses mitigate their risk exposure and become better equipped to spot fraudulent or concerning behaviors earlier.
More Precise Product and Service Development
Lastly, data enrichment allows for more precise development of new products and services. Having enriched data helps businesses gain a better understanding of their customers’ needs and preferences. So, new product and service development can be more successful as it actually meets their needs and wants.
Oftentimes, a new product or service launch fails because businesses lack clarity about what their customers are actually looking for. But, data enrichment can help provide more accurate and comprehensive information about customers’ online behavior, survey responses, browsing habits on the website, and other points to lead business leaders in the right direction.
For instance, a company that has been very successful selling pre-packaged iced coffee drinks might decide to expand into other product lines like iced teas or carbonated drinks. But, they may not understand that their customers are only looking for new iced coffee drinks and flavors, and are already loyal to other brands for the different beverages. Or, maybe their customers drink iced coffee instead of these other beverages and aren’t interested in the new products–from the same brand or any others.
By combining survey responses with the customers’ purchase data and other data points they have access to, business leaders can gain better insight into their customers’ desires and make informed expansion decisions according to the data.
Take Your Business to New Heights with Data Enrichment from Assivo
As you can see, data enrichment can help business enhance their efficiency and productivity. Being able to derive valuable insights from the data that’s out there may not be possible by just analyzing raw data points alone. However, data enrichment that combines multiple data sources offers unique perspectives and contexts that can help businesses be more accurate with their decision-making.
Explore what data enrichment can do for your business growth by working with a provider that is skilled and experienced in the field. Though powerful, performing data enrichment in practice can be quite challenging and time-consuming for those who are unfamiliar with it. So, working with a trusted provider like Assivo means you can focus on core business functions while we enrich your data using our proven processes and tools.
The possibilities are endless when it comes to what your business can do with data enrichment, which is why we take the time to learn your unique needs and business model to create a custom-tailored data enrichment solution to fit your business best.
Get started now to enrich your data and boost performance with Assivo.
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