Data Enrichment: A Simple And Concise Guide In 2021
Introduction
Data enrichment is the merging of third-party data with an existing database of customers’ data. It helps businesses to make more informed and insightful decisions. Data is by far the most important aspect or, say, and it is the lifeblood of any company. The data informs the company of various aspects like the personal details of customers, what their likings are, what age group of customers does the company interact with, in which countries does the company serve its customers etc. Data is the core of every decision for companies’ growth and profitability.
In this modern world, where companies have cut-throat competition to attract customers and gain a competitive advantage, managing data is very crucial. The data must be managed appropriately to yield the desired results for the company. The data can be used to know the customer’s likings and have the company focus upon customer satisfaction. In this case, the use of data enrichment is very significant.
In this article let us look at:
1. What is Data Enrichment?
Data enrichment is usually performed on raw data obtained from various sources like traffic sites or even social media. The raw data is useless for the company. This data is cleaned and structured before merging it with any external data to add additional information. Data enrichment makes the data useful and makes the data an asset for the company. The companies and enterprises can get gain an understanding of the customers’ lives and focus on achieving customer satisfaction. An example of data enrichment could be analyzing the sales data with the advertising data to know the advertisement effectiveness.
2. Process
Data enrichment is not a one-time process. It needs to be performed again and again as the customers keep on changing. The process of data enrichment involves several steps to be followed to achieve the desired results.
There are several steps involved in various data enrichment techniques. Firstly, one needs to define his needs. Loads and loads of data will be available with the company. However, not all of this data is useful for business purpose. Such data can prove to be a distraction and hinder the company from achieving its goal. So, the company should decide what its purpose is and what data is relevant for the same.
Then, analyzing the data is important. The data should be evaluated to ascertain the quality, accuracy and usefulness of the data available. Also, the redundant data should be eliminated. Lastly, the target audience should be segmented to focus only on some specific target segments. Not all data might be relevant for all types of customers. Therefore, the customers should be segmented as per the specific purposes the company wants to achieve.
3. Benefits of Data Enrichment
Data enrichment tools have various benefits, some of which are:
- Savings in cost: Companies spend a large sum of money on managing the tons of data available with them. Yet, they fail to yield the desired results. Data enrichment provides the company with only useful data which is relevant to the business. Also, we need not store any useless data and save that cost too.
- Improved Customer Relationship: By properly analyzing the customer’s data, the company can focus on meeting the customer’s needs. Various techniques and strategies can be used to meet customer preferences.
- Targeted Marketing: Data enrichment enables data segmentation and hence provides relevant information regarding the target markets. One strategy might not suit the business, and hence the strategies are formed as per the separate target audience identified.
- Greater sales: As the company focuses on the particular needs of the customers, they can better meet their needs. This will, in turn, lead to customer satisfaction. The networking effect will lead to greater sales of the company. The company has the right data and knows its customers well, and has a competitive edge.
- Eliminate Redundant Data: Data enrichment works by removing unnecessary and repetitive data. It provides the organization only the data which suits its business purpose. The company can focus on the important aspects, not wasting time on the other tasks. This improves the efficiency and effectiveness of the work performed.
Conclusion
The data, being an indispensable part, is crucial for achieving the targets of the enterprise and lead to a path of success. Data can be providing the company with a competitive advantage against the competitors if it adds value to the purpose. Data enrichment helps the organization focus on achieving greater market share and hence increase the earnings ultimately. Customers are the centre point of businesses nowadays. Customers can be better served using this modern technique. Understanding customers is a crucial process, holds due importance and cannot be neglected. If customers are understood well, it benefits the enterprise. Meeting the customer’s needs is the ultimate goal of an enterprise, and data enrichment helps to achieve the goal.
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