Imagine a factory set up where raw materials are utilized to manufacture products. If you observe, the finished products have more value rather than raw materials. Similarly, raw data is like raw materials in an online ecosystem. It requires data enrichment to enhance its value to make it more profitable for marketers.
Whether it’s multichannel/omnichannel marketing or any other online strategy, data plays a crucial role. Hence, it has to be refined and structured for leveraging it in marketing efforts.
In today’s article, we are going to discuss the following topics –
- What is Audience Data?
- What is Data Enrichment?
- Why is Data Enrichment Necessary For Businesses?
- Data Appending and Data Cleansing
- How Data Enrichment Process Works?
- How Does Data Enrichment Help in Advanced Segmentation?
- What Are the Benefits of Data Enrichment?
So, let’s begin with the most basic question – what is audience data?
In simple terms, audience data is the information which you gather about the people who interact with your brand or buy your products/services.
Data allows you to reach your audience with the relevant products/services which they are looking for.
Okay, are you wondering where customer data enrichment comes into the picture?
What is Data Enrichment?
Data enrichment is a process of combining the existing first-party data with third-party data or other data sets to improve personalized targeting. Not only that, but many businesses also use this method to refine and structure raw data.
Why is Data Enrichment Necessary For Businesses?
As you know, there are different stages in a data lifecycle, and every piece of customer data is useful for a certain period. Afterwhich, you have to upgrade it with additional data points to make it relevant to the current scenario.
For instance, let’s assume you have a small data set which contains the PII information about your most loyal customers. The information may include their addresses, phone numbers, email ids, etc. This gathered data might be relevant today, but after some time, it will lose its value.
Why? Because these customers may change their phone numbers, shift to a different location or even start using different email ids.
Hence, it’s essential to update your database so that you don’t reach irrelevant customers and increase your ad spend. That’s when the data enrichment process enters the picture.
Data enrichment or data appending keeps your information up-to-date and enables you to create richer customer profiles.
Further, you’ll get to know more about data appending & data cleansing and their relevance to data enrichment.
Does this sound familiar? Yes, it’s the most common word associated with enrichment. And, rightly so, because data appending is another name for data enrichment. Many confuse it with being a different term, but it isn’t so.
Is there a correlation between CRM Enrichment and Data Cleansing?
Data cleansing, as the name suggests, is the process of removing irrelevant and corrupt data from your existing database. As discussed earlier, every customer information changes, and it will become irrelevant to your business after a while.
Hence, data cleansing helps in maintaining the accuracy of your data. However, both data cleansing and data appending are different in their functioning.
So, furthermore, let’s see how it works.
How Data Enrichment Process Works?
Before that, you need to know different types of data enrichment. They are:
Demographic Data Enrichment
Consumer data, such as gender, age, income, qualification, marital status, income level, etc., are constantly updated to improve your marketing efforts. These demographic details are essential to understand the interests and buying behaviours of your customers.
Geographic Data Enrichment
Any change in location, postal codes, zip codes and other details of your customers help you in understanding their needs and the shops they visit.
Especially, retailers or offline marketers can make use of this type of contact data enrichment in optimizing their advertising and marketing efforts.
Now, it’s easy to understand how it works –
Your CRM, which contains all these mentioned above points, becomes your first-party data.
So, all you need to do is bring in third-party data, i.e., additional information about your customers and combine it with your existing data. By doing so, you will not only make robust customer profiles but also understand your customers better.
Later, you can utilize these richer data profiles or data segments to target your customers as per your business goals.
To do this, all you need is a data enrichment provider like DigitalKites to facilitate the whole process.
However, audience enrichment is an automated and on-going process. It happens with less human intervention and often works with the help of algorithms, integrations and so on.
How Does Data Enrichment Help in Advanced Segmentation?
Advanced segmentation is a process of combining two or more audience segments into one robust segment. It filters your contact list and includes the best of all segments you have chosen into one rich profile.
Advanced segments greatly help in building long-lasting relationships with your customers because you can target different customers with one powerful and relevant message.
Of course, audience enrichment facilitates advanced segmentation as it continually updates the customer data. Through this, you will have error-free/accurate customer profiles which are made into perfect segments.
What Are the Benefits of Data Enrichment?
Enriching your customer data has many advantages. They are:
Eliminates Data Duplication:
Data enrichment is not only about adding extra data points but also to maintain accuracy in data. Since more importance is given to quality than quantity, eliminating irrelevant data is crucial.
And, data appending ensures to erase redundant data. Thereby maintaining accurate information about your customers.
Improved Audience Targeting:
You need to reach relevant customers with the right message for you to be on top of the game. Data appending helps you in enhancing audience targeting as it provides accurate and value-added customer profiles.
Hence, you will be able to personalize your ad campaigns and reach the right audience.
Regulates Ad Spend:
As you will understand your customers better, you will send ads of the products/services which they want and are looking for. Therefore, increasing the chances of conversions and reducing your ad spend wastage.
When you target the right audience with the right message, there are more chances of them making a purchase. And, CRM enrichment helps you do just that – improved conversions and an increase in ROI.
Enhanced Customer Experience:
Enriching your data helps in understanding your customer’s interests and goals better. So, you will be able to cater to them with the products/services they need.
And, you will also make your messages more personalized so that your customers get what they want. Thereby improving your customer experience with your brand. It, of course, will lead to loyalty expansion – one of the most critical stages in a customer journey map.
Today, there is a wealth of customer data but it’s important how you utilize it to your advantage. Through data enrichment, you will definitely be able to refine and add more value to your existing data. And, this is very much required in the current scenario.
It’s necessary to know your customers better for you to reach them with what they need. No doubt, it helps in improving your customer experiences and bringing your brand on top of the game.
Enriching your data allows you to maintain accuracy and become successful in any online strategy such as multichannel marketing and more.