Data is becoming increasingly valuable for businesses today. In 2022, if you have the right data and analytical tools, you have the tools to succeed. One way that you can improve the quality of your data is by using data enrichment. This is a process that allows businesses to blend multiple different data sources together.
This creates a unified source that is more accessible and usable to its constituents. Typically, this means combining internal data with data found from external sources.
Certain data analytics software can show you patterns that are basically impossible to discover otherwise. This technology has capabilities far more powerful than a human.
Data by itself is meaningless. However, when you are able to analyze and manipulate your date to guide your business decisions, that is when you start to see significant improvements to your bottom line.
Table of Contents
The Benefits of Data Enrichment
This process helps organize and automate your date for actionable use. Data enrichment allows brands to augment their existing data sets and raise the quality of their business decisions.
Yet, it does not come without its caveats. Just because you have strong technology around you, it does not mean that you will thrive off of your data.
Your data analytics will only ever be as strong as the raw data that you input. If you have poor, inconsistent data, you’ll have unreliable results, no matter how much data enrichment you try to implement.
Poor data collection can result in misguided conclusions that hurt your company. This can be especially damaging if you do not realize your mistake for some time.
Having enriched data allows you to conduct a more granular analysis than usual. You’ll have a more in-depth picture of your target audience and how they behave. You’ll also be able to research your competitors and their target audience.
Another benefit of using data enrichment is that it reduces the need for taking in more data. When you have enriched data, you can ask your customers for less information. For instance, during the signup process for a newsletter or website, you do not have to ask them what state they live in; you can find this out using tracking technology.
Unlimited Types of Data Enrichment
There are an innumerable number of data enrichment types. There is no single dataset that can provide a full, holistic overview of a brand’s consumers.
To correctly understand your customer base, you have to combine several datasets into one enriched source. More businesses today are introducing greater levels of personalization, namely in email blasts and text promos. Data enrichment helps you compete with these companies.
There are also an unlimited amount of ways to use data enrichment: you can use this process to increase your sales and ROI, or you can use it to improve the user experience on the website. It can be used to help evaluate the performance of your workers and the efficiency of your business model. The possibilities are truly endless.
When you look at your demographic data in regards to your existing data, you will be able to build a fuller picture of exactly who they are.
Before you go crazy and start inputting values though, you should identify exactly what you want to achieve with your data. Why do you want to know those things about your customers? How can you capitalize on that information and use it to your advantage? Consider these questions before you start analyzing the numbers.
How does this look like in a practical sense? Well, imagine that you’re operating a bank. Using enriched data, you can access databases of information that tell you about users’ credit ratings. With this information in mind, you can decide which consumers should be provided with a credit card offer and which ones should be excluded.
Geographic data is the information regarding the geographical location of your users.
This could include values like ZIP codes, longitude and latitude coordinates, and home addresses.
This type of data is fairly common to come by. Not only is it fairly cheap to acquire, there are a ton of businesses that exist to provide such data.
When you have access to the geographic data of your customers, you can offer them a more personalized experience. From the moment they walk into the door or log onto your website, you will know exactly how to cater to them.