Several companies invest large amounts of revenue and resources into data analytics and data insights to better understand their customers. However, many companies overlook the importance of data enrichment, and maintaining data quality, and could be losing out on sales leads as well as customer engagement.
Data enrichment, also referred to as data augmentation, is a process that refines, improves, and updates raw data by combining different data sets. This process helps companies keep their customer profiles up to date by maintaining accurate phone numbers, e-mail addresses, physical addresses, and personal details. According to Data Science Central, organizations recorded up to 50% growth in sales and customer satisfaction as one of the many benefits of data enrichment. Investing in high-quality data enrichment is crucial and somewhat overwhelming, so we’ll help you out by outlining different ways you can use data enrichment to understand customer behavior and boost sales below.
Types of Data Enrichment
Demographic: Demographic data enrichment is a common form of data enrichment that allows businesses to target specific demographics and tailor their advertising for customers relevant to their brand. Companies enrich customer profiles with information such as marital status, credit information, household income, type of car driven, etc. Companies take this wealth of personal information and use it to personalize messaging, enhance their targeted customer base, and customize their advertising to fit their customer’s preferences. Another key benefit of demographic data enrichment is the ability to predict future buying behavior based off these data sets.
Behavioral: Behavioral data enrichment is a form of data enrichment that allows companies to gain a better understanding of their customer’s patterns, habits, and interests. Companies are able to monitor every customer’s purchase path, which gives insight into key events that lead to a sale. This information usually includes shopping carts, browsing history, subscriptions, and real-time user behavior. Companies leverage this data to create customized advertising campaign designs to convert users into customers.
Geographic: Geographic data enrichment is a form of data enrichment that allows businesses to gain deeper insight and context into specific locations and areas of interest. Companies can tailor their messaging for residents who live in certain areas and market services to boost sales. Geographic data enrichment ensures that customers see appealing advertising related to their time zone, country, zip codes, etc. This allows companies to create valuable infographics, spatial patterns, and visual maps packed with information pertaining to lifestyles, habits, and characteristics of customers in certain locations.
Improve Data Accuracy
Data decay is a frequent problem many companies face especially when data decays at an average rate of 30% per year. Customer contact information constantly needs to be updated or else it becomes virtually useless in less than a year. To enrich data sets correctly, you need to make sure you combine values and attributes from different data collections. Data enrichment can enhance your email contact list, which in turn leads to more sales and consistent messaging practices. Effective data enrichment procedures will keep your relationship with customers operating smoothly and you won’t have to worry about making simple mistakes such as sending an email twice to the same person.
Optimizing Customer Service
Customer service is an essential part of any business wishing to help their customers out as well as understand the psychology behind their behavior. Data enrichment helps ensure optimal customer service by assisting with the right types of questions to ask their customers, the right tone, and the type of phrasing. Several websites use chatbots that run on machine learning platforms and artificial intelligence. These chatbots are empowered and enriched by the data fed into their systems. This allows companies to run more efficiently, interact with their customers in a more personable fashion, and obtain valuable feedback.
Implement Data Enrichment Tools
There are several data enrichment tools available for businesses looking to take their data to the next level. Clearbit is a popular tool that helps companies identify anonymous users and potentially convert them into customers with one click. The Crunchbase Enterprise tool is a great option for startups and provides data insights that can be utilized as a reliable market research tool as well as improved email personalization. LeadGenius uses a combination of automation and human touch, which leads to solid sales prospects. A lot of these tools can take the weight off a company’s shoulders by ensuring high quality data and the ability to boost sales.
Conclusion
With so many people online changing phone numbers, moving to a new address or getting a new email, it can be hard for companies to keep up, especially if they don’t have the proper data enrichment practices in place. Data enrichment takes care of this issue whether it’s through machine learning platforms or advanced algorithms. Another common issue companies run into is understanding their customer’s behavior, lifestyle, and habits. Looking into the different types of data enrichment such as behavioral, geographic, and demographic could help a company make more informed decisions as well as target the right customers for their business. Either way, data enrichment is essential in this digital age, and can help you gain deep insight into your customers and boost sales when implemented properly.
