In this competitive business world, it is important to retain the existing customers to survive in the market. You cannot risk losing loyal customers by failing to analyze the customer’s behavior pattern, geographic location, or market condition.
Have you ever sent a personalized email twice to the same customer, or worse, to the wrong customer? If so, it’s most likely not an oops moment. It’s bigger than that and could result in the loss of potential customers.
Every business decision is based on data. To derive valuable insights, you must have quick access to cleaned, updated, and enriched data. By incorporating the data enrichment process into the organization, you can develop successful business strategies based on facts rather than speculations.
The rising data-driven business world
High-quality, up-to-date data is the oxygen to any business; without it, it is difficult for a company to survive in the market. According to a Forbes article, 2.5 quintillion bytes of data are generated every day, with each person responsible for generating 1.7 megabytes of data. And therefore, getting a hold of all of the data is a daunting task.
Data is more critical than ever before, as every business strives to attract new customers while retaining existing ones. Specifically, to make up for revenue lost during the pandemic, analyzing every customer data touchpoint is essential.
Understanding the customer and developing a good customer relationship is critical to gaining a competitive advantage. However, to do so, you must have the most complete and detailed picture possible. Automated data enrichment enables you to achieve this in no time.
What is data enrichment?
Data enrichment is simply the process of updating your internal database with information sourced from trustworthy third-party sources. It is essential to improve the quality of information available. The vast majority of data obtained, regardless of its source, will be in raw form and stored in a data lake, which will be completely useless.
A simple example of the data enrichment process is enriching your internal sales data with third-party data captured from the advertisement team to understand the marketing campaign’s effectiveness. With an efficient data enrichment process, you would no longer wonder where your marketing campaign went wrong.
Impact of obsolete data on business
Data extraction is not a problem for most organizations because the sales team will fill the sales funnel with multiple data points obtained through digital marketing or one-on-one sales meetings. So you now have data access. But does this imply that your decisions based on the available data are correct? NO!
The information that your company’s sales team uses to fill the data funnel comes from various sources. It implies that the data may be repetitive or incorrectly labeled. As a result, the quality of your data suffers, potentially jeopardizing key business objectives.
To put it bluntly: What good is your contact list if your phone numbers and email addresses are no longer valid? How extensive is your client list if your best ones are listed twice?
Poor quality and out-of-date data not only affect the company’s financial standing but also affects customer loyalty. This is where the process of data enrichment comes into play. You will be able to create and target a larger pool of potential clients with enriched data.
Benefits of adopting data enrichment
In this data-driven world, data enrichment is a key component to your organization’s success. Here are the few benefits of implementing the data enrichment process in your organization.
Targeting the right customer
Targeting and converting clients into customers is where the company’s success lies. There are numerous market players in today’s world, giving consumers a plethora of options for selecting a single product. In such a case, it is crucial to understand the target audience.
Data enrichment solution automates the process of creating a “ golden customer record “ containing all the relevant data available about the customer. Enriched data enables businesses to segment the customers and nurture them with value-driven data, thus increasing the ROI for that customer.
Reducing your investment in managing data
According to a Forbes article, “the average cost of data management is 3.5 percent of revenue,” which is a significant figure. However, most organizations only use a droplet of their data, leaving the rest unused.
Data enrichment solution saves you money by supplementing your internal data with external data sources regularly. As a result, you do not need to keep data that is no longer useful to the business. The money spent on managing and storing massive amounts of data could be used to fund other critical business processes and drive innovations.
Improving data accuracy
A single source of data will never be sufficient to understand a customer completely. When data is collected from multiple sources, chances of double data entry and incorrect labeling are high. According to Gartner’s research, 40% of enterprise data is inaccurate, incomplete, or unavailable, causing businesses to fall short of their data-driven objectives.
Data enrichment not only aids in the collection of all the available data but also validates them. Enriched data raises the confidence score of the data among the stakeholders, allowing it to be trusted and used to make important business decisions.
Organizations should treat data enrichment as a continuous business process rather than a one-time task to succeed and survive in the market. Keeping all the information about the customer up to date is quite a time-consuming task, especially for companies with an extensive database.
We at Xtract.io, with our data enrichment solution, ensure that your organization has updated customer data which helps you enhance customer engagement. With our AI-powered data enrichment process, we help you achieve revenue targets without worrying about inaccurate or duplicate data.