It is essential for businesses to have access to customer data to operate effectively. The more complete and precise this data is, the better the business can understand customer needs. However, the internal data held by businesses may not be sufficient in providing comprehensive information. Relying solely on internal data may result in missing or incomplete information. Therefore, businesses need to collaborate with third-party organizations to perform customer data enrichment.
So, what exactly is customer data enrichment, and why is it necessary for businesses? What are the advantages of this process? In this article, we will explore these questions in detail.
What is Customer Data Enrichment?
Enriching customer data involves combining pre-existing customer data held by a company with additional data obtained from external sources, such as third-party entities. For instance, if a business has information about their customers’ shopping habits but lacks knowledge about their preferences, origin, and interests in particular brands, they may acquire supplementary data from third-party providers to fill these gaps. A report from Acumen Research and Consulting indicates that the global market for data enrichment is projected to expand from USD 1.7 billion in 2022 to USD 3.5 billion in 2030.
Enriching customer data enables businesses to gain a better understanding of customers’ wants and needs, improve the customer experience, and tailor sales strategies to suit different industries and segments, thereby expanding their customer base.
Why Businesses Need to Use Customer Data Enrichment?
Enriching data involves enhancing internal business information with relevant and important details obtained from third-party sources. These sources collect data from various channels and use it to supplement any missing information. Furthermore, data enrichment can also update outdated data with more current information.
The addition of B2B data can provide more comprehensive information about existing customers, as well as potential customers. This information can be used to assess qualifications and create tailored email messages.
Benefits of Customer Data Enrichment for Businesses
By enriching customer data, businesses can better understand their customers, allowing them to design effective marketing strategies. Here are some benefits businesses should be aware of:
Increasing revenue
Businesses can make their marketing strategies more effective by utilizing both internal and external data. This includes creating customized campaigns for different consumer segments and delivering more accurate advertising messages.
Furthermore, this data can also be leveraged for enhancing existing products or developing new ones, as well as creating sales plans.
Facilitating Customer Acquisition
Data enrichment helps businesses create more detailed consumer personas and verify whether the consumer profiles they target are accurate or not.
In addition, businesses can also create better customer acquisition strategies by interacting with the right people at the right time.
Reaching new segments and markets
Data enrichment is a tool used by some businesses to explore new markets or expand their campaigns. By incorporating third-party data into their databases, businesses can analyze it to gain insights that are similar to those of their target consumers. This approach helps businesses to identify and discover new markets and segments by recognizing patterns.
Increasing opportunities for upselling and cross-selling
The combination of internal and external data provides information about consumer behavior patterns. This information is useful for businesses to understand the types of consumers who can be targeted for premium products.
Reducing Customer Churn
Businesses can reduce customer churn by studying specific behavioral patterns of customers experiencing it and taking action at the right time to minimize it.
Get Comprehensive Consumer Data from LOKASI Intelligence
Businesses can obtain comprehensive consumer data through LOKASI Intelligence. LOKASI is a geospatial analytics platform equipped with mobile data, providing detailed information about consumer behavior and preferences from various locations.
By using this data, businesses can segment consumers, design more effective marketing strategies, and make better business decisions based on a deeper understanding of consumers.
Learn more about how LOKASI Intelligence can help businesses by contacting via email: [email protected] or WhatsApp: 087779077750.
FAQ
What is data enrichment?
The process of data enrichment involves merging internal data with external data from third-party sources to supplement and enrich company data.
What is customer data enrichment?
Customer data enrichment is the process of merging existing customer data within a company with additional data from external sources, such as third parties.
What are the benefits of Customer Data Enrichment?
The benefits of customer data enrichment for businesses are increasing revenue, facilitating customer acquisition, expanding reach to new segments and markets, increasing up-selling and cross-selling opportunities, and reducing customer churn.
