What is Data Enrichment?

Data enrichment is a process that improves accuracy by adding updated information and additional data to the organization’s existing data repository. In this way, you can base your business decisions on more solid foundations and have the opportunity to manage your customer relationships more effectively. To improve your communications, provide an engaging experience with special offers, and build loyal customer relationships, you need to embrace the process of enriching your data. In our blog post, we will explain the definition of data enrichment, its benefits and finally the comparison of data enrichment and data cleaning.

Definition of Data Enrichment

Data enrichment is the process of making the core customer data a business has more meaningful, accurate and reliable. This process includes the steps of cleaning, organizing, updating and enriching existing data sets. Its main purpose is to increase the accuracy of data, correct incomplete or inaccurate information, and improve data quality in general.

Enriched data becomes an important asset for every company because it is made more functional and meaningful. Most brands implement data enrichment processes on their raw data, so they can use it to make informed decisions.

The Importance of Data Enrichment

Vital to today’s businesses, data is used to determine marketing, sales and customer service strategies. This data plays a key role for business leaders, supporting the growth and profitability of organizations by forming the basis of every decision. It helps leaders make precise decisions based on facts and trends, thus strengthening business strategies by staying away from speculation.

The data enrichment process is not a process that you implement once and then abandon. Because customer data such as marital status, residence and income constantly change. Therefore, businesses should keep information up-to-date by constantly enriching data. Otherwise, as a business, you may offer your customers offers that do not interest them.

Now, constantly updating data has become very simple with technology. Manual data enrichment processes have been replaced by technology and automation. Data preparation tools and software have made this process very easy and fast.

Data Cleansing vs. Data Enrichment

Data enrichment is about adding additional data to strengthen your customer information. Data cleaning is the process of eliminating inaccurate or outdated data.

Data enrichment and data cleansing are integral parts of keeping the database healthy and up-to-date. Data cleaning is done first to make room for up-to-date and valuable information.

Data Enrichment Process

Customer information exists in a raw form, regardless of the source of data obtained from social media, site traffic or email lists. This customer data is stored in a data repository when collected and is often dysfunctional. Therefore, raw data is cleaned and organized before being enriched with data from external sources to add useful information.

After this stage, the data is made functional by adding new and valuable information through data enrichment. This process allows brands to effectively connect with their customers and gain deeper understanding of them.

Benefits of Data Enrichment

  • Provides cost savings.

Data enrichment helps you save costs by ensuring you don’t store information that doesn’t contribute to your business. This process enriches your internal data with information from external sources and creates value for your business. In this way, resources allocated for databases become available for other activities that have a positive impact.

  • Enables establishing meaningful relationships with customers.

Enriched data enables personalized communication for customers and provides the opportunity to create meaningful relationships. In this way, your business can create strategies that suit customer preferences and needs. Customers are more likely to buy again from businesses that understand their needs and serve them appropriately.

  • Increases success by providing targeted marketing.

Targeted marketing refers to determining a customer-focused strategy rather than a one-size-fits-all marketing strategy. Businesses need data enrichment to classify data effectively. In this way, they can apply targeted marketing successfully.

The following contents may also interest you;

What is Customer Data Integration?

What is Data Mapping?

What is an Integration Platform?

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