Data Enrichment: 5 Things You Need To Know & How It Can Help Businesses

Data enrichment is a process that you use every day without realizing it. It is a process of gathering additional information about your customers that can help you build a more detailed profile of their behavior and preferences, which will ultimately improve your ability to understand and serve them better.

This is a powerful process for businesses to use, but not all professionals are aware of this. In this article, we'll explain what data enrichment is and how it helps you improve your business.

Moreover, you'll learn why it's important for specific industries, and what data enrichment tools are available in the market so you can build an effective campaign strategy that will increase sales performance by having better insight into your customers' preferences.

What Exactly is Data Enrichment????

Data enrichment is the process of adding new information to datasets. It's a way to correct errors, improve data quality and add missing data. Another term for this is "Data Appending."

For example, if you have a set of customer addresses but no phone numbers, names, or emails, you could use a data enrichment or data appending tool to add those missing sets of data.

It can be done manually or automatically, but usually for long lists or bulk data sets, running it on data processors such as bulk data append system works better since it will just take a few minutes or so to retrieve the newly updated list with all of the additional information.

How Does Data Enrichment Work????

This can be done in three different steps: human intervention, bulk processing, and API. Choosing to enrich data on your own is better for those who have a small list of data, and for minimal use; you can use different data enrichment tools such as people search and reverse search tools to find the contact details you are looking for.

The most popular method for data enrichment is to use an automatic data processor to fill in the missing sets of information and update your spreadsheet. This can be done by running your lists on third-party processors to add new information to your file. The processor will automatically populate fields with additional details such as an address, phone number, name, or email address.

Then there's also API. This option makes it easy to get to phone numbers from a street address, email address, name, and address as it updates databases automatically if the integrated API detects any changes, even without human intervention. It means that the chances of having outdated contact information in your system are almost impossible.

Businesses That Use Data Enrichment???

Automating data enrichment is critical in today's digital world. It allows businesses in several industries to continue operating. Here are five examples of business industries that benefit from using data enrichment tools.

Lending???

Credit scoring relies on data enrichment. Banks and other lending companies use third-party databases to gather information about their customers, which can help them detect opportunities for fraud or default.

To underwrite risk, you must use data enrichment techniques to determine the creditworthiness of your customers. This is especially true when working with digital forms. You can’t rely on trust alone when dealing with untested prospects. You need to gather as much information as possible to protect yourself from bad borrowers.

Fraud Prevention???

Businesses can reduce fraud rates by creating better user profiles. A good example would be appending an email address. This can help you lower the chances of fraud by knowing whether the owner of the email address is the same person you're dealing with, as well as checking if the email is valid or if it has any issues attached such as SPAM trap, toxic, or unknown.

Insurance Companies???

Insurance companies categorize their customers based on different data points, then enrich the specific dataset with information like your risk-related profile. Once they have all the info they need, they can provide relevant insurance deals or products based on your risk.

That can be through different marketing channels such as calls, emails, or direct mail. To do this, insurance companies need verified contact details of customers to deliver the deals and promotions successfully.

Marketing Agencies?

We all know how important precise details are for the marketing industry. One data input mistake can result in a higher bounce rate, dropped calls, or returned mails or parcels. Whether you do telemarketing, email, direct mail, or influencer marketing, correct data is what you need.

Marketers exist to increase sales, and if you are experiencing the problems mentioned above where you can't reach them, then how could you convert an engaged audience to paying customers? Of course, you can't. Getting the message out there is the first step to getting noticed, and if you are failing in that area, you need to check where you are lacking — correct data.

Retail???

The pandemic proved that businesses can thrive online while brick and mortar stores and establishments are closed due to lockdowns. This also means that payments, reviews, customer service, and tracking are done online. The retail industry could benefit a ton from data enrichment by ensuring that buyers are real and not scammers and that deliveries land on the right doorsteps.

Online stores such as Amazon, eBay, and other online shops require customers to fill in the information, but there is no guarantee that all of the information they provide is true. As a business owner, you must take action to collect payments and provide the best customer service. This two-way street measure benefits both parties, wherein the retailers get paid and the customer receives orders promptly.

Getting their contact details to assure you that they are real, as well as ensure that any inquiries, follow-ups, notices, and updates be given to them whether it's via a quick call or email, and the actual delivery arrives safely on their hands.

The Legality of Data Enrichment???

Although data enrichment is a big buzzword, it’s not as new as you might think. The concept has been around since the early 2000s and has been used in various forms by businesses ever since. Governments have had to step in and set up drastic precautions to protect user data, as the number of data breaches suffered by big organizations shows no signs of slowing down.

So if you're thinking about whether it is legal, yes it is. However, it depends on whether the third-party service you choose follows the standards and practices set by the governing bodies.

Conclusion???

Data enrichment is an investment in your business. You’ve worked hard to collect and store data, but it doesn’t do you any good if you can only use some of it. Data enrichment helps businesses get the most out of their data by adding context and structure to what was previously unstructured information.

Not only does this save time and effort during analysis, but it also gives businesses greater insight into their customers, operations, and products. This increased visibility leads to better decision-making that ultimately impacts customer experience as well as business performance across all areas of your organization — from marketing to operations to sales — so make sure to include it as an integral part of your business.

The best way to get started with data enrichment is to talk with a company that offers it, and that's something Searchbug can help you with! We've helped thousands of businesses all over America and you could be the next.

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