Data is crucial for marketers and marketing strategies, and data enrichment can take it to another level. But, you may ask, what is data enrichment, and why do I need it?
In this article, we will see what it is, why it is a game-changer for marketing strategies and why artificial intelligence can make it even more efficient.
What is data enrichment?
Before digging in, we should define what data enrichment is. It is a term that you may read a lot these days, especially after the latest news about third party cookies.
Let Technopedia help us with a definition.
“Data enrichment is a general term that refers to processes used to enhance, refine, or otherwise improve raw data. This idea and other similar concepts contribute to making data a valuable asset for almost any modern business or enterprise. It also shows the common imperative of proactively using this data in various ways.”
Data enrichment combines different sets of data from several sources, both internal and external ones. In this way, brands can collect and catalogue information in a more defined, helpful and precise manner.
Data enrichment systems can fix minor errors, fill the gaps in contact lists and more. However, it does not mean that all data enrichment is the same! There are several of them, but two categories are the most common, and we will see them right now.
Geographical data enrichment
As the name suggests, this kind of data enrichment is all about the acquisition of geographical information. For instance, we could add postal code, latitude and longitude, borders between two towns and more. It may look quite weird, but this data is crucial for marketing campaigns that rely on a local strategy – or even on a glocal one. It may help understand where to focus during a sale or spot the best shops to invest in a specific area.
Demographical data enrichment
On the other side, there is demographical data. This kind of collecting information is similar to the one we use for target analysis. For instance, some information required is marital status, annual income, educational level, number of children and more.
Why should you use data enrichment?
First, investing in data enrichment means that your brand can improve its ROIs, but it is not the main reason for it.
Data enrichment is helpful because it can bring value to several levels. Let’s see some examples of data enrichment usage.
Data enrichment improves customer experience
We know that customer experience is not anymore a “nice to have” for brands. It is, in fact, a necessity to create a trustworthy and virtuous company that lies in a solid relationship with its customers.
Moreover, customers have great expectations: brands should know what they like and even foreseen their needs! If it sounds impossible to you, then you should try to use data enrichment. Data provides unique and specific information about the customers. In this way, creating a more authentic and engaging experience will be more accessible than ever. The only thing that matters is the correct data!
Data enrichment makes targeted marketing more effective and efficient
If you want to sell and build a great fanbase, the most important thing is to know, ideally, the people you will engage. Knowledge has immense power because it helps to start projects with a vision and a plan.
Targeted marketing is more and more powerful and essential than old-style, one-size-fits-all marketing. Personalization is a keyword nowadays, and sometimes it can be hard to target your audience with the precision you would like. It is possible when you have complete access to all meaningful data—the whole picture.
Data enrichment creates more meaningful relationships and more loyal customers
The amount of value that data enrichment can give to customers is unbelievable. Thanks to enriched data, not only can you evolve personalization to another level, but it also helps to build a stronger relationship with your customers and prospects.
You can build strategies that lead to more meaningful and caring communication because you know better the people, creating a virtuous bond. It also improves customers’ nurturing, thanks to the valuable data-driven information you will be able to acquire.
Data enrichment: where to find data?
Now that we know what data enrichment is and which kinds of data exist, there is only one last question before exploring how we can use them. The question is, where can we find them?
A short answer may be “everywhere” because we can find several data examples in any data set. But what happens if we want to be more specific?
You can collect almost any data you want, but four of them are the most common.
In these cases, NLP, machine learning, and AI help understand the topic people are discussing and several other background elements. Such as sentiment analysis, gender, and even more details.
Interests of your customers
If someone said “know your enemy”, we add “but know your customer even better”! Collecting information about your customers’ interests will make your life easier and your campaigns more efficient.
You may see that they tend to use one or two of your most healthy products, or that they prefer to buy vegetables and a new pair of running shoes, a clear hint that they take care of their health, and they prefer a particular lifestyle. Clients aren’t here only to buy our products, but they also are people with different tastes, preferences and dislikes.
Personalization is always a good idea. A personalized CTA can convert 202% more than a regular one, according to Hubspot research.
So, why not use it?
The more you can create a deep connection with your customers, the better. If your customers feel connected with you to an emotional level, it will be easier to engage them if you show your true colours and care about what they care about.
Some pieces of information to know what your customers like and support? Events they attended, preferences and most beloved locations.
If you don’t know or can’t recall what your customers did in the past, you may want to start right now to collect information.
If you can keep track of your clients’ history of visits and purchases, you can create a more specific campaign for, let’s say, the people that have bought a particular item from your store in the last 12 months that live in your area.
Visit data patterns
Another crucial element to consider is how people behave when they visit your website. Thanks to your website’s analytics, you can learn how clients behave when they visit your website, before and after purchasing. How many times do they scroll the page before buying? How many days pass between the first visit and the adding to the cart? These bits of information can go a long way!
When it comes to data enrichment, the important thing is to collect all the data you can. Thanks to AI and algorithms, it will be easier to associate them. Data enrichment assures a more complex and comprehensive analysis of the information you have collected to use it in a more profitable way for your business.