What is Data Enrichment?

Data is the lifeblood of contemporary businesses and is used to formulate marketing, sales and customer service strategies. It is at the core of every decision business leaders make to promote the growth and profitability of their organizations. Data empowers leaders to make precise decisions based on facts and trends rather than speculations.

Excellent business leaders use data wrangling to clean, structure and enrich data for decision making. Many forward-looking organizations are acknowledging that data has become diverse and unstructured and hence the need for data wrangling. Data wrangling has six steps including discovering, structuring, cleaning, enriching, validating, and publishing. Here, we will examine the fourth step of data wrangling: data enrichment.

What is Data Enrichment?

Data enrichment involves amalgamating first-party data sourced internally with disparate data from other internal systems or third-party sources. The enriched data becomes a valuable asset for organizations, enhancing its usefulness and insights. Many brands undertake data enrichment on their raw data to enable informed decision-making. In 2018, data enrichment saw an 80% growth, with further expansion projected for the current year.

Initially, customer data exists in its raw form, regardless of its origin, such as site traffic, social media interactions, or email lists. Once collected, this data resides in a central repository, largely devoid of utility. Through the process of cleaning and structuring, raw data is refined before being enriched with external data, thereby augmenting its value. Data enrichment facilitates a deeper understanding of customers and provides invaluable insights into their behaviors and preferences. Various methods exist for enriching data, with one notable example being the enhancement of internal sales data with third-party advertising data to gauge advertising effectiveness.

Benefits of Data Enrichment

Data enrichment offers a multitude of advantages, rendering it a robust infrastructure for companies.

Cost savings of Data Enrichment

A study by Global Databerg reveals that managing one petabyte of data costs organizations approximately $650,000 annually, despite only utilizing a fraction of this data effectively. Data enrichment facilitates cost savings by ensuring that only relevant information is stored, thus reallocating funds from data storage to activities with a direct impact on profitability.

Data enrichment fosters meaningful customer relationships

Enriched data enables personalized communications, enhancing the likelihood of meaningful customer relationships and business opportunities. By leveraging relevant customer data, businesses can tailor communication strategies to align with customer preferences and needs, ultimately increasing customer satisfaction and loyalty.

Data enrichment maximizes customer nurturing

Data enrichment facilitates the identification of customer segments ripe for nurturing. By providing value-driven insights, enriched data empowers businesses to tailor their approaches effectively, thereby fostering stronger connections with customers and driving potential purchases.

Data enrichment boost successful targeted marketing

As businesses recognize the inadequacies of one-size-fits-all marketing strategies, targeted marketing emerges as a critical approach. Data enrichment plays a pivotal role in this process by enabling effective data segmentation, allowing businesses to deliver personalized and impactful marketing campaigns.

Get greater sales with data enrichment

Data enrichment ensures the maintenance of clean and accurate contact lists, thus optimizing sales efficiency and boosting return on investment. Furthermore, enriched data provides opportunities for cross-selling and upselling, leveraging comprehensive customer insights to drive sales growth.

Eradicate redundant data with data enrichment

Redundant data poses significant costs to organizations, leading to revenue loss, customer attrition, and reputational damage. Data enrichment tools, such as Trifacta, help eliminate redundant data by addressing data duplication issues, thereby enhancing overall data quality and organizational efficiency.

Data enrichment improves customer experience

In today’s competitive landscape, customers expect personalized experiences from brands. Data enrichment enables businesses to anticipate customer needs and deliver relevant, tailored interactions, thereby enhancing the overall customer experience and fostering brand loyalty.

Keep data enrichment process ongoing

Similar to other data wrangling procedures, data enrichment is not a one-time task but an ongoing process. Customer data is dynamic, with variables such as income levels, marital status, and addresses subject to constant change. Neglecting continuous data enrichment can lead to irrelevant information and offers being provided to customers. Fortunately, advancements in technology have streamlined the data enrichment process, making it faster and more efficient through the use of data preparation tools and software.

A robust data enrichment process is indispensable for the success of brands navigating the contemporary data-driven landscape. To derive maximum benefit from data, it must be actionable, value-adding, and easily interpretable—qualities that data enrichment inherently provides. As businesses may derive different advantages from data enrichment, it’s crucial to select the appropriate strategy that aligns with specific business needs and objectives.

Designer Cloud benefits businesses by offering efficient data enrichment at scale.

Alteryx Designer Cloud stands out as a premier solution for data preparation, offering comprehensive capabilities ranging from data wrangling to data enrichment and cleaning. With its intuitive interface and robust features, Designer Cloud empowers users to seamlessly blend disparate datasets from various source systems and assess the quality of enriched information efficiently.

Moreover, Trifacta ensures that businesses maintain data security and uphold customer privacy throughout the data enrichment process. By monitoring changes in data quality and source, Trifacta enables organizations to prioritize security while enhancing the value of their data assets.

As a leading authority in data preparation, Alteryx provides a suite of tools within Designer Cloud to facilitate seamless data enrichment. Users can leverage features such as unions, joins, lookups, and aggregations to enrich their datasets quickly and accurately. By harnessing the power of Alteryx Designer Cloud, businesses can elevate the value of their data assets and drive informed decision-making.