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4 Reasons Why Data Enrichment Needs to Be in Your 2021 Business Strategy

At your disposal are data enrichment and data augmentation; the former a merging of third-party data from an external source together with your existing first-party database, and the latter a technique to increase the volume and quality of data by adding in clean information from external sources.

With each duplicate record costing companies between $20-100, ensuring your database is accurate and free of errors heralds more than just happier customers. In this article, I will explain how you can stamp out costly losses and cleanse your existing database, reducing duplicates, errors, and inaccuracies to enhance your proposition to your customers.

1. The foundation of business development lies in good quality data

To create contextual intelligence, you first need to feed in clean fuel to your database. This first-party data can then be augmented with additional data layers such as demographic, behavioral, or geographic information from external sources, adding to the quality of your records.

The stacking of data will help you build a more robust picture of your consumers and their habits, affording you greater insights into their behaviors, which can aid better personalization efforts. Marrying data that has been parsed, formatted, and enriched helps reduce duplicate records, letting you work towards the goal of obtaining one golden record for each of your database entries.

2. Demographic records are the most likely to be out of date if your first-party data is not regularly updated and maintained

Audience Play defines this data as considering qualifications, marital status, employment, income, credit score, and children, among others.

When you consider personalized marketing, reluctance to update your database's behavioral elements in lieu of something more 'important' can be a costly mistake. You run the risk of targeting a customer with entirely the wrong product or service based on their perceived demographic status - which could be years out of date - potentially leading to loss of leads.

In an ever-changing business landscape, twisting and turning to keep up with the evolving pandemic, it is vital to retain customers to avoid loss of sales. What's more, it will improve the customer's journey as they will receive personalized offers suitable for their lifestyle, enhancing their experience as your customer.

3. A customer's behavioral insights can help to enrich your data further

These can be counted in page views, email sign-ups, past purchases, and lost shopping carts. Captured through your web analytics, combining this data with existing customer records is a great way to augment your database with known habits.

Going further than before, you can then segment your audience based on their interests or habits fueled by your data collection on a granular level. For example, if an email flow keeps misfiring and customers lose interest at the exact same point, you can use this information to spot those moments and then lead those users on a different journey.

Behavioral insights enable all sectors of your business to make data-driven decisions, be that in marketing for personalized communications right the way to product development if a term is repeatedly searched for and gleans zero results. 

4. Location data is arguably the most essential facet of data collection

Location data lets companies know who they target with localized marketing based on consumers' proximity to stores or venues. This can provide location-based insights that would otherwise be unavailable.

If your records have been initially entered by the user, you may fall victim to the biggest cause of data error - human input. Requiring your user to fill in a form with free-type boxes is asking for trouble. A simple and cost-effective way to mitigate these types of mistakes is to integrate existing technology, like Loqate's Capture solution, real-time address search and auto-complete powered by the most comprehensive global location data on the market.

Loqate curates data from every country and territory in the World and boasts a 70% reduction in failed deliveries. Loqate helps you improve your data quality by ensuring data is correct at the point of capture, as well as verifying address data existing in your internal systems. Our type-ahead technology is touted as the most comprehensive solution on the market as the only provider to curate a global database from official postal authority, mapping, geospatial data sources, and other relevant data sets for pinpoint accuracy.

Bad data can cost you - literally.

Experian reports that 77% of businesses believe their bottom line is affected by inaccurate and incomplete data. Make data augmentation a priority in your 2021 strategy to ensure your customer records are as accurate as they can be to help you enhance your customer experience in a time where it is needed the most.

Enrich your data to ensure correct address information globally. Learn more about Loqate's Global Partner Program and our address verification solutions here.  

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