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Why is data enrichment critical to improving customer experience?

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How effectively and efficiently a marketer can reach out to their audience with their products and services depends on how well they understand them. And to know their customers inside out, brands rely heavily on data, which enables them to get deeper insights into the consumer’s shopping behavior and allows the companies to create personalized and tailor-made offers for their patrons.

But brands cannot generally develop their marketing strategies on the first-party data available to them, as it does not give a complete picture of the consumer’s behavior. Although valuable, the first-party data will have gaps that need to be addressed before charting out a campaign plan. Hence, companies go with data enrichment, which helps them to improve the customer experience.

Data enrichment is the process of increasing the accuracy of the data by combining first-party data from internal sources with data collected from third-party external sources. This technique helps marketers learn more about their consumers and use those insights to produce effective communications, marketing, and sales strategy.

Many companies around the globe enrich their raw data to make more informed decisions. This blog will talk about the importance of data enrichment and why companies need this process to improve their customers’ experience.

Enhanced Relationship with Customers

Research has shown that when brands tailor their offerings according to the requirements of their customers, the engagement rate increases, resulting in better conversions. In addition, consumers form a liking for the brand, which understands their purchase behavior and only sends across relevant marketing content instead of spamming them with irrelevant promotions.

This level of accuracy in targeting the customer set is achieved through data enrichment, and organizations of all sizes depend extensively on this. The enriched data helps marketers to focus on improving the customer experience and keep the customer interested.

Focused Targeting

One of the most crucial factors that determine the success or failure of a marketing campaign is how well the brands target their potential customers. Marketers have realized that to be relevant in the consumers’ minds and convert them into repeat buyers, their target marketing strategy has to be on point. And to create a successful strategy, brands require data enrichment so that the data can be segmented effectively.

In-Market Buying Behavior

In-market customers are those who are actively looking to buy a specific product or service. The marketer who knows what their customer is looking for in the market receive an opportunity to reach out to them when they are most likely to make a purchase. Brands can get the in-market customer to complete the transaction with the correct communication and promotions.

When implemented efficiently, data enrichment can help brand marketers create a holistic customer profile, making in-market analytics possible. This leads to higher customer satisfaction and better return on investment for brands.

Improved Data Quality

Inaccurate data can lead companies to waste financial resources on advertising and increase customer dissatisfaction rates. Unfortunately, most companies keep working with redundant data because they are not aware of what data to remove. Sometimes they are not even aware of their data being incorrect. But with data enrichment tools, which automatically eliminate redundancies, the quality of the data significantly improves. That allows the marketers to chart out their marketing strategies confidently and connect with their customers based on their updated profiles.

As consumers are getting more and more options to shop, and brands are chasing them to get their attention, everything boils down to how companies are using the data and how valuable, and accurate their data is. Data enrichment is a tool to improve the accuracy of the data, but then how much value it adds also depends upon the quality of your first party and third party data set. However, companies have been using this technique considerably to improve customer experience and their revenues as well.