Data Enrichment: How To Learn More About Your Customers And Increase Their LTV

Customer information is a tool for the development of any business. It helps to bring interaction with customers to a new level, learn about their desires and needs, automate workflows and, ultimately, increase revenue and profit.

In the article, we will tell you what the enrichment of customer data is, how this process takes place and how to use it to work effectively with the audience.

What is data enrichment and what is it for?

Data enrichment is the expansion of existing customer information by supplementing missing or incomplete information. In recent years, the trend towards personalization has been strengthening in the world: users expect relevant content from companies based on their preferences. Businesses, in their turn, from small companies to large players, are trying to implement this approach and make money from it.

Personalization works, on the one hand, very simply: for example, users run out of some product they need – face cream, lenses, or dog food. And suddenly they receive an e-mail or a message in the messenger that there is a big discount on this product now.

What personalization gives:

  • customer loyalty because they feel caring and a deep approach to their needs and pains;
  • additional motivation to purchase for the clients, since they are offered exactly what they need, and not random goods or services;
  • adjustment of the assortment based on consumer preferences: we can say that the customers “vote” for the selected product with their money. Having statistics of real purchases, you can make an assortment that will be actively sold out.

But on the other hand, to have the ability to closely contact customers (both regular and potential), it is necessary to own impressive databases – telephone numbers and emails. Data enrichment helps in this, because knowledge of your customers, gives more tools for communication, and more accurately provides information.

How to collect and enrich data

Today, tools for data collection and enrichment are available not only to large companies with extensive IT capabilities but also to small businesses. For example, both large car dealers and small wedding dress salons are now starting to cooperate actively with top data enricht services. Let’s see now in detail how it happens.

Data acquisition can be divided into two types:

  • getting new data – Data Sales;
  • enriching the existing customer base.

Data sales

The method helps to attract new customers about whom you do not have any information yet. The essence of the technology is that you can get the phone numbers of those visitors who were just visitors on the site, but did not leave any information about themselves: they did not fill out feedback forms, did not order a call, and did not even put anything in the basket.

How it works: A business installs JavaScript code on the website – it will take no more than 5 minutes. As soon as the code appears on the resource, cookie matching starts working: it compares the cookie of the site visitor with big data to check whether there is a phone number or email address for this cookie.

As a result, the business gets a base with new potential customers. Further, this data is used for phone calls, SMS and email newsletters, and push notifications of chatbots. And also when setting up targeted advertising.

Data Enrichment

Surely you know that it is cheaper to work with a client again than to attract a new one. Therefore, if you already have a wide customer base, it is much more profitable to work with it than to “pour” budgets to attract new customers. Thus, LTV (lifetime value) increases – an indicator that means the amount of money that the client will pay for the entire time of cooperation with the business.

To be constantly in the client’s information field, you can use various strategies, for example, event marketing – mailing with promotions for the holidays. But, as a rule, not all numbers have email addresses in the database. In this case, you can increase its capacity, that is, enrich it with the missing data.

How the enrichment takes place: the client transfers the existing database with telephone numbers to the contractor, who, based on it, searches for matches of the transmitted numbers with emails. After the maximum quantity of matches is found, the customer company receives a database with supplemented email addresses. This way you can increase customer data by 25-30%.

What results can be obtained by enriching your data

The main result of enriching the database is an increase in its capacity by 25-30%. Phone numbers are a solid attribute with which you can work productively: call, send messages, and target ads. This is a much more effective, targeted, and specific method than just showing ads, for example, on social networks. The same can be said about email addresses.

The technology of identifying numbers and enriching the existing database is relevant for any business, regardless of the scope and size of the company: from a veterinary clinic to an international construction company, from private apartment repairs to a large car dealer.

Conclusion

Relevant offers and a personalized approach can be great tools for sales and communication with clients. The more information you have, the better offer you can make. Therefore, data enrichment is a popular and actively developing service. It allows a business to quickly obtain a large amount of customer data without much technical effort. Without hiring additional staff, but simply by connecting a contractor to the work.

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SocialH Design blog is a place for Designers and Developers. We provide high quality articles and web resources in web design, social media, SEO, wordpress and blogging.
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