3 Use Cases for Enriched Data
Business users agree that their first-party data is one of their most valuable assets, but one that is limited without third-party data enrichment. Advanced analytics make it possible for business leaders to glean valuable insights from the information stored in their ERP systems, marketing automation databases, and website analytics.
The most powerful innovation is happening where data from disparate sources are being brought together to provide a richer and more complete picture of a company’s customers, market area, competitors, and product domain. With data enrichment, business leaders can benefit from the proposition that the whole is often worth more than the sum of its parts. Enrichment adds context; and in doing so, it creates new opportunities to generate business value.
Here are a few examples of how data enrichment is helping businesses to generate meaningful value.
1. Enriched customer data for marketing
One of the first industries to embrace the possibilities of data enrichment was marketing. Always seeking deeper understanding of customer behaviors and motivations, marketers use a variety of martech tools to gather data and analyze it.
However, leveraging data enrichment tools in the and martech stack enables a more agile marketing strategy based on a more nuanced view of customers and their behaviors. Data enrichment adds meat to the bones of a basic marketing strategy. It fleshes out customer profiles and helps marketers build spot-on buyer personas.
Marketers also use enriched data to segment their target audiences and craft campaigns personalized for each audience. This, in turn, elevates the customer experience, leading ultimately to more satisfied customers, loyal brand advocates, and higher revenue.
2. Property data insights for insurance risk
In the insurance industry, data enrichment provides valuable information about many of the details that impact risk. In the past, insurers took a coarse-grained view of an insured property’s location. By understanding some basic location information, they assigned an overall risk level for various hazards. They looked at things like the property’s postal code, proximity to the nearest fire station, and local crime rates to come up with an overall risk assessment for the property.
With geospatial data enrichment, however, insurers can develop a much more robust picture of an individual property’s risk of certain types of losses. Wildfires, for example, can affect different properties in dramatically different ways. Homes located near combustible vegetation are at greater risk, as are properties situated along natural wind funnels. The distance between structures, the type of roofing material, and even the relative elevation of combustible materials with respect to a structure can have a meaningful impact on risk.
Precisely curates the most detailed, accurate, and up to date risk and context data available for insurance. By enriching existing property data with contextual details such as building footprints, materials and workmanship, weather patterns, traffic, crime statistics, and more, insurers can develop a highly detailed picture of each individual property, resulting in the most accurate risk profile possible.
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3. Location-based insights for communications service providers
Telecommunications companies can develop a better understanding of their existing customers and prospective new customers through data enrichment. By understanding key demographic factors such as age, income level, and lifestyle preferences, telecom companies can more accurately target customers for upsell opportunities and reach prospects with the right messages at the right time.
Data enrichment can help telecoms to understand which kinds of life events might prompt an opportunity, such as a child leaving for college or empty nesters downsizing to a new home. Life events may indicate that a customer or prospect might be open to purchasing a new service or could indicate a higher likelihood of dropping existing services. Data enrichment provides a more complete picture that can guide telecoms in making the right investments for customer retention and new customer acquisition.
While these three use cases provide real-world examples of how data enrichment can be used to generate tangible business value, the possibilities are virtually endless. By combining existing data with accurate and up to date data from external sources, innovative businesses will undoubtedly find new ways to generate value.
Unfortunately, not all data providers are created equal. Anyone who has run more than a few marketing campaigns using third-party lists probably knows what it’s like to work with poor quality data. The same caveat applies to any data enrichment effort; the quality of the results is directly dependent on the quality of the source information.
Whether you are seeking detailed demographic and behavioral information about consumers in your target market, geospatial insights to drive site selection or marketing decisions, or developing a better understanding of your product portfolio and the factors that correlate with higher sales, Precisely can help. Our datasets can help support your data enrichment strategy to drive meaningful insights and identify value-generating opportunities.
To learn how you can unlock business value with data enrichment, watch our webcast: Enrich Your Data Your Way