Data Enrichment 101: What, Why, How, and When

Think of a scenario where your database contains 15,000 contacts, out of which only 3,000 have complete information. Does this sound similar? Are you wondering how to get the details of the remaining contacts? The answer is data enrichment services.

The first step to scaling business revenue is scaling intelligence. And, data enrichment does so by filling data gaps that prevent segmentation, personalization, and scoring. In other words, data enrichment helps business leaders fill in the blanks with accurate, up-to-date information, rather than relying on their gut for decisions.

Businesses that enrich their databases before scaling need not do manual research or suffer from inconsistent messaging. The benefits of this process are endless. But first, let’s get the basics cleared. This blog explores the process of data enrichment, common types of data that can be enriched, its benefits, how to get started, and when is the right time to do that. So, let’s get started.

What Is Data Enrichment?

Data enrichment is the process of enhancing a company’s existing database by adding missing information taken from trusted external resources. Or let’s put it this way, that data enrichment is a makeover process, where new layers of information are added to the company’s current records.

Suppose you have a lead record with just a name and email, and you want their mobile number for a campaign. In such a scenario, the ideal way is to outsource the data enrichment process. The professionals help you enrich the contact with phone number, age, job title, company, industry, social media profiles, and technographics. This converts basic contact details into detailed profiles that drive meaningful engagement. That said, let’s explore some of the common types of data that can be enriched:

Ø  Demographic Data: Age, gender, income, etc.

Ø  Firmographic Data: Company size, revenue, industry, location, etc.

Ø  Technographic Data: Software and technologies used by a company

Ø  Behavioral Data: Purchase history, website activity, engagement scores, etc.

Ø  Contact Data: Phone numbers, verified email addresses, social handles, etc.

Understanding this helps leaders know what type of data enrichment do they need. Having figured out the right strategy, you can partner with a data enrichment company to get complete and accurate information. And, after exploring what data enrichment is, let’s explore why businesses should opt for this in the next section.

Why Should Businesses Opt for the Data Enrichment Process?

The fact that the data enrichment solutions market size is projected to reach USD 4.58 billion by 2030, growing at a CAGR of 10.1% itself shows that the process adds value to the business. It positively impacts sales, marketing, and other areas in the following ways:

A.    For Marketing Teams

1. Hyper-Personalized Campaigns

Personalization in offers, products, and services is the baseline expectation of customers today. The data enrichment process empowers businesses to go the extra mile by providing complete details of their customers, using which they can offer hyper-personalized content.

2. Better Lead Scoring

Data enrichment enables marketers to prioritize leads based on firmographic and demographic data, not just engagement. So, instead of wasting time on cold calling, your marketing team can directly focus on prospects with genuine potential and increase conversion rates.

3. Accurate Customer Journeys

Yet another way of data enrichment is beneficial for marketers is that the complete details help them better understand their audiences. Using this information, marketers can create content that truly resonates with them. Apart from this, B2B data enrichment enables precise targeting that resonates with specific buyer personas.

B. For Sales Teams

1. Higher Conversion Rates

Data enrichment equips sales reps with context and other minute details that matter to customers. Using this information, sales reps can have more relevant and meaningful conversations. For instance, knowing a prospect’s technology stack or recent funding rounds creates natural conversation starters, ultimately increasing the chances of conversion.

2. Shorter Sales Cycles

It doesn’t matter if your CRM has 10,000 contacts when the key information, such as email ID or phone numbers, is missing for, say, 6000 of them. CRM data enrichment not only fills the gap but also eliminates time wasted on dead-end leads. Thus, the sales team can easily identify high-value, qualified accountants rather than wasting time on cold calls.

3. Better Prospecting

You can sketch out your ideal customer profile based on their similarities. Moreover, pattern recognition becomes possible when your database contains complete profiles. Data enrichment aptly serves the purpose by providing complete and accurate details, and helping sales reps find new leads that look like their best customers.

C. For the Entire Business

1. Enhanced Customer Experience

Customers appreciate it when they get support in exact terms of what they are looking for. Data enrichment is just the right business tool for that, enabling brands to provide tailored help based on customer profiles and usage patterns.

2. Making Informed Choices

Make strategic choices based on a complete and accurate view of your market and customers, powered by enriched data. Based on this, businesses can find gaps in the market, unlock new revenue streams, carve a unique niche in the industry, and remain competitive.

3. Improved Data Hygiene

During the data enrichment process, missing entries are filled using trusted resources, and outdated information is replaced by up-to-date data. This improves data hygiene, which in turn helps reduce bounce rates and wasted spend.

These benefits multiply over time as the enriched database grows. And, to reap these benefits, businesses should outsource data enrichment services to specialized providers. But for the ones attempting to build solutions in-house, here’s how to get started with data enrichment. Let’s discuss this in the next section.

How to Get Started with Data Enrichment?

Although enriching data is no rocket science, it requires a structured approach that must align with your business objectives. Begin by identifying your goals, auditing the existing database, and choosing the right service provider. Then run a pilot test and add the enriched dataset. These steps are discussed in detail here:

Step 1: Know Your Goals and Use Case

There is no second thought that the data enrichment process improves the value of existing assets. However, this is not for every business, as it can be very overwhelming. So, to figure this out, leaders should know what problem they are trying to solve. They should define the outcomes, such as improving leads or spotting upsell opportunities. This clarity guides the enrichment strategy and helps measure success.

Step 2: Audit Your Existing Data

Having figured out goals and use cases, the next step is to audit the existing database. This includes spotting empty fields and inconsistent data. The results show gaps and help prioritize which data elements deliver the highest value when enriched.

Step 3: Choose the Right Enrichment Provider

You have mainly two ways to enrich data. It can be done either in real time or in batches. API-based enrichment lets you upload the entire list. And the important factors to be considered include data sources, coverage, accuracy, ease of use, and cost. Not to forget compliance with GDPR and CCPA.

Step 4: Run a Pilot Test

Start with a small, specific segment of your data. Enrich all leads from the last quarter. After that, analyze the results against your goal from Step 1. This controlled test identifies issues before full deployment.

Step 5: Integrate and Automate

Now, to get the enriched data, connect the tool with your CRM or marketing automation platform. Real-time enrichment processes new data as it arrives. For example, when a form is submitted. Automation ensures consistency and reduces manual work.

Following these steps creates an enrichment program that scales with your business. Many organizations find that partnering with a specialized data enrichment company accelerates deployment and reduces technical complexity.

When Is the Right Time for Data Enrichment?

As stated earlier, data enrichment is not for every business. Too many details can create information overload. As a result, decision-making becomes difficult. So, recognizing the right moment to implement enrichment saves time and maximizes return on investment. Wondering what these are? Here we go:

1. When Your Conversion Rates Plateau: Data enrichment is the right thing to do if your basic tactics are no longer yielding growth. That’s because enrichment gives the additional context needed to break through performance ceilings.
2. When You’re Launching a New Product or Entering a New Market: Deeper insights are required to foray into new adventures and into a new audience. And, enrichment helps reveal characteristics of unfamiliar buyer segments.
3. When Your Data is Stale: If you haven’t cleaned your data for over 6-12 months, then you must go for data enrichment. This is because details like contact information, job titles, and company details change constantly.
4. When You’re Scaling Operations: What worked for 100 customers won’t work for 10,000. You need scalable, intelligent processes that maintain quality at volume. And to ensure the operations are running smoothly, leaders need insights. These are best provided via data enrichment.
5. When You Notice High Bounce Rates or Customer Churn: This can be a symptom of poor data quality and mistargeting. Do not overlook this or find loopholes in your strategies. Rather, go directly for enrichment. This is because the process corrects inaccuracies that damage deliverability and relevance.

These triggers indicate that your current data infrastructure cannot support your growth objectives. Acting on these signals prevents wasted resources and missed opportunities. Following a few best practices while avoiding common mistakes can help businesses make the most enriched data.

What Are the Best Practices and Common Pitfalls to Avoid During Data Enrichment?

Making the data enrichment initiatives successful requires following proven best practices while avoiding common mistakes. Let’s explore both the best practices and common mistakes one by one in detail here:

Best Practices

With these practices, you can be assured that your enrichment process efforts deliver the desired value. These include setting up a clear goal, prioritizing data privacy, and focusing on data hygiene. Let’s take a closer look at them:

1. Start with a Clear Goal: Don’t enrich data just for the sake of doing it, or just because it offers huge benefits. Instead, make sure that every appended field adds value to the business, which can be in terms of cost or efficiency, or both.
2. Prioritize Data Privacy and Regulatory Compliance: Always partner with trusted data enrichment service providers and be transparent about your data practices. Non-adherence to laws creates risks that outweigh any benefits.
3. Focus on Data Hygiene: Do not confuse data enrichment with the regular data cleaning schedule. Remove duplicates and standardize formats before adding new information. And that’s how you get complete, updated, and accurate data.

Common Pitfalls of Data Enrichment

The data enrichment process is not without some pitfalls, neglecting which can be harmful for businesses. But the good news is that some careful considerations and following a few best practices can help overcome these challenges. Here’s a closer look:

1. Don’t get stuck with assessing every data enrichment tool. Instead, start with a pilot test using one provider and iterate based on results.
2. Given the fact that data becomes outdated quickly, enrichment should be an ongoing process, not a one-off project.
3. Only enrich data that you really need or have a genuine use case. Unnecessary files and too much information clutter the database and increase costs without providing much value.

Wrapping Up

Data enrichment gives a complete makeover to your existing business database, making it a powerful asset that powers personalization, qualification, and decision-making. The best part is that the investment in complete, accurate data pays dividends through higher conversion rates, shorter sales cycles, and improved customer experiences. And the first step to achieving these benefits is to start with clear goals, choose reliable data enrichment services, and maintain ongoing hygiene practices.

A.Peyman Khosravani

Peyman Khosravani is a seasoned expert in blockchain, digital transformation, and emerging technologies, with a strong focus on innovation in finance, business, and marketing. With a robust background in blockchain and decentralized finance (DeFi), Peyman has successfully guided global organizations in refining digital strategies and optimizing data-driven decision-making. His work emphasizes leveraging technology for societal impact, focusing on fairness, justice, and transparency. A passionate advocate for the transformative power of digital tools, Peyman’s expertise spans across helping startups and established businesses navigate digital landscapes, drive growth, and stay ahead of industry trends. His insights into analytics and communication empower companies to effectively connect with customers and harness data to fuel their success in an ever-evolving digital world.