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Modern consumers are more demanding than ever. With access to more information and the ability to wield social media influence, customers expect companies to give them VIP treatment by leveraging data enrichment to tailor their experiences. If not, they take their business elsewhere.
Knowing that traditional mass marketing approaches aren’t as effective as they once were, companies feel pressure to create targeted, personalized brand experiences that build trust and loyalty. The recommendation engines companies like Amazon, Netflix, and Spotify use are great examples of how a deep understanding of individual customers can keep them coming back for more.
Gaining competitive advantage through customer-centricity
Companies that go from purely transactional interactions to more meaningful and emotional interactions are known as customer-centric companies. These companies are relentless when anticipating their customers’ needs, delivering personalized experiences, providing exceptional service, and building long-term relationships.
As the marketplace becomes more digital, dynamic, and competitive, companies are realizing that customer-centricity is vital for sustainable success. Numerous studies have shown that customer-centric companies outperform organizations that fail to focus on customers.
- The American Customer Satisfaction Index (ACSI) shows that companies with high customer satisfaction scores dramatically beat the S&P 500
- Business News Daily reports that increasing customer retention rates by 5% leads to a profit increase between 25% and 95%
- According to HubSpot Research, 93% of customers are likely to keep buying from companies that offer excellent customer service
Data enrichment: your secret weapon for understanding your customers
So how do you do it? How can you understand your customers’ behaviors and desires and generate the customer insights you need to drive growth? The technology most companies use to achieve customer-centric status is called customer data enrichment.
Customer data enrichment gives you a fuller picture of each customer by combining the basic customer information you already have with supplemental information from various sources. Data from these sources can include customer interactions, purchase histories, survey results, social media activity, demographics, psychographics, and website analytics.
Data can come from internal sources, external sources, or third-party providers that specialize in collecting, aggregating, and selling data. By stitching these sources all together, you create a single source of truth that enables you to tailor your products, services, and marketing efforts to individual needs.
Enriched customer data enables you to:
- Segment customers on a more granular level, which eliminates wasted effort and resources on customers who are unlikely to convert or engage with your brand
- Create hyper-personalized interactions that show your customers you really know them
- Develop more accurate predictive models and forecasts by identifying patterns in customer behaviors that were previously hidden or unknown
- Deliver more relevant offers and recommendations to improve satisfaction, increase loyalty, and generate revenue
One of the most valuable benefits of customer data enrichment is the enhanced ability to create and take advantage of cross-selling and up-selling opportunities. By analyzing enriched customer data, you can identify trends, anticipate needs, and offer products or services your customers are likely to be interested in.
Another important result of an effective customer data enrichment strategy is reduced customer churn. When customers feel like your brand has their best interests at heart, they’re more likely to keep doing business with you and may even refer your brand to others. You can create this sense of trust by prioritizing personal communications, relevant recommendations, and faster issue resolution when problems arise for your customers.
An essential tool for businesses across industries
As organizations recognize the value of enriched customer data in improving customer experiences and driving business growth, demand for customer data enrichment capabilities continues to grow at a significant rate. According to Acumen Research and Consulting, the market for data enrichment solutions is expected to reach $3.5 billion by 2030, at 8.5% CAGR.
It seems like every business wants to duplicate the fantastic results achieved by Amazon, Netflix, Spotify, and other customer-centric companies that understand the power of customer data enrichment. Here are a few other examples of leading companies in diverse industries that use customer data enrichment for competitive advantage:
- Zappos: By analyzing customer browsing behavior, purchase history, and demographic information, the shoe and clothing retailer uses targeted email campaigns to deliver relevant offers
- Starbucks: By analyzing customer purchase patterns and preferences, Starbucks offers personalized rewards and promotions to individual customers, earning their loyalty
- Sephora: By analyzing customer skin type, beauty preferences, and purchase history, Sephora provides tailored product suggestions to customers online
Overcoming challenges and considerations
While customer data enrichment can be a game-changer for most organizations, it’s not without its challenges. If your data is disorganized, siloed, inaccurate, or incomplete, you’ll have a much harder time generating the insights you need to acquire and retain the best customers.
Before you begin any customer data enrichment activity, you should have the following elements in place:
- An effective data integration and management system for eliminating silos, standardizing data, and facilitating data sharing
- Data pipelines that ensure you have the latest information at your fingertips
- Strict data governance and compliance processes to ensure privacy
Implementing an effective data enrichment strategy
Whether you already have your data house in order or need help preparing for customer data enrichment, Revelate offers a variety of tools and services that can help you organize and protect your data, collect and aggregate data from various sources, analyze it for valuable insights, and distribute it securely across your organization to drive business outcomes.
Our fully automated, cloud-based platform simplifies the process of data sharing, buying, and selling. Any firm can use it to productize their data for fast and easy access, organization, and distribution to authorized users. By identifying, packaging, and distributing the data you need to solve your business problems, we work with you to connect specific use cases to the necessary data without a lot of effort.
Here are just a few of the ways our platform can make customer data enrichment a reality at your company:
- Our extract, transform, and load (ETL) tools ensure access to the latest, most accurate data from different sources
- Our data cleansing techniques eliminate duplicate and outdated information for a more reliable and trusted view of your customers
- Using insights from patterns and behaviors, our analytics capabilities allow you to identify your highest-value customer segments
As a data fulfillment platform, Revelate can empower you to improve your understanding of customers, refine your marketing strategies, and ultimately drive better customer experiences and business outcomes. To learn more and get started, contact us today.
Unlock Your Data's Potential with Revelate
Revelate provides a suite of capabilities for data sharing and data commercialization for our customers to fully realize the value of their data. Harness the power of your data today!