Technically, data enhancement is the process of taking external consumer marketing information and overlaying or appending it into your current prospect or customer files. Unlike buying a list, it will add valuable lifestyle, socio-economic as well as demographic data to the existing consumer or potential customer files.
In reality, however, data enhancement means different things to various businesses or companies. It is not a topic that is understood well, but the use of other sources to enhance the brand of a company among its customers has rapidly increased over the last few years. The desires to have a refined environment and a customer centric one for that matter, has made marketers explore areas that most companies would have never considered.
There is no denying that businesses today have become more data savvy and are now more aware of how data can help them understand their customers and prospects beyond just their names, age, gender and location. They are largely using data quality tools for maintaining clean data that can be used for customer focused marketing activities. Targeting and selection has become more accurate and relevant, and as a result companies are investing largely to understand the nature of their customers. Data enhancement and proper data management are key means to that end.
That said, what is the importance of data enhancement?
Well, there is a lot that an organization has to gain by investing in data enhancement:
1. Increased Insight
Enhancing data helps business integrate multichannel data and transform it into significant insight. This allows businesses to understand their customers even more. This ultimately helps retain existing customers and acquire new ones.
2. Segmentation And Targeting
Data enhancement helps a business in being successful in targeting by tailoring their products and communications accordingly. Ideally segmentation can lead to a significant improvement in marketing effectiveness. With segmentation, an organization is able to identify certain groups that display similar purchasing behaviors and patterns. This information can be effectively used in creating marketing strategies that address the needs of every group. The organization will eventually be able to develop natural models in their own environment to help identify product interest among the audience.
3. Channel Optimization
The increased interest in the implementation of multichannel strategies means that identifying groups of individuals with certain interests using certain channels is very valuable to an organization. One good example of this is the use of social media platforms to monitor the activity of people and use the results to make more informed marketing decisions.
4. Save Money and Reduce Wastage
Accurate communications means less waste. Understanding the business and the marketplace helps in ensuring that unnecessary marketing and advertising costs are avoided. The right prospects are targeted with the right products or services. As such, an organization is able to ensure that money is spent in only the right areas.
Finally, with data enhancement and proper data quality tools, businesses are able to identify key customer behaviors and preferences. This ensures that customer interest is maintained by providing the right services which have an added 'personal' touch.
By recognizing the importance of data enhancement, businesses are able to create a more sustainable success, despite the competition in the industry.