For most brands, customer data is a resource that is easy to come by. From collecting zero party data directly from your customers to buying third party data from aggregators, there is no shortage of customer data available for brands.
However, data is beneficial only if it can provide an insightful look into your target audience. For instance, user information such as names, email addresses, phone numbers, and occupations, may not be entirely advantageous to understanding your customers’ needs or behaviour. The same applies to incomplete, missing, or outdated consumer data.
As much as data has progressively become digital gold, its accuracy can make or break a brand’s engagement and conversion efforts. An article released by ZoomInfo reveals that 40% of business objectives fail due to inaccurate data. When customers are constantly changing their email addresses, phone numbers, and even jobs, it is important to enrich your audience data beyond basic contact information in order to improve your customer engagement and conversion rates effectively.
That being the case, what can businesses do to get improved, deeper, and accurate consumer data? The answer lies in customer data enrichment.
“Customer data enrichment is the process of cleaning, refining, or enhancing your existing audience data.”
This method has proven to be a practical, data-driven approach with numerous benefits for brands, including increased customer engagement as well as conversion rates.
Let’s check out the benefits of data enrichment and its role in increasing engagement and conversion rates for brands.
Enriched data can enable personalized video communications that build purposeful customer relationships and provide better business opportunities. With precise and relevant data, business communication strategies can be planned and executed based on customer preferences and needs. This allows customers to have highly positive interactions with brands, increasing their loyalty and likelihood of purchasing or recommending a product/service.
Data enrichment helps to prevent data decay, which can substantially cost businesses. It sidesteps the possibility of potentially damaging results that comes with working with low-quality data, such as increased costs, customer dissatisfaction, and poor decision making. The data enrichment process typically involves collecting and managing data through powerful AI algorithm models. Therefore, with the accurate data collected, brands can enjoy efficiency, growth in business sales, and revenue.
Organizations spend a lot of time collecting and maintaining customer data when they could be focusing their efforts on utilizing it effectively. Data enrichment diminishes the time and effort that is needed to manage data as it supports automation. Therefore, it promotes employees’ productivity while saving business costs.
Data enrichment delivers some of the results that businesses seek from targeted campaigns through segmentation. With access to extra information about your business leads or prospects, more personalized content can increase the chance of higher conversion rates and sales opportunities.
Data enrichment makes your customer data work for you. Businesses can locate potential customers and use existing customers’ data to find new markets that match their customers and make marketing more efficient. Still, this ensures continuous customer communication and nurturing, which might open up new business opportunities.
Without a doubt, customer data is essential for every business, but its value lies in its quality. Data availability and supply alone is not a guarantee for success. Data enrichment can help ensure that your brand’s customer data is relevant, amplifying its value by ensuring it is reliable, up-to-date, error-free, and void of duplicate data.
Doing so will help brands to develop a higher level of audience intelligence, ultimately creating a deeper understanding of their customer base. This will allow for more well-informed, customer-oriented decision making on the brand’s part when it comes to predicting customer needs and trends. Ensuring that they are responsive to their customers’ needs will mitigate risks and losses in the long run.
Zero-party data (ZPD), as Forrester puts it, is the data that consumers deliberately and proactively share with businesses, such as their purchase intents, personal context, and how they want a brand to identify them. ZPD is unique from other types of customer data as it provides more precise insights into customer interests and preferences through their direct engagement with a brand. It also seeks to ask customers what they are looking for, providing brands with the ability to tailor their services to each specific consumer, rather than their broad customer base.
ZPD also presents the ideal opportunity for businesses to create and maintain long-term relationships with their customers. BRP’s 2018 Customer Experience Survey finds that 64% of consumers are okay with retailers saving their purchase history and personal preferences if more personalization is offered.
When customers feel they have control over their interactions with brands, they are inspired to invest and engage with your business. Therefore, they develop confidence in your brand to recognize their needs and offer a service that is in line with them.
The collection, update, and real-time application of zero-party data through data enrichment can enhance existing data points for businesses. Adopting a zero-party data approach helps businesses create direct relationships with customers and enhance their personalized customer service capabilities.
The enrichment of data helps businesses increase customer engagement rates, which is a significant goal for any brand. Higher rates of customer engagement will, in turn, increase the number of sales conversions. With added customer awareness through data enrichment, a business can easily profile and engage both customers and prospects.
The ability to leverage zero-party data and allow customers to choose how they prefer to interact with companies opens up the window of opportunity to increase the conversion rates. As such, businesses can earn customer trust, which will pay off with purchases, increased web traffic, content subscriptions, recommendations, and new customers.
With zero-party data thriving on customer engagement, businesses need to implement the right technology solutions to support their collection. A useful technique that companies are using to effect data enrichment and drive customer engagement is by creating interactive, personalized video solutions. Video marketing platforms is a consumer-favourite that has revolutionized how customers and business interact. It is one of the fastest-growing marketing strategies with notable success. A HubSpot research study found that 72% of consumers prefer video to text for receiving marketing information. Personalized videos provide the value, relevance, and flexibility consumers need.
Apart from engaging consumers, video marketing provides a real-time zero-party data gathering platform. As customers engage with the platform, business tactics like surveys, digital experiences, polls, briefs, targeted surveys are used to gather user-specific information.
Businesses can then harness user data to enrich their databases to personalize their experience instantly. As a consequence, companies will record both increased customer engagement and conversation sales. To back this up, Brightcove’s 2018 Video Marketing Survey points to 76% of consumers and 85% of millennials, defined as people aged 18-34, having purchased a product or service after watching a video. Additionally, HubSpot notes that embedding videos in landing pages can increase conversion rates by 80% to 90% since product videos help consumers make purchasing decisions.
At this point, we can agree that data enrichment is a strategy that sets many businesses apart. Businesses that employ this approach highly outperform those that rely on outdated or inaccurate data. For maximum results, data enrichment should be used alongside software tools that support its feasibility.