Why Are Companies Investing in Data Enrichment?

Data Enrichment: What Is It?

The practice of adding first-party and/or third-party information to your data in order to increase its use is known as data enrichment. First-party data is information that originates directly from your consumers (more on this later). In contrast, third-party data enrichment refers to the use of data from a reliable third-party source, such as Finder.

What Makes Data Enrichment Crucial?

Companies are investing in data enrichment due to the following reasons:

1. Accurate Data

The cost of using outdated and erroneous data is enormous.

Did you realize that every time a salesman contacts the wrong contact, it costs $11? Or that up to 30% of the income generated by B2B companies is spent on erroneous data? Without accurate data, you run the risk of losing money.

2. Genuine Connections

Receiving an email that begins, "Dear Customer," is it annoying? Nobody likes to read bland, spammy-sounding correspondence. Users desire personalization and the impression that they are being understood. With data enrichment, you may have more relevant customer interactions, marketing messages, and marketing campaigns, all of which benefit your bottom line (sales, upsells, etc.)

3. Focus on Personnel

When working with continually updated data, the beauty of data enrichment is that your workforce is concentrated on providing the most value to the company.

It is true. The time of your employees is finite. Say you have a staff dedicated to customer success. Where ought they to concentrate their efforts? Should you prioritize lowering churn? Upsales? Taking care of clients with a specific lifetime value? The capacity to derive data insights, update customer data at scale, and focus workers on tasks that generate the most financial value for the company are all provided by data enrichment.

4. First-Party Data Enrichment

The goal of first-party data enrichment is to develop a complete, all-encompassing picture of your consumer because nobody wants to receive an email that isn't specifically tailored to them.

You achieve this by using B2B prospecting solutions (like FInder.io!) that allows CRM integration and marketing automation software support to supplement first-party data (data supplied by the client) with information from secondary sources, such as your B2B marketing database.

Knowing the data you have and the data your team wants to know, and filling the gap with enhanced customer data, is the ideal method to carry out first-party data enrichment. Let's imagine your team is interested in learning which CRM businesses have gotten a 50M+ round of investment in the most recent year. You may get that information and create a more complete picture of your consumers by collaborating with a database-enrichment provider.

Applications of Enriched Data

Now that we are aware of how crucial is data enrichment, it is time to look for the applications of enriched data. Read on to know the same:

1. ABM: Account-based Marketing

Using an ABM approach? An extraordinarily targeted and deliberate approach to sales is account-based marketing. When sales and marketing are well aligned on the precise clients they want to entice, right down to the client's name and firm, this is when it happens. This is due to their unwavering focus on their ideal client persona and the companies that are the greatest fits for the product or service, have the highest likelihood of generating a return on investment and have room to develop and expand in the long run.

First-party data is information that originates directly from your consumers. Sign Up 14-Day Trial

Data enrichment is essential in this field of marketing and sales. Let's imagine your team wants to target businesses with revenues of $100 million and higher. However, this information isn't included in your data. This indicates lost chances and the possibility of missed revenue and business growth.

2. B2B and B2C Sales Process Improvement

Data enrichment should be the foundation of your sales prospecting approach for both B2B and B2C sales processes.

Outbound sales for B2B and B2C: Both B2B and B2C are observing a trend wherein inbound roles are being replaced with hybrid outbound/inbound roles. SDRs, BDRs, and occasionally even AEs are being required to spend more time on outbound calls and actively seek out new clients. This implies that in order to make sure that their attention is being directed to the proper prospects, sales teams need both improved customer data and sales intelligence solutions (i.e. the most likely to purchase your goods and establish long-term business ties.)

Salespeople may locate new prospects at scale with B2B prospecting solutions (like Finder) by using straightforward search parameters like industry, location, revenue, employee count, seniority level, department, job title, and more. While data enrichment strategies assist you in maintaining your data's freshness and enrichment with extra user-related data.

3. CRM Improvement

CRMs typically end up becoming a repository for outdated data. People, data degradation is a real thing, and every year, up to 70% of your CRM data becomes out-of-date.

This indicates that 70% of the leads you bought with your hard-earned marketing money have aged horribly. Truths are truths. Every hour, at least 60 organizations alter their addresses while people change jobs and positions.

Your data loses value every single minute without contact data enrichment, which costs your company at least 30% of its revenue.

Conclusion

To guarantee that your sales data is supplemented with the information you need to improve personalization, concentrate personnel on mission-critical duties, move users along the sales funnel, and keep the data you worked so hard to collect up-to-date, contact data enrichment is essential.

Your CRM, B2B, and B2C databases stay current with relevant and updated data thanks to contact data enrichment systems like Finder.io, which give updated contact and corporate data at scale.