Why Are Companies Investing in Data Enrichment?

You have a ton of data—all the client information you could ever want.

But how can you make the most of this data? How can you generate new business and upsells using the data that your company already has? How can you make use of it to reduce churn and boost retention? Answers to issues like these and others are provided by data enrichment!

Data Enrichment: What Is It?

Data enrichment is the process of enhancing your data with first- and/or third-party information to make it more useful. First-party data are statistics that come straight from your customers (more on this later). In contrast, using data from a dependable outside source, like Leadsly, is referred to as third-party data enrichment.

What Makes Data Enrichment Crucial?

Where to start?

Accurate Data is Expensive

Using inaccurate and out-of-date data has a high cost.

Did you know that it costs $11 every time a salesperson contacts the wrong person? Or that B2B enterprises can lose up to 30% of their revenue because of inaccurate data? You could lose money if a company’s lead generation is inaccurate.

Form Genuine Connections with Your Customers

Is it annoying to get an email that starts with “Dear Customer”? Nobody enjoys reading letterhead with a spammy tone. Users want to feel understood and want their experiences to be personalized. Your business may profit from more relevant customer interactions, marketing messaging, and advertising campaigns thanks to data enrichment (sales, upsells, etc.)

Focuses Personnel

The beauty of data enrichment is that your workforce is focused on bringing the maximum value to the organization when dealing with continuously updated data.

It is real. Your employees have limited time. Let’s say your team is committed to helping clients succeed. Where should they focus their efforts? Should minimizing churn be your top priority? Upsales? caring for customers with a particular lifetime value? Data enrichment enables the ability to draw data insights, update customer data at scale, and concentrate employees on work that adds the most financial value to the firm.

First-Party Data Enrichment

Nobody wants to receive emails that aren’t especially suited to them, therefore the aim of first-party data enrichment is to create a comprehensive, all-encompassing picture of your customer.

You accomplish this by utilizing B2B prospecting tools (like Leadsly!) that enable CRM integration and marketing automation software support to add data from secondary sources, such as your B2B marketing database, to first-party data (data supplied by the client).

The best way to conduct first-party data enrichment is to be aware of the data you have and the data your team wants to know, then fill in the gaps with enriched customer data. Imagine that your team is curious to find out which CRM companies had a 50M+ round of investment in the previous year. You might get

Applications of Enriched Data

ABM: Account-Based Marketing

using an ABM strategy? Account-based marketing is a very intentional and targeted method of approaching sales. It happens when sales and marketing are perfectly in sync with the specific clients they wish to attract, down to the client’s name and company. This is as a result of their unrelenting focus on their ideal client persona and the businesses that best fit the product or service, are most likely to produce a return on investment, and have room to grow and expand in the long run.

Data enlargement is crucial in this area of sales and marketing. Imagine that your team is looking to target companies with $100 million or more in annual revenue. However, your data don’t contain this information. This proves.

B2B and B2C Sales Process Improvement

Your sales prospecting strategy should be built on data enrichment for both B2B and B2C sales processes.

B2B and B2C outbound sales: Inbound roles are increasingly being replaced by hybrid outbound/inbound roles in both B2B and B2C. It is becoming more and more necessary for SDRs, BDRs, and on occasion even AEs to make more outbound calls and actively look for new clients. This suggests that sales teams want enhanced customer data and sales intelligence tools in order to ensure that their focus is being placed on the right prospects (i.e. the most likely to purchase your goods and establish long-term business ties.)

With B2B prospecting tools (like Leadsly), salespeople may find new prospects at scale by employing simple search criteria and using an auto dialer software like Voxdesk you can auto dial prospect’s phone numbers.

Improve Your CRM

CRMs frequently wind up serving as archives for old data. People, data deterioration is a real problem, and up to 70% of your CRM data becomes outdated annually.

This means that 70% of the leads you acquired with your hard-earned marketing funds have deplorably deteriorated. Truth is truth. At least 60 organizations change their addresses every hour as people move around and change positions.

Without contact data enrichment, your data loses value every single minute, costing your business at least 30% of its income.

Conclusion

Contact data enrichment is crucial to ensuring that your data is expanded with the information you require to enhance personalization, focus people on mission-critical tasks, move users down the sales funnel, and maintain the data you worked so hard to obtain up-to-date.

Thanks to contact data enrichment systems like Leadsly, which provide up-to-date contact and business data at scale, your CRM, B2B, and B2C databases remain current with pertinent and updated data.