Data analytics are generally considered to be the next major development that will provide companies a competitive advantage. A recent study found that 83 percent of enterprise executives are pursuing big data projects to obtain a competitive advantage and that data analytics has fundamentally changed business practices in 50 percent of sales and marketing departments.
Consumer data can be gathered from a variety of sources and applied to deepen a company’s understanding of their customers. However, the data gathered by a company and stored in the customer relationship management (CRM) system often has a strong demographic focus.
Companies are missing useful data that can improve insights even more – making it possible to fine-tune efforts at segmenting, targeting, and predicting consumer behaviors. Effectively applying those efforts to marketing, sales, real estate planning, and other business decisions can greatly increase ROI.
How Consumer Data Enrichment Affects Customer Experience
Consumer data enrichment applies additional third-party data to an enterprise CRM or database. In doing so, brands can enhance the data they have already gathered, making more informed decisions and improving business outcomes.
When it comes to enhancing the customer experience, consumer data enrichment is used to learn more about customers and what they’re interested in. That information is then applied to communication, marketing, sales, and other business arenas, all with the purpose of making every customer interaction more valuable to the customer. For instance, by understanding what consumers are interested in, you can write emails that speak directly to those interests, making every email engaging and useful.
There are many types of data that can enrich your database, and it can be difficult to know which will be most valuable for improving the customer experience. Standard information on age and marital status likely won’t cut it in today’s hyper-personalized world. Instead, companies need to leverage innovative new data types to gain deeper information.
Location data can help. Unlike other data enrichment sources, location data is based on the places and events people attend in the real world, providing unprecedented insight into what’s really important to consumers. Those details help businesses understand what customers are interested in, helping them make better business decisions.
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4 Types of Data to Enrich Your CRM
Raw location data can be applied to multiple business areas. To improve the customer experience, however, there are four key types of data to consider adding to your CRM.
1. CONSUMER INTERESTS
Every individual has a unique collection of activities, interests, and pursuits that drive their behaviors. Location data – tracking a person’s physical movements using mobile data – provides a wealth of information about their interests, hobbies, and activities. If location data shows that your consumers attend concerts every month, then it’s obvious music is important to them. Understanding those types of interests allows enterprises to personalize marketing efforts to improve results.
Studies have found that personalization improves customer acquisition, conversion, and overall sales. Research from Hubspot found that a personalized call to action was 202 percent more effective than a generic CTA; while Segment found that personalization drives repeat purchases in 44 percent of customers and impulse buys in 49 percent of shoppers.
Demographic data can tell an organization basic information such as a customer’s age, gender, and shopping history – but knowing that your 64-year-old male purchaser of household items is also a biking enthusiast and wine connoisseur opens up a variety of opportunities for a marketer to reach a consumer, improving CX.
2. BRAND AFFINITIES
Brand affinity refers to the emotional connection that customers feel for a certain brand, driven by the belief that the brand and customers share common values. Affinities help organizations ensure that their brand represents the values of their target audiences.
If a company’s customers are focused on charity and volunteering, advertising corporate social responsibility (CSR) or ‘sincerity’ branding will be more effective than, for example, advertising luxury items or ‘sophistication’ branding.
Location data provides affinity insight by gathering data about events attended, retail locations frequented, as well as daily habits and routines, all of which speak to an individual’s substance and values.
Understanding consumer affinities creates, builds and strengthens the emotional bond between customer and brand, creating the foundation for a long-term, resilient relationship. It can also open up opportunities for sponsorship or comarketing between brands with similar audiences.
3. IN-MARKET BUYING BEHAVIOR
Consumers who are ‘in-market’ are actively looking to purchase a specific item, product or service. Knowing what your consumers are in the market for allows you to reach them at the time when they are most likely to make a purchase, with the right message to convert them.
In-market buying behavior may take into account past actions, including purchase history or store visits; current actions, including product searches; and predictions of future actions.
Location data can help to determine in-market buying behavior by revealing what types of events, stores, or places a person attends. For example, a person that visits the dog park, a pet adoption event, and a pet store may be in the market for a dog bed, leash, or veterinary services.
Consumer data enrichment can provide a comprehensive view of customer behaviors, making in-market analytics possible. From there, businesses can directly target consumers who are in the market for specific products and services, which can significantly increase the ROI of advertisements, email marketing, and customer communication.
4. VISIT PATTERNS
Visit pattern data not only tells a business how frequently an individual visits a specific store or location – it can also tell how many visits are typical before a purchase is made, how far they travel between locations, and what additional stops are made along the way.
Location information is fundamental to visit pattern data, as a person’s physical movements are tracked over time through their mobile device. Tracking data over time reveals patterns that would be imperceptible with ‘snapshot’ data, increasing the value of consumer visit pattern data. This can lead to more informed decision making, including targeting, segmentation, measuring marketing effectiveness, expansion, and cross-promotional opportunities.
Use Consumer Data Enrichment to Improve Key Metrics
Consumer data enrichment is one way that a company can improve its understanding of its audience and use that understanding to improve customer acquisition, retention, and conversion.
Location data is fundamental to consumer data enrichment, providing information on customer interests, values, behaviors, and habits. This information can be used to augment existing consumer insights, giving a richer, more detailed picture of each customer to direct organizational strategies and decision making.
To get the best results for your money, look for data enrichment services from reputable providers with national reach that emphasize high-quality, accurate data. The better the location intelligence company, the best your data will be at driving actionable insights that improve results.
6 Benefits of Location Data
Download the datasheet to uncover more ways marketers can maximize location intelligence to benefit their business.