Why Do You Need Data Enrichment?

Data enrichment (also called data appending or data augmentation) is probably used by almost every brand. In 2018 alone, this market grew by 80% and has been rapidly growing ever since. The autocomplete feature we have, like form filling on LinkedIn, Instagram, etc., is the most common example of data enrichment implementation. Data enrichment has become a core for several online businesses in 2022, and implementing it in any business is easier than ever.

But before getting started with data enrichment implementation in your business, it’s important to know the benefits, importance and whether to outsource it from data enrichment services or get it done in-house are some of the frequently asked questions. This article is a complete guide answer to why you need data enrichment and how to get it most easily.

What is Data Enrichment

Data enrichment is the process of taking the least provided information (username, IP, mobile number, etc) and then looking for all the relevant data associated with that piece of information by searching other databases and additional resources. Ata enrichment adds meaning to the minimal provided data and is used to obtain the maximum possible relevant information. For example, the HR department uses employee ID to put it in their database system to obtain job roles, performance metrics, experience and all other information about the employee. This is an organizational-level example, but data enrichment isn’t limited to this, as other firms use an IP address to check the safety and reputation, location, and other pieces of information of the source trying to connect with their websites.

Regardless of the source, your customer’s data is in raw form like website traffic, an email database, etc. All such data is stored in a company’s central database but isn’t of any use until it’s raw. The raw data requires to be structured and cleaned before enriching it with external data. Data enrichment adds useful information to raw data and makes it more useful by the addition of value.

Data Enrichment Importance and Benefits

Improves Customer Experience

When it comes to brands, their customers have high hopes of an excellent user experience because this experience is what makes their customers loyal to the brands. Customers will expect the company to know them well, understand their individual needs from the product/service and be relevant to them. That’s where the data scrubbing role begins in enhancing customer experience. Enriched data provides unique information about every individual customer. When data standardization is implemented into your business, it can anticipate individual customer requirements and provide highly personalized marketing value.

Improvement in Sales using Data Enrichment

It’s common to invest a large amount of money in preparing a contacts list to get customers and more sales, but it often results in disappointment due to outdated data. That’s not only a waste of money but also a waste of crucial human resources and organizational time. This is another issue that can be easily eliminated by data enrichment as it ensures an accurate and clean contacts list, which can deliver the expected return on investment.

Data Enrichment Helps in Cost Saving

As per a report published by Global Databerg, an organization having one PB (petabyte) of database spends about 650,000 US Dollars per year in managing their data. However, this maintained data often goes unused and companies don’t utilize it completely. Data enrichment doesn’t store useless information, resulting in cost-cutting. This method uses external sources of data to benefit the organization. The money wasted on maintaining huge databases can be otherwise used on implementing and enhancing data enrichment services for better results.

Results in More Meaningful Customer Relations

Data scrubbing is a reverse of generic data, while generic data cannot help in providing a personalized experience to your customers, scrubbed or enriched data helps in providing the highest level of personalization in communications. This results in a more meaningful relationship with existing and new customers. Having more relevant data also helps in developing communication strategies as a customer is highly likely to make any purchase if they develop a feeling that your company is understanding their individual needs.

Improved Targeted Marketing

When data is highly structured, accurate and personalized, then target marketing yields far better results. The future of Amazon marketing services lies in targeted marketing and unstandardized data won’t be beneficial in the short or long run for any business.

How to choose the right data enrichment services


When handing over your company’s crucial data, it’s important to ensure that it’s going into expert hands. Additionally, the needs of every company may vary and that’s where an expert data scrubbing service will yield highly valuable results. Having a strong track record with their previous and existing clients is the key factor to consider.

Enriched Data Accuracy

While every outsourcing agency will brag about its accuracy, it’s also equally important to update and validate an already enriched data time-to-time. Accurate data also becomes unreliable if not updated regularly. For example, you’re looking for a certified supplier, and you obtain data where you start contacting them one by one to get quotations. However, it turns out that a few mobile numbers are invalid, a few suppliers are no longer in business and others are no more certified. Hence, continuous validation of enriched data is highly important.


You should be able to determine your top, diverse suppliers by record count or expenditure distribution based on nation, continent, and categories after your varied supplier data have been enhanced. You may use spending to negotiate more advantageous contract conditions and save money by classifying and comprehending parent-child family links. Additionally, data enrichment gives you better visibility into supplier relationships so you can see and address risk before it disrupts your supply chain.


You should always ask if your data enrichment service provider’s software has the feature to track crucial changes in supplier status. The outsourcing service provider should also have an automated-alerts sending feature. The service provider should act as any other active member of the team and be capable of alerting you in advance if any changes are required in your existing work.

Once all the above criteria are met, it’s safe to go with the data Standardization service provider who is offering the most economically favorable package.


The benefits of data enrichment aren’t limited to the ones mentioned above, each and every type of business will have additional individual benefits. However, the most important factor is to choose between setting up an in-house department or outsourcing it from a good service provider. For small firms or businesses that are in the growing stage, it’s undoubtedly best to go for an outsourcing firm as it won’t add up any extra burden on the existing functionality of your company.

If your company is big enough to operate an in-house department, but you’re unable to reach a final decision on whether to outsource it or not, it’s safe to begin with outsourcing it and later setting up an in-house team to get 30% of work done by your own and outsource the remaining work. That’s because the scalability of employees is a major challenge for in-house but becomes an advantage when the work is being outsourced.

By Michael Caine

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