Data Cleansing vs. Data Enrichment in the Business World

Laura BednarUncategorizedLeave a Comment

Data Usage in the Business World

The role of data in today’s business model is becoming more prominent than ever before. Businesses must use email campaigns, social media, online marketing and more to succeed. There are two types of practices that are most commonly used today: data cleansing and data enrichment.

Before discussing the distinction between the two–which are separate but related issues–it is first necessary to explain what customer data platforms (CDPs) are and the role they play in contemporary business intelligence. CDPs are an AI-driven technology that provide businesses with comprehensive consumer profiles they can use to boost profits and make smarter decisions.

CDPs can help businesses to:

  • Manage data cleaning and enrichment
  • Obtain information about consumer tastes, demographics, and behaviors
  • Understand how customers see a brand and respond to marketing
  • Get metrics on what online shoppers are looking at and clicking on

Without accurate and timely intelligence on these topics, businesses will have great difficulty evaluating ROI and the success of marketing campaigns. But these days, businesses have to leverage a vast sea of consumer information coming at them from multiple sources such as their CRM, social media, advertising platforms, vendors and more. CDPs help them distill this raw stream of intelligence into clear, usable metrics, in large part by cleaning and enriching it.

Data Cleansing

Data cleansing has to do with the accuracy of intelligence. It is the process of ensuring that information is accurate and consistent, in abstracting data quality from the enormous quantity at an organization’s disposal. Cleansing eliminates the old and untrustworthy information, such as obviously fake or joke site accounts. (For instance, someone who signs up for an account with a name like Count Chocula, which has remained inactive for 5 years.)

There are many ways CDPs help to cleanse the intelligence streams.

  • They merge duplicate information by aggregating trillions of transactions into a coherent user profile
  • They get rid of aging sales leads as they begin to lag. A CDP can help determine when a user behavior that indicates a lead has passed the threshold of usability
  • CDPs can optimize metatags to meet current best use guidelines.

Data Enrichment

Like cleansing, data enrichment is concerned with improving data quality. But whereas cleansing aims to reduce errors and reduplication in information, enrichment seeks to use it in the most effective possible way.

This can be done by combining different information or information from different sources and by analyzing the intel so as to produce the maximum insight. CDPs can take in action in several ways including:

  • Turning raw intelligence into usable information on a target market, which in turn can be used to guide marketing strategy
  • Generating insight into information that can be used to fine-tune a company’s strategies. For example, it could tweak an email marketing campaign so that customers get emails targeted to their particular needs, rather than a universal template.
  • Consolidating information from myriad sources like CRMs, social media, etc., and producing a 360-degree view of a customer unlike anything business leaders have had before.

Advantages to Data Practices

There are lots of ways to leverage a CDP to your organization’s advantage. You can use it to compile information from multiple sources into a single place and can use intel from beyond the internet, like store-based purchases. Adding input from vendors and third parties, including DMP suppliers, can greatly augment your existing customer profiles and add many more.

SecureData provides cutting-edge computer security solutions for businesses, including recovery, backup, forensics, encrypted storage, and more. If you are interested in improving the quality and security of your business intelligence, you might venture a closer look at our SecureDrive product line and cybersecurity team at SecureForensics. Call us at 1-800-388-1266 to learn more about the opportunities for your business’ technology to run smoothly.