What Is Data Enrichment and Why Is It Necessary for Your Company?
Most companies rely on data enrichment, isn’t it time you find out what it is, why it’s important and how you can make use of it in your business?
Data enrichment is something you use every day, even if you don’t realize it. For example, Google’s autocompleting function is compatible with it: It takes unstructured input (your keystrokes) and enhances it by looking for matches in a massive dictionary of (nearly) every imaginable term.
What happened? Upgraded software that is easier to use.
Did you know that many successful websites nowadays rely heavily on data enrichment (also known as data augmentation or appending)? Also, did you realize that entry barriers are lower than ever before? In this piece, we’ll explain data enrichment and why it’s essential for fighting online fraud in general.
The Meaning of Data Enrichment
During data enrichment, unstructured data is combined with comparable data from a more extensive database. The information gathered in the database may be from either an internal or external service; it may also be a mix of open (OSINT) data and internal sources.
In this approach, we may glean more information from a single data about a person, place, or object. We may learn more about a consumer, for instance, by examining their phone number or email address. Email Oversight uses data enrichment to help businesses combat fraud, get alternative data for credit scoring, identify their most valued clients, and so on.
To what end is data enrichment beneficial?
Data enrichment is crucial to learn more about your consumers without bothering them with more questions. Asking for an individual’s email address is one easy way to confirm their credibility. The user experience isn’t hampered, and the danger is mitigated.
More information allows for better business judgments. And it’s particularly true for businesses that are missing critical information, such as:
- Changing markets
- The constant effort to follow the latest fashions
- A New Venture Creation (like moving from brick and mortar to online)
- Attempting to minimize disruption for customers by gathering just the data needed.
- Attempting to enhance aiming
- Fighting Fraud and Making It Less Common
Advantages of Enriching Data?
Competitive advantages may be gained by data enrichment in several ways, including:
- Getting to know your audience better is essential in lowering fraud and risk.
- Lessen the burden on the user by not forcing them to fill out a gazillion forms. Instead of interrupting the user experience, you may perform the tests invisibly in the background.
- You want to keep churn to a minimum by making sure the user’s path is clear and removing any barriers that would cause them to leave midway through and abandon their cart.
- Data enrichment tools that provide findings in real-time are preferred.
- Review manuals more quickly: doubtful about taking up moderate risk? To make a more informed judgment, you should run the data via a data enrichment module.
Data Enrichment Use Cases
To fully embrace the digital age, companies must automate data enrichment. In reality, it is this process that makes it possible for enterprises to exist in the following industries:
Improved information quality is the foundation of credit scoring. Using alternative or third-party databases allows financial institutions to understand their clients better (and hopefully reject potential defaulting customers).
Especially when doing business electronically, data enrichment is essential to the underwriting process. Trust alone is insufficient since you know nothing about your prospective clients. To protect oneself against malicious actors, you should arm yourself with as much information as possible.
Similarly, improved user profiles may help online companies decrease fraud rates. You can get a complete picture of a person from only a few pieces of information, such as email address, device, or IP address.
The email analysis module and email lookup tool we developed in-house is an excellent illustration of this. Your user provides their email address throughout the signup process, and we automatically check to determine whether or not the domain is genuine, the age of the address, and whether or not it is associated with any social network accounts. Long-term fraud rates may be lowered significantly by this easy procedure.