In simplest terms, data enrichment is when you take your existing data on customers, then utilize a third-party resource to add more data to it. For example, if you currently only have names and phone numbers, you may be able to use a third-party resource to find out an address history. This can be beneficial for many different companies from many different industries.
Data enrichment requires the use of a third-party resource. Customers often give you certain pieces of information on their own but may prefer not to disclose other information. However, if you’re able to utilize a third-party data source, you may get access to that information anyway. It’s important that you trust the quality of that third-party source since you’re likely going to rely on that information fairly heavily.