1. Data Enrichment for CRM
Pavel Brusilovsky

2. Background and Objectives
The solution to any CRM problem is based on the usage of a customer database.
Data enrichment is a process of supplementing an internal customer database by information from diverse external sources in order to enhance CRM solutions.
Data and attributes that are typically used for enrichment:
Personal, Geographical, Postal , Demographic, Psychographic, Socio-economic data, World event information
The objective of the presentation is to discuss:
the essence of data enrichment
different external sources of information for data enrichment
types of supplemental data that can be treated as a valuable addition to internal data for CRM
enhancement of diverse CRM solutions due to data enrichment

3. Brief characteristics of supplemental data
There are hundreds of different sources of data that can be used for data enrichment to enhance the solution of your CRM problems
Supplemental data for data enrichment can be
economy-wide and industry/sector specific
customer/brand/product specific
geography /territory specific
Nation, states, counties, Zip code, Census tracts/block groups, etc.
time specific, etc.
Some of supplemental data are free, but others are very expensive
It is good to know both demographics and psychographics of your customers in order to advertise and sell your product effectively.
In order to find a solution for other CRM problems, some additional information might be useful:
Personal information
Household level data
Neighborhood/Community level data
ZIP level data, etc.

4. Demographics
Demographics are the average or typical characteristics of the people who buy your products or services.
Demographics include age, income, education, marital status, type of occupation, region of country, household size, etc.
Demographics can also include the age of children, the status of home ownership, median home value, and whether one's home is located in an urban or a rural location.
For some CRM problems it useful to know the population’s makeup in terms of age, gender, income level, occupation, education, and family circumstances: married with children, singles, or retired. 4

5. Psychographics
Psychographics is equivalent to IAO variables (Interests, Activities, and Opinions)
Psychographics
Describe personality, values, attitudes, interests, and lifestyles
Can be treated as a proxy for the concept of "culture"
Example of psychographic questions:
What customers like about your product?
What customers like about your competitor's product?
What made them decide to buy your product?
Did they know which brand they were buying before they purchased it?
What advertising messages had they seen prior to buying?
How much disposable or discretionary income is available for this type of purchase? 5

6. Data Enrichment Sources
There are hundreds of companies that provide a variety of data relevant to your company
We will discuss the data/information provided by several of them:
Mediamark Research & Intelligence ( )
Experian Simmons (
ESRI (
USA Census Bureau ( )
This information/data, combined with your internal database, can
Provide valuable insight into your brand health
Help you make better advertisement decisions
Help with the development of more effective marketing strategy, etc. 6

7. Survey of the American Consumers: Mediamark Research & Intelligence (MRI)
Mediamark Research ( ) has a single goal: to provide the sharpest picture possible of American consumers - who they are, what they buy, what they think - and how to reach them
MRI’s annual Survey of the American Consumer™ collects information on media choices, product usage, demographics, lifestyle and attitudes of adult consumers:
Measurement of the usage of nearly 6,000 product and service brands across 550 categories
Readership of hundreds of magazines and newspapers, Internet usage, TV viewership at the program level
National and local radio listening
Yellow Pages usage and Out-of-Home exposure
TheSurvey's multi-dimensional database provides marketers with a high resolution view of all major media audiences
It is the most comprehensive and reliable source of multi-media audience data available
It is the primary source of audience data for the U.S. consumer magazine industry
MRI survey is based on face-to-face interviews of 26,000 consumers in their homes. It's not the easiest way to conduct research, but according to MRI, the pay-off in reliability, credibility and completeness of results is worth the added cost and effort. 7

8. Usage of MRI’s Survey of the American Consumers Data
The goal of the Survey of the American Consumer™ is to provide high resolution a single-source view of the entire consumer marketplace. MRI’s Survey database can be effectively used for diverse analytical, planning and reporting functions, such as:
Pinpointing target markets
Identifying new buying trends
Developing and rollout new products
Repositioning existing brands and products
More confidently building innovative marketing plans
Gaining insight into consumer motivations
Learning more about users of competitive products
Gauging competitive brand loyalty
Analyzing market demand across segments
Determining market potential of niche targets
Analyzing brand volume data to locate profitable consumer segments
Increasing media buy efficiencies, etc. 8

9. Experian Simmons National Consumer Studies
The Experian Simmons National Consumer Studies ( provides year-round single-source measurement of major media (English-language and Spanish-language), products/brands, services, and in-depth demographic, lifestyle and psychographic characteristics.
Consumer Behavior Studies collects diverse up-to-date information on American consumers, and in particular, what magazines they read, what television programs they watch, what products they buy, and even how they feel about certain issues  
The study uses a two-phase data collection approach, with Phase 1 consisting of a telephone placement interview to determine the household survey participation eligibility and Phase 2 involving the mailing of self-administered survey booklets to eligible household members
Consumer Behavior Studies report
over 60,000 variables in over 8,000 product categories and 450+ brands from over 25,000 annually surveyed American consumers
major media usage behavior
consumer buying behavior, consumer demographics and psychographics  
Consumer Behavior Studies is projectable to national U.S. adult population with rigorous quality control 9

10. Usage of Survey of Experian Simmons National Consumer Studies Data
The goal of National Consumer Studies is to provide high quality research and single-source measurement of the brand preferences, lifestyle, attitudes and media usage behaviors of the American consumer.
National Consumer Studies data can be effectively used to
profile the usage and preference of thousands of brands and services for your geography of interest (available levels of geography: Total U.S., State, MSA, County, ZIP Code, and Census Tract).
provide client insights into Americans' use of new media, such as mobile phones, social networking, instant messaging, blogging, gaming, social tagging/ bookmarking, online video/audio and dozens of other new and emerging media channels alongside traditional media like TV, magazines, radio, etc.  
quickly and easily create successful marketing campaigns
guide strategic planning, measure performance and drive new business development on the national and local level
identify the most effective advertising medium
compare the consumer behavior of Hispanics/Latinos to the overall population 
determine the target audience that will be most likely to make a purchase, and much more 10

11. Community Tapestry Segmentation from ESRI
ESRI Community Data provides an accurate and detailed description of America’s neighborhoods:
This information is crucial for solution of many CRM problems.
Encompasses a variety of datasets that help companies and organizations analyze markets, profile customers, evaluate competitors, and more.
Classification of neighborhoods is based on their socioeconomic and demographic composition:
65 segments
12 Life Mode summary groups
11 Urbanization summary groups 11

12. Community Data Community Data includes Use Community Data to
Community Tapestry market segmentation data
Current-year estimates and five-year projections of demographic data
Consumer expenditure, market potential, shopping center, business, traffic, and census data
Use Community Data to
Analyze and describe your community or trade area
Identify new sites
Evaluate competitor sites
Profile customers and constituents
Forecast demand for products and services, etc. 12

13. Description of summary groups13
Source:

14. Description of Income Range of Life Mode Groups14
Source:

15. Example: First 5 Neighborhood Segments15
Source:

16. Example: Last 5 Neighborhood Segments16
Source:

17. Market Potential Data
Measures the likely demand for a product or service in a county, ZIP Code, or any other defined trade area
Businesses and other organizations use Market Potential data to make decisions about where to offer products and services.
The database projects the expected number of consumers and provides a Market Potential Index (MPI).
An MPI compares the demand for a specific product or service for a trade area to the U.S. national demand for that product or service. The index is tabulated to represent a value of 100 as the average demand. A value of more than 100 represents higher demand, and a value of less than 100 represents lower demand.
With Market Potential Data You Can solve the following CRM problems:
Optimize your merchandise mix
Invest marketing dollars more effectively
Develop successful advertising and marketing plans
Decide which expansions are most profitable
Understand, predict, and influence consumer behavior by providing insight into areas with the highest growth potential
Make informed decisions about products and services based on the latest trends and consumer demand. 17

18. Market Potential Data Structure
Market Potential Reports provide you
with information about the number of
adults or households expected to
consume a particular product or service.
Reports include a Market Potential Index
(MPI) that measures the relative likelihood
of adults or households in a specific area
to exhibit certain consumer behavior
compared to the U.S. average. 18

19. Health and Beauty Market Potential
Identifies market demand for health and beauty products and services among adults and households
A market potential index (MPI) measures the relative demand by consumers in a specified area for items such as vitamins, personal care products, and doctor visits compared to the U.S. average
Key variables used in this report include
2007 and projected 2012 Population, Population 18+, Households, and Median Household Income
2007 number of adults or households expected to consume health and beauty goods and services. Some examples include the number of individuals who:
Used prescription drugs (by reason)
Spent $100+ at beauty parlors in last 6 months
Visited a doctor in last 12 months (by type)
Used a complexion care product in last 6 months
Used a hair coloring product (at home) in last 6 months
Used hand and body cream/lotion/oil in last 6 months
Used headache/pain reliever (nonprescription) in last 6 months
Used a vitamin/dietary supplement in last 6 months 19

20. Health and Beauty Market Potential (report fragment)
Coordinates of a clinic 20

21. ESRI Community Data: Summary
Neighborhood data from ESRI is valuable information for majority of CRM problems
The information (and in particular, market potential data) can be used within the CRM paradigm for the improvement of:
customer profiling and customer segmentation
sales force restructuring
targeting
product marketing
optimization of promotion and evaluation of its effectiveness
potential calculation
sales analysis
sales forecasting, etc.
Data enrichment by combining internal data with ESRI America’s neighborhood data can be treated as an important step in the creation of your company’s Knowledge Repository 21

22. US Census Bureau
The US Census Bureau ( ) is the most important source of demographic, socio-economic, and housing data.
The US Census Bureau conducts:
Decennial Census - taken every 10 years to collect information about the people and housing of the United States
Economic Census - profiles the U.S. economy every 5 years
American Community Survey - an ongoing survey that provides data about your community every year
Population Estimates Program - produces population numbers between censuses
Annual Economic Surveys - data from the Annual Survey of Manufactures, County Business Patterns and Non-Employer Statistics 22

23. US Census Bureau: Annual American Community Survey
The American Community Survey (ACS) is a new Census Bureau's nationwide yearly survey of three million housing units from across every county in the nation.
The ACS collects information such as age, race, income, commute time to work, home value, veteran status, and other important data.
One-year population, demographic and housing unit estimates are available annually for geographic areas with a population of 65,000 or more for the nation, all states and the District of Columbia, all congressional districts, approximately 800 counties, and 500 metropolitan and micropolitan statistical areas.
Although the ACS produces population, demographic and housing unit estimates, it is the US Census Bureau’s Population Estimates Program that produces and disseminates the official estimates of the population for the nation, states, counties, cities and towns and estimates of housing units for states and counties. 23

24. Content of the ACS
The information collected by the American Community Survey can be grouped into four main types of characteristics – social, economic, housing, and demographic:
Social characteristics include information on education, marital status, fertility, grandparent caregivers, veterans, disability status, place of birth, citizenship status, year of entry, language spoken at home, ancestry and tribal affiliation.
Economic characteristics include variables on income, benefits, employment status, occupation, industry, commuting to work, and place of work. This data can be used to assess the economic well-being of individuals and households.
Housing characteristics include information on tenure, occupancy and structure, house value, taxes and insurance, utilities, and mortgage or monthly rent.
Basic demographic characteristics include information on sex, age, race and Hispanic origin.
The ACS collects survey information continuously, nearly every day of the year, and then aggregates the results over a specific period of time – one year, three years, or five years.
Data is available for areas with estimated populations of 20,000 or greater. 24

25. US Census Bureau: Annual Economic Surveys
In addition to conducting the Economic Censuses every five years, the U.S. Census Bureau conducts more than 100 economic surveys covering annual, quarterly, and monthly time periods for various sectors of the economy.
Economic surveys measure a wide variety of economic activities, from capital expenditures for food manufacturing companies to annual auto dealership sales. In particular:
Annual Survey of Manufactures (ASM) provides sample estimates of statistics for commercial manufacturing establishments with paid employees.
County Business Patterns (CBP) and ZIP Code Business Patterns (ZBP) provide economic data by industry at various geographic levels (U.S., state, county, metro area and ZIP Code).
Non-Employer Statistics (NES) provides national and regional data by industry for businesses without paid employees. 25

26. North American Industry Classification System (NAICS)
Economic statistics are published by US Census Bureau in terms of establishments.
Establishments are classified according to the North American Industry Classification System (NAICS). The NAICS is a unique system for classifying business establishments.
Adopted in 1997 to replace the old Standard Industrial Classification (SIC) system, it is the industry classification system used by the statistical agencies of the United States.
NAICS specific information can be a valuable supplement for a variety of CRM problems 26

27. Business Intelligence Solutions is a firm that intelligently performs data enrichment and uses new data for problem solving
Data enrichment (combining supplemental data with internal databases) will allow to formulate and solve new CRM problems, significantly enhance the solution of traditional CRM problems, and finally considerably improve the company bottom-line.
Business Intelligence Solutions can help you with the enrichment of your customer database, and will employ these data in various CRM problems by applying state-of-the-art data mining / predictive analytics / GIS methods and tools 27