Data Enrichment

How to Make Your AI Smarter with Enriched Data

It’s a common belief today that to increase the effectiveness of artificial intelligence and maximize your return on investment, you need to employ more sophisticated algorithms. This belief has resulted in a competitive landscape where technology companies are battling over who can develop the most advanced techniques. It also means that many organizations are not investing what truly impacts the efficiency and prediction quality of AI — data.

Studies have shown that incorporating more data into marketing efforts has a significant effect on company revenues. For example, 1.4 times as many companies that used more than 75% of the available data in marketing reported exceeding revenue goals, compared to those that used less.¹

According to Mobilewalla’s newest white paper, “How Enriched Data Can Make AI and Your Organization Smarter,” it’s the depth (volume) and breadth (the attributes) of data that has the most effect on a positive outcome.

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When you compare two different AI techniques, one simple and one sophisticated, and feed different volumes and breadth of data into each algorithm, in time the prediction quality of the simpler algorithm that you feed more data surpasses the sophisticated algorithm with less data.

Let’s take a look at a recent example that proves this point.

Case Study: How Enriched Data Impacts AI Results

Most businesses get 80% of their revenue from 20% of their customers. These high-value customers (HVC) are critical to the success of an organization, and as such, are a segment that businesses need to continue to acquire, retain, and grow.

A global food delivery company asked Mobilewalla to help them better identify and target their high-value customers beyond what they were able to decipher from their own data. Mobilewalla used an RFM (recency, frequency, monetary) model to create a high-value customer profile that could help drive improvements in average revenue per customer, average order amount and ROI related to acquisition costs.

Prediction quality over time

To demonstrate the value of having more depth to your data, Mobilewalla analyzed three quarters of customer order history using a simple algorithm (in red) for the delivery company versus only one quarter of order history with a sophisticated algorithm (in purple).

The results show that the simple algorithm with more in-depth data beats the more sophisticated algorithm with shallower data by 40%, meaning that algorithm sophistication cannot compensate for lack of data depth.

Enriched Data vs First party dataNext, consider the breadth of data by comparing the constrained, narrow data that the company collected including order amount and frequency, versus full-featured, comprehensive data that they gained access to by partnering with Mobilewalla.

The enriched data included additional information like home and work location, age, gender, restaurant visit frequency, supermarket visit frequency, and more, and boosted the prediction quality of the algorithms by an additional 10%. In this case, the simple algorithm that used a greater breadth of data beats the sophisticated algorithm using only first-party data by 50%.

To summarize, organizations looking to increase the return on investment in artificial intelligence or machine learning benefit greatly from enriching their data with data from a third party. This additional information helps to increase the breadth and depth of data, significantly increasing the effectiveness of the AI techniques that you apply.

Learn More: How Retailers Can Leverage Big Data and AI for Consumer Intelligence

Power Your Marketing With Mobilewalla

Mobilewalla combines the industry’s most robust data set with deep artificial intelligence expertise to help brands better understand customer behavior. We collect, identify, and analyze directly sourced application usage data from SDK integrations and supply-side platform partnerships.

Through our extensive AI expertise, we deliver refined consumer insights that provide enterprises with unparalleled access to the digital and offline behavior patterns of their customers and prospects, as well as nuanced data about their competition.

To learn more about how you can get the most from your AI investment, or connect with a Mobilewalla expert today.

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Mobilewalla is a global leader in consumer intelligence solutions, leveraging the industry’s most robust consumer data set and deep artificial intelligence expertise. Our refined consumer insights provide enterprises with unparalleled access to the digital and offline behavior patterns of customers, prospects, and competition.

Start making more informed business decisions and effectively acquire, understand, and retain your most valuable customers. Get in touch with a data expert today