What is Transaction Enrichment?

A transaction can be made more valuable and relevant by adding additional data, a process known as “transaction enrichment.” Many industries can use this approach, including finance, retail, and healthcare. Through improving transactions, businesses can gain a deeper understanding of the preferences and behavior of their customers, which can aid them in making crucial business decisions. To help you get more information, This blog will provide insightful details related to transaction enrichment.  

Types of Data Added in Transaction Enrichment 

Transaction enrichment can be done in varied ways. Here are several data types added to transaction enrichment:

1. By Adding Data Fields 

The data fields provide additional context for the transaction and enable transaction enrichment. It can include details about the merchant, such as business type or merchant category code, linked with other details like date and time of the transaction, mode of transaction, etc.

2. Adding Data Through Enrichment 

To better understand the details of clients, such as demographic information like age, gender, and income level, can be included by adding data through data enrichment. Data about the goods or services purchased, such as SKU details or product descriptions, can also be included in transaction enrichment. Understanding the most popular goods or services can help businesses adapt their offerings through this process. 

Benefits of Transaction Enrichment 

Here are various benefits of Transaction Enrichment: 

1. Understanding Better Customer Behavior

Transaction Enrichment helps businesses understand the tastes and preferences of their customers. Organizations can learn more about the types of customers making purchases by including demographic data in a transaction and can adjust their marketing and sales efforts.

2. Assisting Businesses in Identifying Fresh Patterns and Trends

Organizations can find trends and patterns in customer behavior through transaction enrichment. Organizations, for instance, determine which goods or services are more in demand by analyzing transaction data and then modifying their inventory or pricing accordingly. Organizations may benefit from this by increasing customer satisfaction and profitability. 

Methods Involved in Transaction Enrichment 

Here are several methods involved in transaction enrichment which are as follows:

1. Data from third-party providers

It is common practice to enhance a transaction’s demographic information using data from third-party providers, such as credit institutions. Another approach is to use machine learning techniques to analyze transaction data in search of trends that can provide insight into consumer behavior.

2. Reference Database

An alternative is to utilize reference databases that contain information on businesses and their products. An example of a database of merchant category codes can be utilized to provide a transaction with more context based on the type of business where it occurred. Similarly, a database of product SKUs can be used to provide further details about the specific items or services being purchased in a transaction.

Conclusion 

Transaction enrichment is the process of putting additional data fields to a transaction to give it more context and make it more usable. Organizations may learn more about customer behavior and preferences, spot trends and patterns, and enhance fraud detection and prevention through enhancing transactions.