A Customer Data Platform (CDP) can link all applications for both transactional and analytical purposes. If you’re wondering why your business should consider using a CDP, you’re in the right place! In this article, we will go over the customer data platform and discuss detailed its benefits.
Before we start, let`s find out what is Customer Data Platform and why is so important for your business.
Customer Data Platform – An Overview
CDPs are used to organize and integrate consumer data into a single database. These tools provide marketing teams with the relevant insights they need to run campaigns. A CDP can gather data from online and offline outlets, such as websites, mobile apps, and email channels, to provide a comprehensive view of your customer. After recovering this information, a CDP will assist companies in predicting the best next step with a specific customer. It allows companies to learn what steps have to take to attract specific customers. Customer service teams may also use a CDP to tailor their support to each client. Email software, data warehouse software, and other data storage systems may integrate.
Now, as we already know what is CDP, let`s find out all the benefits that it brings to your business.
All Data in One Place
Is it the data from the first, second, or third party? The answer is – all of them and all in one place. Companies also fail to combine and use all of the data they collect. Since data streams are coming from many sources, it is impossible to get a complete image if the information is not structured.
Now, many brands can collect data from all possible touchpoints, both online and offline, in one location. This integration allows them to understand their customers better and achieve their mission of being customer-centric.
Customer 360-Degree View
A 360-degree view of the customer allows businesses to recognise every stage of the customer journey, as well as goods and transactions. It assists the company in better understanding its customers and their behaviour. As a result, having a complete image of the customer allows sales, marketing, and support departments to strategically sell the enterprise’s goods to the right customers at the right time.
This 360-degree perspective is one of the reasons businesses has grown so quickly. With a greater understanding of their (potential) clients, the company can sell their goods more effectively and dramatically increase figures such as the conversion rate. All of these advantages contribute to the main focus of any business: increase sales. A higher level of satisfaction contributes to increased loyalty and a better work environment.
Long-term learnings and campaign optimization
The use of a customer data portal enables insight into the success of individual initiatives. Marketers will see the effectiveness and outcome of the campaign they want to analyze by introducing a consumer data framework. Marketers may enhance their efforts to promote a product or service in the future by having a thorough understanding of the product or service.
CDP does not only have insights for resolving immediate issues such as excessive promotional spending for the targeted audience. In the long run, marketers and businesses can benefit from using consumer data management platforms. Every time a campaign can be changed favourably by using the customer data management tool, the company can learn and improve its efforts for the next time. The budget has been saved, and conversion rates will rise in the future.
Identifying new audiences
Having all of your information in one location makes it easier to segment your clients and audiences, as well as apply simple and advanced analytics. Even though the customer data management tool does not perform segmentation, it can be of great assistance. Marketers must continue to set the requirements for the segmentation of multiple target groups using software that sits on top of the web.
When working with all of the data, they can discover new audience segments such as online spenders, loyal customers, or discount shoppers. Marketers may then further segment each of these segments based on factors such as gender, age, place, and target similar demographics. Since the parts are smaller, the targeting and messages may be more precise.
Increased Profitability
CDPs, when used correctly, can result in a company’s ultimate goal: an increase in sales. The enterprise will build a full view of the consumer by integrating data from all sources. As a result, the possibility of well-targeted marketing to the right people with the right message could increase brand awareness and customer engagement. Because of this, conversion rates are higher.
Cost-cutting measures
Since the data is primarily persistent in the customer data management platform rather than the app, you can reduce costs. A central view also saves analysts a lot of time when it comes to data collection and cleansing.
Observation
Having all of your data in one location makes it easier to comply with GDPR and E-Privacy. It allows the organization to anonymize your contacts. Furthermore, since these activities can be completed with a single source, customer data management systems help data portability and data insight requests. Achieving these tasks in broken data stores will be nearly impossible.
Significantly reduce vendor lock-in
Crystalloids construct the customer data framework by loosely coupling the applications. Your data’s persistence is mainly in the knowledge supply. Since the migration is smooth, switching apps is easy. It’s no surprise, given that the data is permanent in the CDP.
Provide a Better Experience for Your Customers
You are not only increasing profits and earnings for your business by gaining insight into your prospective audience. You are also improving the customers’ purchasing experience. Let’s face it: customers receive plenty of emails (as well as print advertisements in the mail) every day. The majority of these advertisements would be discarded. People do not want to be bombarded with advertisements that are neither interesting nor important to them.
More Information About Your Clients
Data, on the other hand, will provide you with a wealth of knowledge about who your audience is and what types of advertising and marketing messages they are interested in. Customer satisfaction surveys and focus groups may be used to gather this information. When your customers see that you care for their experience with your brand, they will be more loyal and likely to do business with you again.
Increases Opportunities for Cross-Selling and Up-Selling
Data-driven marketing can provide insights to help you pass prospective customers through the sales funnel more quickly and cost-effectively. Furthermore, data will help you identify previously unnoticed opportunities for cross-selling in the sales funnel. After purchase, data will provide you with feedback and ideas for keeping users satisfied post-purchase. This post-sale partnership will result in loyal customers who make additional purchases in the future. The friendly buyer’s journey experience provided by data-driven marketing can also influence converting the clients to be more likely to upgrade or be upsold.
So, are you ready for a Customer Data Platform? Get in touch with us, our services include cloud and on-premise solutions. Get the above benefits and much more.
