We have witnessed a rise in customer data platforms (CDP). Unfortunately, it’s not easy to organize fragmented data from multiple sources. To operate efficiently, you’ll need well-curated and timely operations.
In a recent study, an estimated $3 trillion goes down the drain annually due to insufficient data. Therefore, you must discuss this problem ahead as a company. Luckily, CDPs support solving this problem by collecting data from all sources. Then, they organize it, tag it, and get it usable.
Businesses today have added more data than ever before. There’s demographic data, transactional data, and virtually infinite quantities of behavioral data. Sum it all up, and you’ve seen data from anonymous ad impressions to obvious customer purchases to output usage and client service. Customer data is a superset of all the data collected.
Typically this data is collected in silos, whether organizational or technological, creating difficulty for companies to achieve consistent customer experiences across various channels and buyer devices.
The CDP Institute represents a Customer Data Platform as “packaged software that produces a persistent, centralized customer database that is available to other systems.” It’s a prebuilt system that incorporates customer data from all sources and then executes to other methods for shopping campaigns, client service, and consumer experience initiatives.
CRMs essentially store client transaction data. As a result, they do not penetrate anonymous user behavior, are typically concentrated on sales data, and only have restricted integrations to other systems.
DMPs are cookie-based and do not constitute a steadfast customer profile, and integrations mind to be limited to advertising. In computing, DMPs are focused on 3rd-party data, with limited ability to integrate 1st-party data, whereas CDPs have a much more massive focus on 1st-party data.
While some CDPs have developed native execution tools like website personalization, this is not a center functionality for the category. It drives focus away from explaining the underlying data fragmentation problem that companies are experiencing today.
Customer Data Platforms are packaged software that supports companies in determining a vast and increasing problem: the demand for consolidated, accessible customer data. Like most packaged software, a CDP decreases risk, expands faster, costs less, and gives a more robust solution than custom-built alternatives…With careful planning, a CDP will provide the foundation your company needs in the years ahead to meet customer expectations for exceptional personalized experiences.
A single aspect of the customer is only as practical as it is wide and actionable. Therefore, #1, the amount of data sources available to a CDP, is critical, and #2, the number of execution integrations, is essential to unlocking the value of that data. Therefore, you want to have the broadest possible base of data, along with the most comprehensive ecosystem to put that data to work.
Personalized Customer Interactions
Suppose a CDP merely has access to website data. In that case, there are crucial visibility gaps around that customer’s behavior…for example, in your mobile app, customer service system, or in-store behavior from beacons or IoT devices. As a result, it leads to uneven customer experiences and low customer loyalty. Suppose a CDP can only activate data to personalize a customer’s website experience. In that case, there are crucial gaps in customer experience delivery…for example, such as during customer service exchanges, in-store shopping, and web channels outside of your website. It drives needed opportunities to encourage more revenue and nonexclusive activities that could be better tailored.
The availability of data from all origins and integrations to initiate this data to all channels is the linchpin for the value of a single view of the customer.
Benefits Of Customer Data Platforms
- Individual View of the Customer – CDPs are purpose-built to collect data from various sources, unify it to form a comprehensive view of the customer across devices and channels, and make that data ready for other systems. That picture of the customer can proceed with your business and clients to wherever it requires to be.
- Agility – A CDP presents organizations with a mechanism to create and connect a flexible technology stack that adapts to ever-changing consumer behavior and changing technology trends. By focusing on the data foundation, CDPs give businesses tools to collect data and use it anywhere to drive better customer experiences.
- Democratization of Data – The amount of customer data continues throughout any business. Marketing, customer service, business intelligence, and beyond depend on data to drive the business ahead. A CDP democratizes the way to and the capacity to leverage customer data across organizational divisions and consumer touchpoints.
- Unique View of The Customer. Customer data platforms are specifically designed to collect data from various sources, unify them in a complete view of the client in all devices and channels and then make them available to other systems.
- Competitive. The management and review of customer data for decision-making and the production of campaigns will equip them with a substantial advantage when handling disruptive and aggressive challenges. In addition, 53% consider that the transparency afforded by these platforms will make it feasible for their teams to return more quickly to variations in markets or customer preferences.
- Enrich Relationships with Partners & Suppliers. The extensive ecosystems of the groups, including suppliers and partners, are amongst the first recipients of achieving a customer data platform. The main benefit of CDPs is to contribute more segmented and higher-quality synergies with associates and suppliers.
- Compelling Customer and Marketing Experiences. Nowadays, users use more ways and devices than ever earlier and expect to own unified customer expertise in all of them. For illustration, they negatively understand an online advertisement for a product they have already purchased in a physical store. Thanks to the combined customer vision provided by the customer data platform, the company has a complete view of customer behavior that can be used to create a comprehensive customer experience without blind spots. And in turn, improved customer experiences lead to greater loyalty.
- Improve Operational Efficiency. Previously, integrating different solutions and specific tools to view customer data used to consume many resources. In contrast, CDPs centralize client data with ready-to-utilize integrations, which protects many working hours. In extension, audience and business practices can be configured centrally and administered uniformly in the various tools.