Customer Data Platforms – why you need them in your business
According to research, data-driven business decisions can result in up to 20% higher ROI. However, for the collected data to bring any company’s strategies to that level of effectiveness, it has to be managed properly. Customer Data Platforms are becoming a more and more popular solution. The CDP market noted a 65% growth in 2018, and according to Forbes, 78% of surveyed companies already have or are in the process of developing a Customer Data Platform.
The key benefits of Customer Data Platforms
Thanks to using CDP, you get a heads-up on a battlefield that is marketing, enabling you to build your campaigns based on the data collected from many different sources, but organized and managed in one place. You don’t have to be limited and you get a full 360 view of your customers to build their image, thanks to orchestrating information from many platforms. The data you use can be related to the customer’s behavior, their identity, their profile, and even personality. That allows you to plan out what kinds of actions to take, to get the best results.
Once you have all the data collected and unified, you can start to segment and profile it, based on whatever guidelines you wish and what fits your business the best. That also lets you predict what the effectiveness of a certain campaign will be. For example, by adding value to a certain segment, you can create a group of customers that fit the profile the best and focus on reaching out to them the most, as they give you the best opportunities, and that means, those actions will give you better results.
According to research, 44% of customers admitted they’re more likely to become repeat buyers of a given company, after having a personalized shopping experience and 56% will stay loyal to the brand that understands them. With CDP, which lets you personalize and target your campaigns, your customers will get a better, unified experience. It’ll build the connection between them and you, and you’ll see it reflected in your business revenues growing.
What to remember while implementing a CDP
Customer Data Platforms are incredibly useful, however only when implemented in the right way. The first and most important thing, as without it nothing will work, is getting your customer data ready to be managed with CDP. Make sure the data that you feed to your CDP is good quality and “clean”. CDPs usually combine information gathered through Google Analytics with data originating from internal sources: recorded conversations between marketers and customers, exchanged e-mails, opinions of customers using web-stores, contact, and newsletter sign-up forms.
What will give you results is the foundation of organized, good quality data, alongside with strong, clear strategy. Knowing what your guidelines are, you can use CDP to achieve the results you’ve planned as well as evaluate your actions and decisions, making changes as you go, if needed. Know, if you want to use CDP to cut costs on operating different tools for different types of data, better your customers’ experience, or grow your with well-targeted campaigns.