The Customer Data Platform is capable of creating unified and centralised databases that provide major competitive advantages.
It is an indispensable tool in digital transformation and during 2020 alone its implementation in companies grew by 29%, a trend that has not stopped growing since then.
- Why is the Customer Data Platform on the rise?
- Benefits of the Customer Data Platform
- Making the most of data in your digital transformation process
Why is the Customer Data Platform successful?
The global pandemic has forced businesses to interact with their customers online, accelerating digital transformation, and has made the Customer Data Platform a key element in facilitating this transformation efficiently.
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Since 2020, the CDP sector has grown and currently has around $550 million in funding.
Companies generate a large volume of data on a daily basis by interacting with customers, and this amount of information will only increase over time.
Therefore, you need a system that can analyse, unify and filter this information to make it useful for your strategy, and a Customer Data Platform can help you achieve this.
Exponential increase in customer expectations
Today, the majority of customer interactions are digital, whether it is online shopping or consulting through various digital channels.
Until now, data collection and customer interaction have been approached as separate issues, but we need to start looking at them as an entire customer database in order to better understand customers and make better decisions for the business.
73% of companies recognise that CDPs will be critical to a positive customer experience as consumers themselves increasingly demand personalised and valuable user experiences.
What does the future hold for CDPs?
The Customer Data Platform Institute predicts that the CDP industry will reach $1 billion by the end of this year.
In five to ten years’ time, every company will have an online business and it will be up to the customer to decide through which channel to communicate with the company. Communicating with your customers in the right way will depend on knowing them well, and a CDP will be crucial for this.
The real value of customer data platforms goes beyond analytics, as they allow you to get to know your customers on a personal level. As Customer Data Platform technology becomes more sophisticated, companies will be able to generate strategies that are increasingly competitive with their competitors.
Benefits of the Customer Data Platform
A potential customer may start with an organic internet search that leads to a blog post. The next day, he visits our website from his phone. Two days later, he subscribes to our company’s email updates. Then, he doesn’t visit our website again for a month, and finally, he comes back to our website and signs up for a monthly subscription to become a customer.
This could be a real case, which without a Customer Data Platform, would be very difficult to track. We would have all this contact data, but it would be stored in different places. Without a Customer Data Platform, we would probably only be able to do an analysis of the raw data, whereas with a CDP, all those interactions are brought together across different data sources and stored in one profile. This way, we can have a complete picture and a better understanding of our users’ behaviour and actions.
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This way, marketers can create better campaigns, create personalised experiences and improve customer conversion and retention rates.
Who needs a Customer Data Platform?
Brands that need to implement an omni-channel strategy need a CDP that empowers them to do so.
A customer data platform can help orchestrate cross-channel information and manage campaigns, enabling real-time customer feedback.
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Traditional marketing campaigns alone are ineffective in meeting the demands of customers, who increasingly expect more personalised and valuable experiences.
The Customer Data Platform has the ability to analyse, combine, segment and deliver data to platforms to tailor the digital experience to each stage of the customer cycle, making customer engagement easier, cheaper and more effective.
Benefits of platforms
Based on the above, if you want to opt for an omnichannel strategy and have not yet implemented a Customer Data Platform, we recommend that you do. Here are some of the advantages you can gain from using it:
- All data in one place
It allows you to integrate information from different sources to better understand your customers and provide them with solutions, even before they ask for them.
- Find new segments of your target audience
Make it easier to segment your customers, apply analytics and find new segment possibilities to address more personalised messages.
- Save time costs
Analysts have a bird’s eye view of all the data which allows them to work with the information in less time and data maintenance also decreases.
- Easier to comply with legislation
Having your data in one place allows you to comply with GDPR and E-Privacy by monitoring all your contacts with a single source.
- Increased revenue
Create much more effective marketing opportunities by achieving higher conversion rates.
Currently, you need to connect CDP platforms to data silos. These silos are warehouses of information, which have been created so that specific functions such as accounting or sales can be performed correctly. CDPs collect data from all functional and channel-specific silos in the company so that they can be analysed as a whole.
Making the most of data in your digital transformation process
As part of the digital transformation process, companies have turned to CDPs to launch new initiatives, focusing on the data that matters most to become more efficient and profitable. Here are some examples.
This market-leading brewer owns well-known brands such as Budweiser and Corona.
Its operations are based on 1000 different data sources, including DMP, mobile devices, social networks, e-commerce, customer service, etc. and more than 70.1 million customer records. Ab-inbev has implemented a Customer Data Platform to centralise and analyse the huge volume of customer data it generates, and to do this efficiently.
Japanese retailer PARCO is using an omni-channel strategy, combining data from its mobile app with information ranging from IoT data to web browsing habits to weather information.
The company has supported its CDP strategy by making it more flexible and easier to update in real time, which has helped it see its sales soar.
The brand turned to a CDP platform to segment their audience and identify those most likely to buy, personalising their customer journey.
As a result, they exceeded their initial goals and now use customer information, post-purchase and predictive data analytics to design new products and services that generate more revenue.
With the development of digital business, having an automated system that manages and stores all customer information and data is becoming increasingly important.
Implementing a customer data platform (CDP) allows every company to achieve its most coveted goals: saving costs and increasing revenue.
If you want to learn more about this technology, or need support from our certified experts, Yeeply is here to help!