A customer data platform, or CDP, is a system that allows companies to collect and process different types of customer data to make better decisions about how to serve their customers. It’s the best way for marketers to be able to analyze both their business data as well as external sources like social media platforms. A CDP can help with everything from targeting ads more effectively based on behavioral information collected through cookies, analyzing user behavior on your website, understanding what content resonates most with your audience based on social media activity, amongst many other things!
Single Source of Truth
One of the primary benefits of using a customer data platform is that it is a single source of truth for your customers. In this case, take the time to research all about customer data platforms. When you explore online sources, you may come across the article useinsider.com/what-is-a-customer-data-platform-cdp-and-how-does-it-compare-to-crm-dmp-and-personali that discusses in detail what a customer data platform is and how it compares to CRM among others. In this way, you will be able to have a good idea of which system is more appropriate for your business.
CDPs can be used to create personalized experiences and offers based on what you know about each customer. This means that you can tailor your messages and offers to each individual in a way that is not possible when you simply use customer data for reports or ad hoc analysis. Technologies such as predictive analytics, machine learning, rules engines, and advanced matching algorithms combine with the CDP platform functions to enable:
Individualized Content Delivery
You can send out emails and other personalized messages, as well as personalize your website and other digital channels. The CDP allows you to take a single customer view, including all of their attributes from any data source, and deliver individualized content based on that information.
You can also apply dynamic segmentation using real-time events or triggers such as purchases, website visits, page views, and so on. Using the CDP platform’s segmentation capabilities you can also use predictive models to dynamically create segments based on individual customer behavior or external events such as weather.
You can personalize your offers in real-time using any device including mobile devices via SMS text, meaning that you can deliver instant offers or discounts to your customers as soon as they come into contact with you.
Enhanced Targeting and Relevance
CDPs allow for the creation of enhanced customer profiles, which let you combine external data from partners such as retailers so that if a person walks past their local store in real life, this information is sent to you and can be merged with your customer data. This allows for a complete picture of each individual in terms of their location, behavior, and history, enabling highly relevant messages and offers.
CDPs also allow marketers to orchestrate campaigns across multiple channels such as email, mobile SMS text messages, social media sites, websites, apps, and traditional channels such as direct mail. Using cross-channel orchestration capabilities, marketers can deliver highly personalized messages at scale to each customer across all of their preferred messaging channels, ensuring that customers receive the right message in the right way at exactly the right time.
Dynamic Creative Optimization
CDPs also allow for dynamic creative optimization, which uses real-time data to ensure the right message is sent to each customer based on their preference and behavior. Thus, you can update your ads or content instantly. This means that if a particular ad creative doesn’t resonate with a person, it can be switched to another one.
CDPs allow marketers to deliver personalized pricing to customers, so you can respond instantly if a customer is on the phone and offer them an attractive discount. You can also personalize your prices for individuals based on their previous buying behavior or other attributes such as loyalty status. This has been shown to dramatically increase conversion rates.
CDPs enable marketers to use analytics to generate new insights about their customers, which can inform the customer journey. This means that you can act upon what is learned and make changes or improvements based on data rather than assumptions alone, making your marketing more effective by delivering personalized offers at scale.
If you’re looking for a way to use customer data more effectively, a CDP may be the answer. With it, you can create personalized experiences and offers based on what you know about each individual while also managing your relationships with them. The benefits of a customer data platform include increased revenue, better decision-making capabilities, and improved customer service which will lead to stronger business relationships in the long run. In addition, because they are so cost-effective due to their ability to scale across an entire organization without any additional investment from IT or HR teams, there is no downside!