A CDP sucks up raw behavioral customer data from multiple systems and houses it in one unified database. It also connects that data to tools like CRMs and CEM systems.
It uses identity resolution to stitch together different identifiers across databases and systems, forming a single profile. It then delivers those profiles to external martech systems for campaign execution.
Unified Customer View
In today’s fast-paced world, with store closures, travel advisories, and productivity software, unified data management is vital for the success of your marketing strategy. This is where CDPs come in, enabling a single view of the customer by identifying customers across all your marketing platforms and data streams. This includes CRM systems, service platforms, and ecommerce engines. Your CDP ingests and unifies this data, eliminating duplicate profiles that impact relevancy and accuracy and providing powerful analytics tools to create an insight-led approach to customer experiences.
This view is called a unified customer profile, benefiting all departments across the business. For example, if someone contacts support via your website, they can see their actions and purchases in one place, up to the minute, so the agent can quickly and accurately provide them with a solution. The unified customer view also helps marketers identify cross-selling and upselling opportunities. This is all made possible by identity resolution, which unifies the customer’s data across all channels and devices, and trait and audience building, which synthesizes data into groups of people.
Data-Driven Marketing
Data-driven marketing is a process of using data to improve and optimize marketing campaigns to deliver better ROI. It is based on understanding what drives consumer purchase decisions and aligning marketing efforts with those factors to maximize customer acquisition and retention.
Customers interact with businesses in new ways and across many channels, leaving behind bits of information each time. A CDP ingests these data points, standardizes them, and transforms them into an easily accessible, unified profile, making it available for use in systems like CRM, analytics, email marketing, and content marketing. One more thing we need to check to report for each month. And many companies have seen the report every month, it is an excellent idea to grow our business. We come across many mistakes in every monthly marketing report, which can help us in correcting our mistakes.
This data allows marketers to create a personalized customer experience that leads to increased revenue and a positive association with the brand. This is especially important when converting potential customers from one stage of the funnel to another or swaying current customers to upgrade or make additional purchases. This can also help marketers deliver a pleasant post-sale experience, which is the key to retaining a loyal customer base that brings repeat business and referrals. Data-driven marketing is also a powerful tool to help companies understand their consumers’ needs and wants, which can lead to product development that is more in line with market demands.
Automation
Automation is automating manual work to reduce repetitive tasks and save time for more meaningful work. It can be essential, such as a shared messaging system that eliminates errors and accelerates the pace of transactional tasks, or it can take on more complex jobs that free up resources to spend time developing new content and strategies.
Customer data platforms ingest data from all marketing technology systems, standardize it and build unique, unified profiles of customers. They use identity resolution to stitch together data sets that reference the same customer and then reformat the profile for different marketing processes and systems, including CRM, email, analytics, A/B testing, content creation, and personalization.
The latest CDPs do this in real-time, so teams across sales, service, marketing, and commerce can make decisions based on a complete picture of every customer. This is what today’s customers expect, and it can only be done by a CDP that harmonizes data that is updated with every touchpoint interaction in real-time. This is why marketers turn to customer data platform software to help them deliver exceptional experiences.
Predictive Analytics
With predictive analytics, marketers can search current and historical data to detect patterns, forecasts, and potential outcomes and predict customer behavior and preferences. It’s commonly used in marketing and sales departments for lead scoring, upsells campaigns, and identifying dissatisfied customers for churn management.
For example, an insurance company can identify high-value customers and target them with upsell offers to increase revenue. Or a home goods retailer can use predictive analytics to recommend relevant products and content to customers, which has been shown to drive conversion rates.
CDPs collect data from multiple touchpoints and integrate it into a unified customer profile accessible to teams across the business. This information is then analyzed to inform future decisions based on customer behaviors and trends. Using predictive AI, these predictions can then be turned into actionable insights like following best action, proactive churn management, and “data-driven creatives” (advertising based on weather, seasonality, or location). With the help of no-code machine learning, non-technical teams can build models and deploy them, even if they don’t have a data scientist.
Data Security
The job of a CDP is to scoop up data from a pretty extensive range of verticals and sources, catalog it into usable information and then connect it all. This is where a CDP flexes its muscle. It ingests, unifies, and harmonizes massive data sets in real time and continuously updates its profiles as customers engage with brands on all their touchpoints.
It also ensures that only authorized users can access the data by implementing a robust system of authentication that uses passwords, PINs, security tokens, or swipe cards to control user access. And it provides a backup of data that is easily accessible in the event of a disaster or breach, allowing you to recover quickly.
When your data is unified in a single workspace, teams from all departments can access it to understand their audiences better and meet customer expectations. This is a vital part of building trust with your customers.
