Significance of Customer Data Platforms: What You Need to Know
Martech Outlook | Wednesday, January 04, 2023
Customer data platform comes with various advantages for organizations, such as revenue growth, optimization of campaigns, and long-term learning.
FREMONT, CA: Customer Data Platforms (CDP) can help organizations use and protect customer data collected across multiple touchpoints.
Organizations use CDP to aggregate customer information into central repositories for easy management and analysis. Users can use these systems to understand customers and segment them for personalized marketing. Compliance teams use CDPs to secure and govern sensitive customer information by using first-party data rather than third-party data.
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Customer data is typically collected from the following sources by CDPs:
• Systems for customer relationship management
• Online social networks
• Websites of companies
• Apps for mobile devices
• Programs that reward loyalty
• Systems for point-of-sale
• Software for contact centers
The key benefits of using CDPs for organizations are as follows:
Creates unified customer profiles: By interacting with customers, organizations can gather valuable data for future business decisions. Because these data come from disparate sources, they are often unorganized and siloed. APIs and SDKs are used to pull this data into CDPs.
CDPs collect data, automatically cleanse it, and perform identity resolution to link behavioral data to PII, such as social media handles and IP addresses. To understand their audiences, marketing, sales, product development, and customer support teams use unified customer profiles.
The following information may be included in a CDP customer profile such as name, Email address, contact information, addresses on the Internet, age, sexual orientation, location, history of purchases, and activity on social media.
Enhances marketing and customer service: Using CDPs, marketing teams and customer service teams can access detailed customer profiles from the tools they already use.
The marketing department: Companies typically serve a diverse range of customers and market to people with a variety of channel preferences, attitudes, and product interests. Different campaigns can be created for different customer segments to maximize a campaign's effectiveness.
Using customer profiles in a CDP, a sporting goods retailer can segment fishing enthusiasts who prefer email communication. For this segment, automated emails may promote lures, rods, and other fishing equipment sales. Using CDPs, marketers can improve customer relationships and increase revenue as they target their efforts.
Service to customers: Agents can also benefit from CDPs because they help them better understand customers. Agents can view recent interactions with customers by integrating CDPs with contact center software. By doing this, agents will be able to understand the customer's issues quickly and won't have to repeat themselves.
Third-party cookies can be replaced: As Google plans to eliminate third-party cookies from its Chrome browser by late 2024, CDPs can help marketers maximize first-party data. In contrast to third-party cookies, which organizations use to track customers' browsing activity across the Internet, first-party data refers to information that organizations collect directly from customers.
It is possible for CDPs to aggregate and organize first-party data and, in some cases, analyze it in order to help marketers maintain personalization strategies without relying on third-party cookies.
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