We’re in the golden age of data.
Indeed, companies have vast amounts of consumer data at their disposal. Crucially, what they also have are increasing numbers of tools and tech that can filter through all that information to harness its full potential like never before.
However, the complex nature of gathering, consolidating and using so much customer data means that most companies are utilizing disparate technology platforms that lead to siloed data difficult to connect.
Just one-third of companies are effectively making use of this data in order to enhance the customer experience and, ultimately, improve the bottom line, according to SAP.
And that is a shame.
If managed correctlyOpens a new window , all that data can identify myriad opportunities along the customer journey, predict future consumer preferences and behaviors, and even align sales and marketingOpens a new window – among plenty of other operational benefits. Moreover, at a time when marketers are looking for accurate ways to tailor their campaigns’ interactions with individual customers, data can be the key piece in the personalization puzzle.
While data is at the core of marketing and sales, though, it won’t actually provide much value if a company’s multiple data pools aren’t systematically connected.
While most of us are aware of the data, knowing how to best utilize it is a different story. Whether we simply don’t know where to begin, or if our teams lack the tools required to connect multiple data silos, most marketing teams struggle to align their firms’ data management models.
Enter the customer data platform (CDP).
CDPs are able to link the data from different channels and silos across a company’s operations to build a unified customer database accessible by other systems.
That’s how Amazon, Netflix and LinkedIn, for example, ensure they gain valuable insights from their data to build strong customer relationships and deliver the right product or service.
CDPs are next-level CRMs
It helps to think of CDPs as digital CRMs – on steroids.
Admittedly, the essence of a CDP is very similar to CRM – both are focused on managing an organization’s interactions and relationship with current and potential customers by housing data in a single place.
But the data revolution of recent years has outgrown the capabilities of CRMs, which were built at a time when datasets were far simpler and not nearly as vast. As such, these systems simply lack the capability to collect and store all this information, or to analyze it.
This is complex and chaotic behavioral data that can be used not only to manage customer relationships but also to build detailed profiles of each individual online visitor. CDPs can use this information to paint three-dimensional pictures for marketers of their consumers, from the products they’ll most likely buy to the best price points for each person, and even to their personal interests.
Actionable insights
CDPs offer marketers the ability to shape effective omnichannel customer experiences.
As users engage across various touch points, those interactions will feed new data into CDPs that can be used to help companies better understand their customers and provide them with an even more seamless experience.
This evolving tech is able to convert all the information into a holistic overview of each customer that can be fed into any number of business-critical functions.
To name just a few:
- It can greatly improve the user experience by helping companies offer their customers personalized ads, content and recommendations.
- The software can identify the best moments to suggest useful tips to keep customers engaged.
- Sales-relevant data can inform sales teams as to the best products to offer each client, as well as the ideal times to reach out to specific individuals for sales and upsells.
- CDPs can ensure that marketing departments are sending out e-mails with the most relevant content for each user, with tailored messaging and offers.