Customer data platforms (CDP) are critical to improve customer experiences and for enterprises for unlocking business opportunities, operational efficiency and stability for the future.
As companies gather customer data from various touchpoints, customer data platforms help them to use data precisely and protect information. The importance of the platform is rising in the digital era as companies are putting a lot of effort into gathering target-based data from the millions, especially the ones they want to reach. And in this process, technologies like automation, AI/ML, data analytics, and the cloud are crucial and have become inseparable parts of companies.
Business leaders are talking about customer data platforms because it uses first-party data and helps secure and govern sensitive customer information at scale.
Reasons Customer Data Platforms Are Critical
Customer data platforms provide in-depth insights into customers and help increase the customer experience bar. Here are some reasons enterprises should know about leveraging CDPs in their business.
Provides Rich Customer Data
The customer data platform serves as a single point for customer data accumulation. With the changing online activities, IT leaders need to adjust or replace technology to be able to collect, unify, and activate data in real-time relevant to the business. A real-time CDP feeds the updated customers’ profiles that enable detailed information about them and for solutions, they are looking out in their buying journey. This allows marketers to gain richer knowledge about customers, unify their data into a single view and segment information according to the marketing strategy.
Third-Party Cookies Are On Their Way Out
The digital marketing landscape witnesses a new transformation—the end of third-party cookies, which could be a boon for enterprises leveraging customer data platforms. This is driving marketing leaders to evaluate first-party data strategies after visualizing data insights with the help of automated customer data platforms backed by analytics and AI.
The reduction of third-party cookies will have significant impacts on revenue generation and other marketing tactics. This will reduce insights on Return on Ad Spend (ROAS), reducing marketing budgets and scaling ROI. Knowing this, enterprises are turning towards adopting a first-party data strategy powered by a customer data platform that will enable marketing leaders to collect and unify data directly from the buyer and build strategies to deliver relevant customer experiences.
Aligns with New CX Standard
Customers demand personalized experiences. Enterprises should prioritize this to stand out in the marketing battlefront using CDP. As technologies like AI and machine learning empower CDP, the data collected and unified through the platform helps marketing leaders to augment personalized communication with customers and present improved customer experience across channels. With so many enterprises competing for limited consumer attention on different channels, delivering relevant messages at the right time is how companies will stand out. An efficient CDP will enable personalization of the data, that can help create the experiences customers crave.
A Note to Enterprises!
Enterprises need to market efficiently during an economic downturn, to be able to sustain and outlive the slowdown.
In times like these, marketing leaders need to be more efficient with their data collection and storage, which can be best done by a CDP. It enables fine-tuning and updating of customer profiles so enterprises can actively continue their marketing efforts. Investing in and utilizing a CDP to drive data strategy increases customer loyalty and delivers the impact needed when market circumstances are challenging.