CDP has emerged as an effective & empowering technology for marketers, so as to offer a better view about the technology Martech Cube has listed the Top CDP Use Cases
Marketers know that customer data is very crucial to deliver a great customer experience (CX) and is full of insights just waiting to be gleaned. It is the foundation of winning the loyalty of today’s demanding customers. Marketers are increasingly trusting Customer Data Platform (CDP), and the pandemic has boosted this adaptation of CDP. According to Markets and Markets, the Customer Data Platform market is expected to grow at a very high pace over the next 5 years, from USD 2.4 billion in 2020 to USD 10.3 billion by 2025. Investments are already on the rise and CDP investments have grown sharply in 2020, perhaps as a way to get ahead of the uncertainty caused by COVID-19. In 2019, deployments were at 17%, in 2020, this number jumped to 29%.
As a up-to-date digitally aware marketer, you might manage client information that is siloed over various martech databases and stages. The outcome: Fractured client characters that upset your capacity to convey pivotal marketing aspects to clients.
Then, you’re under strain to convey exceptionally customized marketing— at scale and progressively — as clients connect with your image over various channels, regardless of whether it’s social, email, web, or something different.
Progressively, marketing professionals are swinging to a Customer Data Platform (CDP) for help. A CDP arrangement settles your scattered, siloed client information into cognizant client profiles, stores them in one database, and makes those profiles completely accessible to other martech devices.
With a CDP, your association has an arrangement of record — the much looked for after “single wellspring of truth” — that makes your client information genuinely noteworthy.
As research firm Gartner puts it, a CDP can fill in as the keen center point of your martech stack. Different apparatuses go about as the “idiotic spokes,” pulling client information from the CDP to convey the correct promoting substance to the correct client at the opportune time.
Contrasted with individual martech stack tools (otherwise known as the “idiotic spokes) for example, site personalization instruments, CDPs with machine learning have the smarts to give bits of knowledge into past and in addition potential future of the client practices and consumer behavior.
As we have already understood that CDP exists, because customer data has become crucial for taking business decisions as well as marketing operations, so let’s first check
What is Customer Data Platform (CDP)?
The definition of Customer Data Platform according to The CDP Institute is “packaged software that creates a persistent, unified customer database that is accessible to other systems.” Primarily, it’s a prebuilt system that centralizes customer data from all sources and then makes this data available to other systems used in business and marketing campaigns, customer service, and all customer experience initiatives.
A CDP is a data unifying software, and adding it on top of your MarTech stack helps in managing your customer experience across every touchpoint marketing, product, and customer service. It absorbs data of an enterprise from all sources such as structured or unstructured, batch, streaming, transaction, or demographic, and makes it available to all enterprise users.
Defining the CDP Use Cases in liaison with the vision of the marketer is critical to the defining scope of their targets. Let us quickly have a look at some of the most struggling CDP Use-cases, and how a CDP helps in simplifying the resultant deliverable.
Here are 5 motivations to consider a CDP as your martech stack’s pivot:
CDPs Provide the Utmost Complete View of Your Customer horizon
A CDP gathers and gives you a chance to deal with your associated client’s information crosswise over web, email, social, call focus communications, and different channels. The data contains both known and unknown information that elements the practices, interests and activities of your clients all through their disconnected and online cooperations with your association.
This first-party information gives a fully nuanced perspective of your clients. In that capacity, a CDP gives bound together client information which can be used in 1:1 customized, continuous encounters over numerous promoting channels.
No other innovation can furnish you with such a perplexing, complete perspective of your client that can be utilized in such a significant number of ways. For instance, a DMP is intended to fundamentally secure outsider information about clients alongside your site’s unknown label information. DMPs push that information to show advertising systems for significance in acquisition marketing.
With Machine Learning, You’ll Gain Insights About Your Customers’ Past and Future
Settled client profiles are extraordinary. In any case, they’re just the building obstructs for your prescient showcasing activities.
A CDP that uses machine learning can break down past practices of your clients and give prescient expository markers. With machine learning connected to a database of settled client profiles, you increase noteworthy bits of knowledge that empower you to convey the best client encounter over numerous channels.
For instance, with machine learning connected to client information, you can accurately time an email. The email will arrive in a responsive client’s inbox when he or she is effectively drawn in and prone to purchase.
With a CDP that coordinates machine learning, you’ll create further experiences about clients that can move new substance and battle thoughts. These activities additionally demonstrate that you really comprehend your clients’ needs and interests.
A CDP with machine learning takes a considerable measure of the legwork — and mystery — out of your activity as a computerized advertiser. The CDP consistently finds out about your clients, without you having to physically pre-characterize and rethink standards, for example, “If a client clicks A and does B, they are probably going to make a move C.” That’s the legwork part. Furthermore, such principles are frequently self-assertive and uncertain, requiring a specific measure of mystery on your part.
Your Organization Can Save Money
Great martech suites from significant merchants are regularly at the focal point of an association’s martech stack. In any case, there are impressive drawbacks, beside the way that your client information is frequently siloed in these suites’ databases.
You’re bolted into the merchant’s biological community, which implies you may pass up a major opportunity for rising advances or best-of-breed devices. Any custom capacities require heaps of discussion with the seller and additional expenses, because of the exclusive idea of these suites.
Talking about expenses: Instead of living inside a costly martech suite, you can spare cash by utilizing a CDP at the focal point of your martech stack alongside more affordable, downstream tools and practices (the spokes). Indeed, most advertising and marketing associations (66%) today support a multi-merchant approach versus a conclusion to-end stage from a solitary seller.
You’re in Charge
CDPs don’t require profound specialized aptitudes to convey and oversee, in the same way as other different stages and instruments. Accordingly, a CDP is a “marketer oversaw framework.” The showcasing division can design and deal with the CDP as opposed to depending upon the corporate IT office. You, as a marketing professional, choose what goes into the CDP and what it opens to different frameworks. You can roll out improvements without requesting IT’s consent — giving you more prominent self-governance and empowering you to move substantially more rapidly.
Building Trust With Your Customers
With a CDP as the keen center of your martech stack, you’ll have more significant discussions with clients in the channels they incline towards. From those discussions, you’ll construct trust by demonstrating that you really comprehend and value your client. Trust causes you to increment changes and client reliability, which thusly can help deals — and all that really matters.
The importance of customer data is not just limited to marketing, it is extended to various parts of any business. Other than marketing, customer service, business intelligence, etc. all depend on the availability of data to drive the business forward. A CDP democratizes access to and the capability to leverage customer data across organizational departments, points of contact with the client, and customer touchpoints.
– Data can be synced with CRM systems so that the sales teams have better knowledge about a customer
– Data can be sent to marketing platforms to arrange highly personalized campaigns in real-time
– Data can also be used in reporting tools to help integrated reporting at various levels of aggregation to audiences ranging from leadership to operations teams.
Consumers demand experiences that are personalized to them, more than ever. According to a report published in 2019, 63% of consumers want personalization as a standard of service and believe they are identified when special offers are sent.
No marketer can truly excel without personalizing their marketing or customer experience campaigns.
Huge enterprises have strict requirements for class-leading personalization abilities developed into CDPs as they enable you to build highly-enriched customer profiles and serve personalized content, and recommendations on the basis of customer behavior, lifetime value, customer lifecycle stage, previous purchases, wish lists, etc.
Every time a customer engages and interacts with your brand, they send you a signal that you can utilize to personalize your marketing, but only if you have access to the data. A CDP provides you with access to a dynamic and actionable view of every one of your customers, which supercharges your segmentation and helps you create more personalized content.
Adding Context for Next Best Action
It’s simple business sense to concentrate on customer experience: As per a PwC’s study, customers would pay up to a 16% premium on products and services if they get good customer experience but 32% of customers will stop doing business with a brand they loved after one bad experience.
With a CDP strategy, you can perform advanced analytics on your combined customer information and utilize the results to predict the next best action for any customer in any context, from marketing campaigns to customer service. This means a better and more satisfying customer experience, which can turn into greater loyalty, an expanded relationship, and eventually more sales and better business opportunities.
Using Customer Patterns for Marketing Strategies
A Customer Data Platform supports marketing and analytics use cases that help in driving hyper-personalized offers and communications, micro-segmentation, next best action or offer, and superior customer experience. A CDP develops valuable context at enterprise scale so teams across the company can develop and answer complex questions about your customers. As a result, you can deliver the most relevant, timely, engaging experience to customers across every touchpoint and channel.
Customer data platforms lay the foundation for your organizational needs in the coming years and will help you to tackle the dynamic changes in customer expectations and deliver more personalized experiences. Defining the right and connected CDP Usecases hence becomes the need of the hour.
Customer Data Platforms have the potential to create a single customer view. But the real value of that is making it actionable and gaining the insights to do so. CDP helps marketers to tie the data together between the systems in real-time, enabling them to segment and target their customers better. The success of a CDP largely depends upon the data on which it feeds and how you accommodate it across your organization.
ABOUT THE AUTHOR
Chandrima is a Content management executive with a flair for creating high quality content irrespective of genre. She believes in crafting stories irrespective of genre and bringing them to a creative form. Prior to working for MartechCube she was a Business Analyst with Capgemini.