Over the years, marketers have come to learn the importance of utilizing consumer data to build brand awareness, increase online traffic, reach company goals, and drive sales. As such, marketers have been working with businesses to effectively gather, organize, and integrate data into successful campaigns that meet the needs of their target audiences while setting them apart from the competition. Seeing as how this is a detailed and time-consuming process, customer data platforms (CDP) have become an increasingly popular resource to rely on.
What is a Customer Data Platform?
Customer data platforms are prebuilt technologies commonly used by marketers and customer service experts to collect and review key consumer data. This data essentially gives them insight into existing and target customers’ demographics, lifestyles, preferences, and shopping behaviors which can be used to create more personalized marketing, sales, and service experiences across the board.
When used efficiently, it has helped marketers and brands to create authentic connections with target audiences while reaching company goals. As you might imagine, the use of CDPs has become so popular that heavy-hitters in the business tech industry like Salesforce have joined the club by offering products like Salesforce CDP to accommodate the needs of their clients.
Why Invest in a CDP?
Now that you have a better understanding of what a customer data platform is, let’s take a closer look at why it would be beneficial to invest in one for your business.
All Consumer Data in One Place
While CDPs vary, one of the biggest advantages of using one in your marketing and sales efforts is having all of your consumer data in one platform. Trying to collect data from multiple marketing and customer service databases and platforms is not only time-consuming but difficult. Using a CDP, however, can make a world of a difference. As these platforms can be integrated with your CRM and other consumer and marketing channels, users have easy access to information including online transactions, in-person purchases, location, demographics, email engagement, website patterns/behavior, and more.
In-Depth Consumer Comprehension
In order to personalize marketing, sales, or service experience you need a clear understanding of your customers. You have to know things like where your customers are located, whether they prefer online or in-store shopping, which products and services they prefer, and even their concerns or frustrations to finetune products, marketing campaigns, and online/in-store services, to best accommodate their needs and behaviors. Rather than doing tons of research or wasting money and time through trial and error, a CDP gives you an in-depth look at each customer in real-time.
Saves Marketing Dollars
Businesses large and small invest hundreds if not, thousands of dollars into marketing. Essentially, building brand awareness and connecting with target audiences plays a huge role in the success and growth of a business. Unfortunately, however, these very same businesses find themselves throwing money down the drain each year as they try implementing marketing plans that have little return on their investment. CDPs, provide an economic solution. By providing a clear picture of existing and potential customers, marketers and sales teams can quickly identify which marketing/sales strategies will work and stop investing in strategies that aren’t as effective.
Increases Revenue
Last, but certainly not least, having a CDP can greatly increase a brand’s potential to generate more revenue. If used appropriately, marketers and customer service representatives can leverage the information to customize experiences from start to finish that encourage consumers to make a purchase.
Taking a mass approach to marketing, sales, and service experiences will only get brands so far in today’s modern society. Today’s consumer looks to spend their hard-earned money with service providers who have taken the time to understand who they are, what they need, and customize their products/services and experiences to accommodate them. CDPs provide the foundation for marketers and customer sales personnel to do just that while saving time and money along the way.
