A Customer Data Platform (CDP) is a management system mainly dedicated to marketers, which is used to create a unified customer database that will be accessible to other systems and divisions within an organization. What CDPs do best is gathering customer data from multiple sources, clean it and combine it, to create a single, comprehensive customer profile.
This highly-structured data is then made available to other marketing systems and divisions such as sales or product development for better decision-making and customer interaction.
Some CDPs can also provide other functions such as predictive modeling, content marketing, marketing performance measurement analytics, or enterprise campaign management. But regardless of how CDPs can differ from one another, most are marketer-managed. They are also made up of a unified database for customer profiles, behaviors, and other such data. They are also accessible by external systems to support any initiatives that the company has in relation with their customers.
In any case, data-driven marketing activities and strategies, which are based on the customer's needs, interests, and behavior, will increase sales by as much as 20%. If in 2016, the CDP industry was worth around $300 million, by 2019, that sum is expected to reach $1 billion.
The numbers presented here, do make complete sense. It can only stand to reason that people will buy more things that appeal to them. It means that the more relevant you make the buyer's journey, the more you will drive engagement, conversations, and, ultimately, sales.
CDP and Personalization
By connecting data and various systems, and by streamlining the work of data scientists, CDPs can drive highly-personalized marketing strategies.
You will be able to use artificial intelligence (AI) to determine the window of opportunity when customers are most likely to make their second purchase. You can look at historical data and similar patterns to identify, which would be the best personalized second-phase purchases.
You can also build look-alike models based on numerous factors such as demographics, behavioral and purchasing characteristics, and automate processes to reach more customers at the same time. With this high degree of automation, you can create highly personalized messages and promotions and deliver them at the right time via the most appropriate channels.
It's important to remember that most brands are juggling between several channel execution vendors at a time. It is limiting their orchestration to a single channel. But with the right CDP, they can build segments that will meet specific business objectives and immediately validate segment size. They can also automatically select optional channels of communication, based on the customer's past behavior.
A CDP can provide a user interface that's built on top of a purpose-built data store. In other words, it's able to deduce and anticipate the customer behavior, allowing it to create and manage entire marketing campaigns on its own. One such platform can define customer attributes, which it will use to target the right audience segments and ensure cross-channel synchronization. IT can also test and measure these, without the need for any human intervention. For more information on Customer Data Platforms and personalization, contact us today.