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In today’s increasingly data-driven world, customer data platforms are a game changer for businesses. As you know, customer data is essential for businesses because it lets owners know their customers better and get more insights into serving them better. Yet, this is only possible with a robust customer data platform.
This post explains what a customer data platform is and why you should invest in one:
What Is A Customer Data Platform?
A customer data platform (CDP) is a software application that helps businesses collect customer data from various sources (email, social media, blogs, videos, connected TV, paid search, etc.). It then manages, analyzes, and stores the data to be used by businesses in various marketing campaigns.
The various data types that customer data platforms can collect include:
Identity data, such as names, email address, phone number, age, gender, income, industry, and social media profiles,
Engagement data, such as website interactions, social media likes, and shares,
Behavior data, such as purchase history, subscription renewals, and shopping cart abandonment.
Attitudinal Data, such as online reviews and surveys,
Here are the reasons to invest in a customer data platform:
1. Reduces Marketing Costs
A customer data platform combines all the information about your customers in one place. It stores and analyses that information, which helps you make more informed marketing decisions.
A customer data platform will also help you understand your customer’s behavior and preferences. This goes a long way to assist in identifying potential customers who are likely to buy your product. The deal here is that it will help you make better decisions about where to advertise and which offers would be most attractive to your customers.
A customer data platform will help you avoid blanket advertising, where you throw ads randomly and hope they will reach your target audience. Blanket advertising is expensive.
Also, hiring a digital marketer on a full-time basis can be expensive if the size of your operation is large and your online campaign is complex.
A customer data platform alleviates the need for a digital marketer because it automates essential digital marketing functions, such as data collection, unification, and analysis, saving you a ton of money in the long run.
2. Create A More Personalized Experience For Customers
You can connect your CRM system with third-party data sources to get even more information about your customers with customer data platforms. This information makes it easier to keep track of the actions they are taking on your website or in-app, their purchase history, and their demographics.
Even better, you will see how long they stay on your site or in-app, how many visits they make each month, and what pages they visit most often.
And if you have a mobile app, information like app usage times, app-related purchases made outside the app store, and what actions they take within the app will also be available.
With this information, you can create a personalized experience for your customers. For example, if you learn that a particular customer likes to buy running shoes from your e-commerce store, you can organize them to make it easier for them to search and order again.
3. Allow You To Track Sentiment Analysis
Many customer data platforms also allow you to track sentiment analysis from social media posts. This tracking capability means that if your customers are tweeting something negative about your product or service, they will be flagged so that the right person can address their concerns before escalating into a full-blown PR crisis. As a result, businesses can:
Understand what their customers think about them and their products.
Take action before an issue becomes too big for them to manage
Build loyalty with existing customers by resolving issues quickly
Improve product development through better feedback.
4. Happier Marketing Team
One of the most challenging tasks for digital marketing teams today is customer data collection. There are a few reasons why collecting customer data is difficult.
First, many customers do not want to provide personal information, especially sensitive information like credit cards or addresses.
Second, it can be hard to identify the different channels through which your customers interact with you.
Third, gathering data from multiple sources can be time-consuming and expensive.
And finally, some consumers might be reluctant to share their data if they believe it will negatively impact their experience with your company.
A customer data platform alleviates all these problems because it automatically collects customer data from various sources, unifies it, and stores it in one place. Your digital marketing team will only need to access and use the stored data in their marketing campaigns. The reduced work and increased efficiency will leave your team happy.
Based on the above reasons, a customer data platform is an investment worth making. Not only does it give you access to customer data, but it also helps you get valuable insights about your customers. The result is that a customer data platform allows you to make informed marketing decisions to boost your revenue.