A Customer Data Platform (CDP) helps you get insights into your audience’s needs by combining and evaluating data from a range of offline and online customer data sources. It lets organizations build faster customer experience strategies at a lower incremental cost. So, CDPs can collect data from all those sources as marketers need it to create a thorough picture of each customer to market efficiently.
The global Customer Data Platform (CDP) market size is expected to grow from USD 2.4 billion in 2020 to USD 10.3 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 34.0% during the forecast period.
Why are customer data platforms becoming crucial?
The marketer’s world today has become too convoluted with increasing customer expectations. Loyalty goes to the companies that can win through their first impression with unique, personalized communications in real-time that outperform conventional marketing and span channels & devices. And so far, an average marketer deals with 28 different marketing technology vendors, with an increasing volume of data from numerous devices, channels, and core applications. Managing all the distributed data and quick actions on it are becoming trickier by the day.
The CDPs can help reduce these intricacies by providing an integrated customer view, generating insights through segmentation, and facilitating the data activation by distributing it to different marketing technologies.
How Can CDPs Improve Customer Experience Initiatives?
- Enhanced customer journey – A primary reason marketers invest in CDPs is because these platforms enable better personalization. By evaluating customer data and creating this golden record, a CDP helps you join the different customer touchpoints across all channels to analyze and elevate an engaging customer journey throughout every step they take.
- Customizations for Customers - CDPs allow marketers to create detailed and comprehensive customer profiles by gathering and combining information from various data silos. For example, CRM systems, emails, POS, and websites. While customers may ignore mass marketing, text messages, or personalized emails, make them understand that you see them as a person rather than a number in the database. Using CDP’s available data, a targeted message is expected to get their attention and influence them. It will result in a useful conversion.
- Real-time Communication – Marketers often spend more time organizing and cleansing data to discover trends. And when they have adequate data to act and create a customized campaign, the opportunity may be lost! Real-time communication, however, helps in building customer relationships and generating sales at a critical time. With the CDP, you can use consistent, integrated data to provide your customers with appropriate content and offers at the right time and understand who and where they are and what they require.
- Improved relationships with suppliers and partners - The companies’ extensive ecosystems, including partners and suppliers, are among the first ones to benefit from implementing a CDP. According to the Forbes study, CDPs' main benefit is to offer more segmented and higher quality interactions with partners and suppliers.
- Democratized Data – The customer data value continues all over any business. Marketing, customer service, business intelligence, and past depend on data readiness to take the business forward. The CDP democratizes the ability to leverage customer data across multiple departments and customer touchpoints.
- Agile process – A CDP offers organizations the tool to develop and connect an adaptable technology stack that fits in the continually changing customer behavior and evolving technology trends. CDPs focus on the data foundation and give businesses the tools to gather data from everywhere and use it anywhere for superior customer experiences.
- Operational Efficiency – A CDP unifies customer data with maintained turnkey integrations that saves hours of integration tasks. Moreover, audiences and business rules can be established centrally and applied across multiple tools to save a massive amount of duplicated effort.
A Customer Data Platform makes the buying process effortless and comfortable for your customers by providing you the relevant information and tools. Hence, you can stand out from your competitors and your customer data at the core of your marketing initiatives.
Besides, by combining all the online and offline customer data and offering it back to you in real-time, the CDPs let you create highly tailored customer experiences. As a result, you will surely see your engagement levels rise high and conversions increase.