With the progress of digitalization, handling consumer data becomes challenging as it produces heaps of data. As the user research services and products, or fill out forms, reviews or place an order or browse the website, heaps of data is produced. Over 2.5 quintillion bytes of data are produced by humans every day. There are 18 zeros in a quintillion, so that’s a massive amount of data. Let us see about CDP for business.
Data analytics and marketers are doing their best to figure out the ways to handle the data to drive the marketing campaigns efficiently. Increasing conversion rate, customer loyalty, optimizing customer journey are some of the critical objectives of managing data.
The blog covers all aspects of how CDP helps handle the customer data and the various types of CDP involved in data management.
The digital data speed and the sheer volume are difficult to comprehend and overcome the conventional database software. However, the objective of the CDP is to manage the data flow. The most efficient way for CDP to collect this data type is through their SDK, and most CDP can ingest data from other software and systems like batch ETL transfers.
The data type of a CDP can work includes:
Events: Behavioral data which arises from customer’s action on a website, app, or a mobile browser
Transactional Data: The data collected from research, purchase, returns, and other means of the eCommerce system
Customer Attribute: This type of data includes contact details, names, addresses, and other personal information
Customer Service Data: This includes the length of interactions, live chat data, NPS score, Frequency, and other data from the CRM system.
Campaign Metrics: This data type includes reach, engagement, impressions, and other metrics from campaigns.
With many similar acronyms and descriptions, it is easy to get overwhelmed with the data that best suits your requirements. Data management platforms (DMP), customer data platforms (CDPs), and customer relationship software (CRM) are immensely popular data gathering software. To come up with a proficient solution, it is important to understand the distinction between these, so you can precisely evaluate and choose the right solution for your business requirement.
The most appropriate way to foster consumer loyalty is to provide your users exactly what they want. A high-quality, consistent, and personalized experience can achieve the desired results. CDP makes it possible to bring these experiences to the scale, personalizing the journey of the consumers. Furthermore, CDP enables loyalty-building strategies to solve the problems related to siloed and fragmented data. This helps in arranging the customer data so that it makes personalization at scale, though personalization tools are not always a part of CDP.
If the consumer data is siloed, you will not deliver a consistent experience for your users. Similarly, providing an omnichannel experience is highly impossible without a central data hub.
– Online to Offline Connection
Merge offline and online activities to develop an accurate user profile. Classify customers from various online activities when they enter a store.
– Customer Segmentation & Personalization
According to user behavior (LTV, RFM, prediction), segmentation consumers subsequently provide an omnichannel, personalized experience throughout the whole consumer life cycle.
– Predictive Customer Scoring
Enhance your user profiles with predictive data such as churn, purchase, visit, and email open.
– Lookalike Advertising and Smart Behavioral Retargeting
Integration with Google Ads, Facebook Ads, and Analytics & DoubleClick allows you to leverage derived insights from the tool to run powerful user acquisition & retention (lookalike) marketing campaigns outside your business site.
– Product Recommendations
Create and use various recommendation models like “customers also bought” or “view similar products” and provide the best shopping experience to drive more engagement, boost brand loyalty, and sell, cross-sell or up-sell your services/products.
– Conversion Rate Optimization & A/B Testing
Rapidly transform the look of your pages. Utilize smart website overlays/pop-ups, or send cart abandonment notifications and emails to give a boost to your ROI. Create various designs and figure out which variant can provide better performance with the automatic A/B testing feature.
– Omni-Channel Automation
Guide your users through their whole lifecycle with customized and timely notifications sent to their most preferred channel. It significantly increases your chance to both keep a loyal customer and acquire a new customer.
– Email Deliverability Enhancement
Boost email open rates. The AI-powered algorithm can efficiently determine the most suitable distribution time for each customer based on their email opening rates and reach them at the optimal hour.
– Reviews Optimization
Get more and better online reviews from your consumers through NPS survey analysis and highly personalized omni channel communication
If you think your business requires a CDP, it’s important to invest some time in understanding what you already have internally to manage your customer data efficiently and how the implementation of CDP can help in increasing your business performance. The most significant thing to remember is that you should use its intelligence to provide great customer experiences. This was all about CDP for business.