How a Customer Data Platform Could Be Working Hard on Marketing Your Business | Let’s talk customer data. How much are you collecting and how much are you using it? Are you collecting the right data and truly maximizing its potential?
These are the questions that companies need to be asking themselves right now. Many businesses are already being empowered by sophisticated, AI-driven customer data platforms (CDPs). These not only store data but they also provide crucial insights and automate powerful, targeted marketing efforts.
Are you missing out? Should you join these businesses and invest in an up-to-date CDP? Here we take a look at how these data platforms work and what they can do for you and, just as importantly, for your customers, too.
What data can CDPs collect?
First of all, your CDP will collect all basic data which you will almost certainly already be collecting. This is information like names, delivery addresses and purchased products.
This might be where your customer data collection currently stops. However, good CDPs have the ability to do the following:
- Link up all a customer’s online and in-store purchases
- Follow your customers’ journeys on your site, including their browsing, recording items left in baskets, and whether or not the customer returns later to complete the purchase
- Provide insight into customer’s engagement with your marketing campaigns and social media pages. Do they click on links in emails? Do they follow you on social media and, if so, on which platforms?
- Collate a customer’s survey and review data
The result is a full customer profile, an individual dashboard that can tell you the following for each and every customer, no matter how large or small your business is.
10 things a customer profile could be telling you
For all your customers, by using a CDP, you could know:
- What they’ve bought from your stores
- What they’ve purchased online
- The products they tend to browse
- Their typical spend
- How often they purchase from you
- Whether there are items in their online basket
- Their loyalty balance
- The marketing channel they tend to interact with most
- The social media ads they’ve viewed
- How they rate your products, plus much, much more
What makes a CDP so powerful is that it connects all your customer touchpoints: store visits, website interactions, loyalty programs, social media, email marketing, customer service interchanges, and others. This is presented for each individual in one central profile, also known as personalized customer microsite.
The possibilities of drawing together all your customer information from all your touchpoints into a single profile and linking it with automated marketing are far-reaching. Omnichannel automation, as it is often known, is a path that many businesses are following.
The benefits for your customers
Increase transparency and build the trust of your customers by giving customers access to their personal microsite. By delivering a consistent experience and by personalizing the experience through their profile, you can build a better relationship with your customers.
If you have their trust and your customers can see the benefits of giving you access to information, they are more likely to help provide more. For example, they may be more inclined to use offline check-in features and allow your staff to capture purchase data in-store using POS technology. The relationship is mutually rewarding.
How your marketing squad could use a CDP
Your marketing team always wants to create the most targeted, personalized campaign for maximum efficiency and best conversion rates. To do this, they need to know what spurs customers to make a purchase. They need a clear understanding of how your customers behave.
A good customer data platform can provide this information. It allows you to funnel your customers in numerous ways for targeted marketing. You could, for example, identify groups who shop mainly at weekends, those who only buy products on offer, those who openly champion your products, those who are now making purchases more and more infrequently, and more besides.
All this customer insight can enable your marketing team to do the following:
Make email marketing truly personalized
Tempt your customers to return to check out items in their basket or remind them of their unused loyalty balance with a personalized email. These are just two ways you can engage with your customers on a personal level, even with fully automated email marketing. You can nurture your relationships with new, existing and lapsed customers with emails that you know, based on their previous behavior, that they are likely to respond to.
Put online ads in the right places
Because you are connected in all the right ways, you can automate your online marketing to more efficiently target existing and potential customers. Because you have insight into your own customer’s online behavior, you can better identify the most lucrative marketing opportunities.
Automate the process by simply plugging your customer data hub into online advertising platforms.
Optimize content for accurate, efficient marketing campaigns
When you can make smaller campaigns because you know you are targeting the right people, you are maximizing efficiency. And because you know exactly who you are talking to, you can optimize your content to suit. For example, knowing your typical high-value customer as you do, you can now create lookalikes to feature in your social ads.
No more blanket campaigns. Combine a high conversion rate with a lower spend for optimal profitability.
The way forward
A customer data platform is far more than mere data storage. It collects data and organizes it to be incredibly useful. It provides all the insights you need into customer behavior and gives your business the ability to form better, more meaningful connections with people. Not only this, but many marketing processes can be automated for better return on investment. High conversion rates follow from the very targeted marketing a CDP enables.
Perhaps you can now see that your business is not collecting enough of or the right kinds of customer information. Perhaps you recognize that the business is not benefitting from data collection as much as it could be. Perhaps you are not getting the insights that could make a significant difference in your marketing campaigns. If so, an AI-powered CDP would be a very worthwhile investment to stay competitive.
Salam Saadeh is Co-Founder of UrbanBuz, a Customer Journey Management Platform that enables businesses to connect, unify, and unlock their customer data to optimize their customer engagement and marketing budget, while delivering personalized connected customer experiences at scale.