CDP Benefits (CDP Best Practices)
November 6, 2024Customer Data Platform benefits are many and varied. Welcome to the fifth and final post in our series on industry leaders’ best practices for CDP value. The topic today is CDP Benefits.
CDPs Handle Complex Data Sources. CDPs specialize in managing complex data across systems. “The ability to handle complex, multi-integrations simultaneously is the key differentiator between a “run of the mill” software and a Customer Data Platform. By ingesting data from your various source systems (i.e. PMS, Booking, POS, eCommerce, and more) users gain a deeper understanding of who your customers are, what they want and how to market to them,” says Lindsay Hansen, Marketing Manager, Ascent360.
Unified Profiles Drive Broad Range of Outcomes. The unified customer profiles built by a CDP can drive impact throughout the enterprise. “[We see] customers build comprehensive profiles from enterprise-wide sources including to drive broad business outcomes with fast time to value. These rich profiles or dynamic segments are used in real time to enhance customer experience and other operational or analytical use cases that improve efficiency and reduce risk,” explains Venki Subramanian, SVP, Product Management, Reltio.
First-Party Data Is Foundation of Customer Data Strategy. CDPs can help enterprises plan how to use customer data. “[We see enterprises] focusing on building a complete customer data strategy: Building a strategy based on a foundation of first-party data, while also working with trusted second and third-party data partners to maximize insight, scale, and reach,” says Josée Healey, Senior Product Marketing Manager, Adobe Real-Time CDP.
Customer Analytics in a CDP. A Customer Data Platform can help you understand your customers. “Leading enterprises are maximizing business value using CDPs to improve customer analytics practice. CDPs customer profiles, including identity resolution and audiences, are used throughout the whole organization, updating CRM KPIs, enterprise DWH information to have customer dimensions included in business intelligence, and customer data lakes for data science modeling,” says Andrea Bedeschi, Executive Advisor, BitBang.
CDPs Replace DMPs. Customer Data Platforms are able to replace older software. “We have seen a lot of enterprises achieve good savings and increase efficiency by using their CDP as a first party data replacement for their legacy DMPs. We have seen enterprises that adopt this strategy double their click through rates and reduce their cost per click by 65%,” notes Damian Williams, CTO, n3 Hub Ltd.
CDP Empowers Marketers. Marketers benefit from using CDPs. “A CDP can empower marketers with real-time easy access to customer data that is real-time and self-serve — marketers can analyze and segment without dependencies on other teams. Ultimately, marketers are more agile and better understand customers’ needs. This easy access directly impacts value acceleration by allowing faster execution of campaigns,” observes Rony Vexelman, VP of Marketing, Optimove.
Real Time Extends from Data Collection through Engagement. A CDP can work in real time across the data life cycle. “Leverage real-time data collection and enrichment to deliver personalized and timely customer experiences in the moments that customers engage with your brand, instead of after the fact. This can significantly enhance customer engagement and satisfaction,” observes Matt Parisi, Director of Product Marketing, Tealium.
CDPs Help Optimize Customer Experience. A Customer Data Platform helps companies to improve customer experience. “Leading Enterprises are using CDPs to optimize omnichannel customer experiences. In [the] retail and fashion industr[ies], CDPs can share customer profiles selected information (such as ecommerce PDP views) with in-store sales representatives, to optimize the selling ceremony through clienteling apps and, in reverse, to be more consistent in drive-to-store call-to-actions for retail-only customers,” says Andrea Bedeschi, Executive Advisor, BitBang.
We hope you got a lot of insight from the experts on CDP benefits. Also, see our other CDP Best Practices posts on these topics:
Thank you to our participants!
