Most eCommerce stores are no stranger to the concept of customer data platforms and their significance. CDP or customer data platform is a unified database containing all relevant data relating to your customer base. These platforms are a dedicated solution that enables vendors to leverage customer insight to understand their behavior and make a business decision. A customer data platform standardizes and centralizes all the available information and creates accurate customer profiles in real-time for better B2C interactions.
Having a CDP can make all the difference for an online business. To put it simply, it means that those who have it stay competitive, while those who overlook it simply lose their market share. The insights from a data platform are beneficial to all relevant departments and throughout the hierarchy of your business. Knowing insights about your customers enables you to better modify your products, market them effectively, and create a long-lasting relationship with the customers.
What can a CDP Mean for Your Online Business?
Having a customer data platform empowers a business to leverage data to optimize all fields of the business. Having relevant data regarding your user base can help marketing, sales, customer service, management, tech, and all other departments alike. Simply collect your data across the platform, and put it to good use to perform analysis to better your business. Customer data platform enables you to:
- Capture your data across multiple platforms and use it anywhere.
- Track individual events or activities to characterize patterns and behaviors.
- Explore the database and train models for personalization.
- Create unified profiles of customers or create individual entities.
- Share data across applications with easy integrations.
- Monitor customer dashboard to find valuable insights.
- Turn data into actionable activities to grow your business.
Customer data platforms enable the business to view the holistic picture, this means viewing first, second and third-party data altogether. Making it easier to map out patterns, trends, and anomalies in data sets. Businesses no longer have to struggle to find relevant data, they get to pick and choose with a CDP. By filtering out the data to get specific insights about a particular duration, a business can engage customers more effectively.
A Plethora Of Benefits Of CDP
The true value of a CDP can be measured with each successful data-driven decision the business has made. The benefits a CDP has to offer are only limited by the extent of its use, it can be used consistently and across departments to utilize its true potential. Here are a few benefits of a customer data platform:
Organized Customer Data Management
CDPs make managing customer insights incredibly easy and effective, and present data in a variety of manners depending upon the query type. The platform itself requires little to no maintenance, and can be effectively used under a data governance strategy, a data tracking plan, and can be paired with any project management tool for enhanced reporting. Different departments can easily extract data that is relevant to them and can receive real-time updates with respect to the specified query.
Get a 360 Degree View of Your Customer
While it is common practice to revisit the customer journey, the product feedback, and focus group testing –viewing everything holistically takes it to another level. By collaborating and integrating across the platform, with a CDP, you can get a 360-degree view of your customers and their behavior. This means you will not only know who your customers are and how they find you, you can create their profile, but also map out their buying behavior, and preferences.
Find Unique Audience Segments
After getting a holistic view of your audience, you can easily segment your customer based on commonalities. There are multiple features you can use to group-specific customer segments as well as differentiating features to find new audience segments. By finding a new audience, your business can create custom offerings to tap that particular niche and use it to cement a new revenue stream.
Cost Savings for Your Business
A customer data platform enables businesses to make smarter decisions, which usually translates into lower costs for the business in the long term. Additionally, the centralized view of the data also reduces the costs of maintaining different software for different purposes as CDP offers a one fit all solution. Your business can also leverage the insights to cut down on troubled areas of the business to save additional costs, and avail opportunities to increase revenue.
Be Better Prepared for Long-term Learning
By understanding your customers periodically, your business can build a life-long connection built on customer loyalty and familiarity. Similarly, a CDP can help in strengthening your position in the market and give your business pointers on how to survive and thrive in the future. Having all your data in one place also makes it easier to comply with security and privacy guidelines, making it easier to manage your business in the digital world.