Customer Data Platforms help brands maximize the effectiveness of their marketing initiatives by enhancing customer communication, boosting retention rates, and creating the ideal conditions for increased sales and repeat business.
It’s crucial to centralize the data to ensure the company complies with regulations and can offer personalized offers to various customers. Unified customer profiles are the answer to this problem.
Using the resources of the company’s IT team or an external provider, businesses can create unified customer profiles that are centrally stored, but this is difficult and resource-intensive to maintain. However, they can implement a Customer Data Platform (CDP) solution, which enables them to centrally store customer data from numerous sources and develop more efficient, personalized omnichannel campaigns that increase retention.
In the new privacy landscape, tools like Customer Data Platforms that allow businesses to create robust customer records will be crucial. The good news is that having a unified customer profile also helps with many other marketing-related tasks, such as accelerating marketing tests through data centralization, automating repetitive tasks to cut costs, and increasing revenue through tailored offers.
Also Read: Effective Data-Driven Marketing with Customer Data Platforms
Multi-Channel Communication
When all of the information about a person is combined into one easily searchable data set, it can be utilized to set up accurate targeting across channels. To improve retention and minimize spam, factors including website segmentation, personalization, and a consistent user experience all play a role.
Brands can determine the best time to make a personalized offer, when to avoid doing so, and whether or not to exclude a customer from campaigns by having access to a customer’s entire history of interactions.
Highly Personalized Offers
Making highly personalized offers based on the combined offline and online behavior of a customer is possible with a Customer Data Platform.
For instance, a customer may conduct an online product search. They discover it at the online store and exchange emails for contact, but they decide to buy the item from one of the physical stores instead. It is hard for the online branch of the company to be aware of the customer’s offline transactions without a unified customer profile. This wastes marketing funds by sending irrelevant retargeting ads and promo codes because the customer has already made the purchase. If the customer recovery communication chain results in discounts being offered to them immediately after they have already purchased the item in person and paid full price, they might even become upset.
Marketers can leverage a Customer Data Platform to monitor consumer interactions and the data at their disposal to determine how and when to offer promotions, preventing loss of customer loyalty due to spam communication and budget loss because of irrelevant discounts.
Also Read: The State of Customer Data Platform in 2021 and Beyond
Reduce Churn and Increase Conversion Rates
Customers are inundated with push notifications, emails, and promotional texts. It is preferable to deploy a Customer Data Platform to combine all communication channels into a single system rather than allocating more resources in order to make the business heard over the competition.
This simple change can substantially increase campaign effectiveness. Additionally, it enables more customized communications to be sent through the preferred communication channels of a customer, lowering spam levels and improving customer satisfaction. Such strategies can significantly lower the number of unsubscribes a business gets.
Enhance Marketing by Centralizing Customer Data
Businesses must establish a transparent strategy for how they store customer data in order to comply with new state laws. Also, Google intends to move forward with its deprecation of third-party cookies. Companies must centralize customer data and ensure they gather more reliable identifiers like phone numbers and email addresses in light of these impending restrictions.
These are not merely ways to assist businesses in placating regulators; instead, a central repository for customer data opens up an endless array of new marketing opportunities. Brands can assess the effectiveness of their marketing and introduce omnichannel workflows that include the interests of their customers with a CDP, which can act as a single source of truth. Additionally, the ability to create more tailored recommendations in campaigns and their website will be made possible by knowing the brand’s history with each consumer and their online and offline purchasing habits.
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