The year 2020 was eventful, and the speed of transition is unlikely to slow in 2021. The leading companies this year will embrace change and strive to improve their agility. A Customer Data Platform is one of the instruments that can assist businesses in reacting quickly to market changes and capitalizing on emerging developments.
Marketers were forced to react to near-constant change by the events of 2020. As the pandemic forced a rapid transition to digital channels, years of digital transformation were compressed into a few months. Customers demanded more from brands and held them to higher levels of trust and security in the face of widespread uncertainty.
New privacy laws, such as the California Privacy Rights Act (CPRA), have been enacted, contributing to the complexities of digital marketing. At the same time, the loss of third-party cookies rendered the most straightforward mechanism for attribution of ad spend and resolving user identity across devices and domains obsolete.
Organizations must be able to adapt quickly in order to respond to these developments. They’re doing that by improving how they organize and use customer data, allowing them to quickly pivot strategies when necessary. So, let’s take a look at three aspects in which these platforms can assist organizations in dealing with these changes.
Customer Data Platform Can Facilitate Agility
The pressure on businesses to provide cohesive, omnichannel experiences was already building. Now, as consumer dynamics shift, businesses must be ready to adapt those interactions almost instantly. Companies can attain this agility by using their Customer Data Platform.
CDPs with AI and ML capabilities, in particular, can assist companies in acting on key trends more quickly, in part by improving marketing efficiency. Companies can also use AI and machine learning to recognize consumers who are unlikely to convert and remove them from campaigns, to enable focused resources and time for customers who are more valuable. Organizations must look for a CDP that has AI/ML capabilities to help them achieve their specific marketing goals and react to change quickly and effectively.
CDPs can be Used for More Than Just Marketing
The importance of consumer data to all groups within an enterprise was demonstrated by the rapid changes of 2020. Customer behavior and expectations are just as important for CX, IT, and other departments as they are for marketing. Increased CDP adoption could result in more accountability and agility within the organization.
To satisfy the needs of these diverse groups, CDPs should be extremely flexible. Organizations should look for a CDP that can quickly integrate with their third-party solutions. This will make it easier to integrate with outdated systems and will help them get the most out of the current data across departments.
Another essential requirement is user-friendliness. CDPs with even advanced features like AI and machine learning should be simple to understand and use. Organizations should invest in a Customer Data Platform only if they are sure the line-of-business workers outside of IT will be able to use it.
Customer Data Platform will Facilitate Better
With data privacy issues on the rise and third-party cookies on the decline, businesses will increasingly depend on first-party data strategies, which mainly rely on user data collected with the consent of consumers. In the future there may be a trend toward a value exchange between brands and consumers, in which customers willingly provide personal data in exchange for benefits and privacy.
Finally, by assisting marketers in understanding consumers’ desires and needs, this customer-permissioned flow of knowledge could increase relevancy. Customer Data Platform with real-time connectivity would be ideally suited to offer personalized services on the customer’s terms and to assist in connecting with consumers when it matters most.