After almost 10 years in the market, customer data platforms (CDPs) are now a common investment for organizations. CDPs provide many benefits for organizations, including enhanced reporting, improved marketing efficiency and a better understanding of the customer journey.
CDPs also improve an organization's ability to segment audiences and provide personalized solutions.This is especially important in a time when customer experience (CX) can make or break an organization’s ability to keep customers. More than half (59%) of American consumers will abandon a brand they love after a few bad experiences, according to PwC. In this way, CDPs help organizations impress customers and keep satisfaction high. For example, one company that recently adopted a CDP saw over $100 million in increased revenue and a 38% reduction in cost of acquisition.
The value a CDP can create does not have to stop here. CDPs have advanced in recent years, and they can go beyond these outcomes to foster even bigger organizational transformation. As marketing teams become more mature in their use of CDPs, they can expect even more capabilities than previously expected. After all, a CDP isn’t a simple tool; it’s a comprehensive, long-term investment with the potential to foster a unified data culture that drives value across the business. Below are some of the ways your CDP can help your organization achieve even greater results.
Inside The Deeper Benefits of CDPs
CDPs can now help organizations explore new use cases that go beyond marketing. A recent Treasure Data report, “The CDP Value Chain,” found that the most popular future use cases for CDPs include predictive modeling, achieving operational efficiency and developing direct-to-consumer (DTC) relationships with customers. These results tell us that many early adopters of CDPs have found advanced ways to build upon the foundation their CDP has provided.
Improved operational efficiency is a significant outcome. There are many separate ways in which CDPs contribute to operational efficiency. For example, they allow marketing teams to use data for campaign activities with less reliance on data and IT teams. With low-code/no-code capabilities, the marketing team can do what it needs to do with minimal assistance, while IT can avoid being overworked and focus on projects that require their expertise.
Another way CDPs contribute to operational efficiency is that they allow companies to collect, organize and use their own first-party data, giving them autonomy as they seek data to inform new projects, products and decisions, without relying on agencies or third-party partners.
AI in CDPs
The report also predicted that as organizations become more mature with their use of CDPs, artificial intelligence (AI) and machine learning capabilities will become more critical. Machine learning technology allows marketing and operations teams to be more agile in their approach to data management and get more advanced insights from data.
With AI capabilities, marketers are able to get the most value out of their data and make decisions that could not be made by basic analytic capabilities alone. This is a great benefit at a time when marketers are facing a pressing need to reduce data waste and fully utilize the data they have access to.
Future CDP Use Cases
Marketing is not the only department that can benefit from CDPs. IT, sales, customer support, supply chain, logistics and more are increasingly seeing the value of connected customer data. The right CDP will have the ability to offer flexible data integrations and collect data from any department. With cross-departmental data in a centralized system, any team can find insights that help inform their decisions – whether it’s for a marketing strategy, a sales pitch or forecasting demand for inventory.
CDPs also have great value in another trend that is greatly impacting the future of companies: new privacy and data collection regulations. As it becomes harder to rely on third-party data for personalization, companies can use CDPs to aggregate, organize and analyze their first-party data. As this shift is happening, companies are adopting CDPs so they can get ahead of the curve, build up their arsenal of first-party data and establish a strong foundation. The more first-party data they’ve collected, the easier it will be in the future to make useful insights based on that data.
Experience the Growing Power of CDPs Today
CDPs help companies establish data security, analyze data and create insights to improve the customer journey. The future of CDPs only sweetens the pot, giving organizations moreopportunity to improve operational efficiency, spread the benefits across departments and better prepare the organization for the future of data security laws. To learn more about these opportunities, check out Treasure Data’s report, “The CDP Value Chain,” in the link below.