Customer Data Platforms (CDPs) are becoming increasingly essential for business success. After all, customer experience is the most critical factor distinguishing whether a company will thrive and grow in any industry, and excellent customer experiences are built on data.
Today’s consumers expect every interaction with a business to be convenient, impactful, and tailored to their needs. A customer data platform goes beyond the basics of a standard “Customer Relationship Management” tool to help businesses build comprehensive customer profiles they can use to personalize every interaction.
With these tools, companies can take a unique, data-driven approach to optimize every stage of the customer journey, increasing loyalty, retention, and conversions. Here’s why you should be investing in a CDP to turbocharge your customer experience strategy this year.
1. More Comprehensive, Unified Customer Profiles
CDPs don’t just “store” data about your customers. These tools collect and combine information from countless different environments, unifying it into in-depth customer profiles (or single customer views). That’s crucial when customer journeys are becoming more complex and multifaceted.
Companies can’t rely on analyzing just one or two customer interactions and touchpoints to get a complete view of their target audience anymore. They must bridge the gaps between hundreds of “data footprints” left across numerous applications. CDP solutions wrangle all the data you need to truly understand your customers, their needs, pain points, and even areas of “friction” in their journey.
This leads to the creation of profiles that give you a more comprehensive view of customer behavior, thoughts, feelings, and actions. With a CDP, you can see everything that impacts your customers' experience with your brand, from the point when they first encounter your company to the stage when they renew subscriptions or make additional purchases.
2. Customer Data Platforms Break Down Data Silos
The responsibility to deliver great customer experiences doesn’t lie only with traditional contact center agents anymore. For companies to compete in an experience-driven landscape, they must unify every customer-facing employee with the same data and insights.
Everyone, from traditional agents to “informal contact center employees”, like sales teams and product developers, must be on the same page. Unfortunately, without customer data platforms, it’s easy for data silos to emerge. One team might have information on a customer’s purchasing history, while another knows about their previous issues and support requests.
When all of that data is fragmented, it’s difficult for teams to collaborate on delivering a consistent user experience. Plus, it’s much harder to understand the customer journey fully. CDPs bring teams and data together, enhancing collaboration and customer service decisions.
3. Unlock Valuable Insights for Growth
The only way to deliver the highly personalized experiences 71% of customers say they expect from brands today, is to gather as much data as you can about your audience. Unfortunately, collecting data today is much more complicated than it seems. Google is terminating third-party cookies that marketers previously relied on to understand customer journeys.
Additionally, buyers are becoming more discerning about the type of information they share. Customer Data Platforms help companies to overcome data shortages. They ensure you can collect larger volumes of the data your customers willingly share through different channels and platforms.
This means you can unify more “first-party” data, to adhere to evolving privacy laws, and you can maintain more control over that data too (which improves the accuracy of your insights). On top of that, you can use the data you collect to develop more in-depth insights. For instance, many CDP solutions allow companies to use their historical data for “predictive analytics” tasks, allowing them to predict changes in behavior, buyer trends, and preferences in advance.
4. Customer Data Platforms Improve CX
The biggest benefit of investing in customer data platforms is that they actively improve the customer experience. Your customers want to feel like you truly understand them and are ready to put their needs first and deliver a consistent experience across every channel.