Data drives today’s greatest digital experiences, but simply having millions of customer data points means nothing if you can’t activate it. Thankfully, a customer data platform (CDP) is helping businesses spin that data into golden customer insights. The CDP space is growing stronger every year with $1.8 billion in venture capital investments in CDPs in 2019, according to Gartner research. If you’ve been considering purchasing a CDP, now may be the time to make the leap.
This series features helpful passages from our e-book, Transforming Customer Data into Insights: A Chief Marketing Officer’s Guide to CDPs, to help educate marketing leaders on how to effectively use customer data to elevate their marketing efforts and connect with their audience.
Chances are that in the last twelve months, you’ve purchased an order online and picked it up at the store. Perhaps you even opted for curbside delivery. The convenience and speed of digital commerce cannot be matched. These past few years alone, consumers are opting to shop online more than ever.
Financial services firm Cowen estimated that 25% of US consumers will have tried curbside pickup by 2020, now a $30-35 billion annual market. Of course, the COVID-19 pandemic played a large part in such a massive shift. But it may be accurate to label this and related trends not so much a shift, but an acceleration in customer expectations for engaging with brands.
Brands today must initiate and sustain meaningful relationships with consumers, catering to their unique behaviors and interests across a variety of channels. Traditionally, marketing data and marketing strategies have existed in silos within individual channels. Store or call center representatives aren’t able to tailor their customer interactions based on email marketing segments.
To provide a consistent customer experience, organizations must be able to integrate and act on this variety of data. Research consultancy McKinsey reports that brands that leverage customer behavioral insights outperform peers by 85 percent in sales growth and more than 25 percent in gross margin. Siloed and unintegrated data and marketing stand in the way of providing the right messages and offers to customers at the right time.
Only when accurate data is available to everyone in the organization can you say that you’re making data-driven decisions. And the savviest businesses are turning to a customer data platform (CDP) to serve as their company’s single source of truth. A CDP provides a 360-degree view of each customer, allowing employees from across business units to get a clear picture of their purchase history, preferences and brand interactions.
In the next installments of the "A CMO’s Guide to CDPs" series, we will explore the challenges today’s marketing leaders face when trying to provide data-driven, personalized experiences. We’ll reveal how technology solutions, particularly CDPs, can transform the way businesses see their customers and, in turn, improve revenue, customer loyalty and the holistic customer experience.
Stick around for part two or get the full e-book, A Chief Marketing Officer’s Guide to CDPs, right now.