Knowing your existing and prospective customers has always been important. This knowledge allows businesses to make a connection and provide the right products and services that meet specific needs, deliver solutions and promote customer engagement.
Having customers’ details provides opportunities. Whether that be index cards and folders stacked in filing cabinets (pre-tech) or in Customer Relationship Management (CRM) systems, having customer data is one of the foundational keys to success.
As we progress through the second decade of the 21st century the notion of 'information is the new currency' has never carried as much weight as it does today.
There are millions of web pages competing for business. Millions of customers want instant information and results. With that comes a lot of customer data. When combined with other systems that information can be used to do great things.
What is a Customer Data Platform?
With customers becoming increasingly demanding it's vital to serve, synchronise and optimise their needs at every touchpoint and on every device.
A Customer Data Platform essentially centralises and aggregates your customer data from all sources. Customer information is collected, structured and optimised (in real-time) into customer profiles that are accessible to other systems. These profiles can then be used to target your audience for various initiatives like marketing campaigns, global announcements and the like.
A CDP builds a single customer view and a behavioural picture of all website visitors based on:
- Behaviour: Actions taken on a website, app, live chat and other channels
- Transactions: Transactional data records what was purchased, cart abandonment and returns etc.
- Demographics: Name, address, DOB etc.
For Medium to Large Business not having a CDP could be the difference between success and failure.
We can strip down the functions of a CDP even further by looking at the purposes they serve. First and foremost a CDP 'de-silos' data. By collecting masses of data and storing it in one place, internal systems become more streamlined.
With the elimination of silos, marketers have a centralised view of customer data. They have that all essential 'single source of truth' they can base their marketing efforts on.
Secondly, with privacy and GDPR compliance at the forefront, managing customer data properly is part and parcel of today's business practices.
By storing and controlling data flows between various marketing systems, CDPs can manage customer privacy and first-party data. This enables marketers to use unified customer profiles to communicate to their audiences through various channels such as marketing automation. This saves a lot of time and allows marketers to get communications out to their audiences quicker.
The importance of Customer Data Platforms shouldn’t be underestimated. Managing and segmenting data allows marketers to deliver a streamlined customer experience across all touchpoints.
Like all CDPs, Sitecore’s Customer Data Platform, which is part of the Composable DXP, creates a unified source of customer intelligence for your digital ecosystem, improving insights and segmentation for effective targeting.
If your business uses Sitecore, or it's on your radar for a future transformation project get in touch. We have a fully certified development team who have been trained in delivering Sitecore CDP.