What are 4 Key Benefits of a Customer Data Platform?

Jan 05, 2022 | Customer Data Platform

By Anders Spicker

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Understanding the benefits of a customer data platform (CDP) can become quite the mind puzzle if you have no idea what to look for.

In a desperate moment, you might think you need to interview stakeholders from every team or become a full-fledged wizard juggling number between spreadsheets to know the outcome of implementing a customer data platform.

You don’t!

What you need is a clear overview of the advantages a CDP provides for your business and your strategic goals. You need to be armed and ready if you are in a position to fight for a CDP and, so here are the top 4 reasons to keep going forward.

So, let’s dive right in.

I think most modern organizations are motivated to work with customer data or will be in the near future. They have to be if they plan on connecting with customers and becoming memorable. Many have already started but in a more simple and static setup, where data quickly expires and the process is too manual to handle long-term

Anders Spicker

Director, Omnichannel Excellence

With a Customer Data Platform…

1. You get data-driven marketing decisions for sky-high performance

Don’t trust your gut when making your next marketing move!

Raptor’s CDP gives you next-level insights into your entire customer base, giving you the facts you need to make high-performing data-driven decisions.

With a CDP, you not only achieve your ROI through better targeting and much-improved sales. You also save operational resources by automating marketing and sales tasks, optimizing media spend, and complying with GDPR requirements.

2. You get a future-proof data strategy

With 3^rd party cookies out of the picture, you miss out on a major source of customer data for your personalized marketing.

Unless you invest in the 1^st party data within your business. By collecting and connecting the many data footprints your customers leave behind, you can deliver the type of personalized communication that not only performs but is preferred by consumers.

3. You get rid of Data Silos and take full control of your data

Let’s be realistic: With every new customer touchpoint developed and activated by your marketing, sales, or IT team, a new silo of data is also created.

Isolated and siloed data can block your efforts towards scaling personalization, and they can harm any attempts you make to understand who your customers are and where they come from.

A CDP gives teams access to leverage customer data across departments – tearing down the data silos that prohibit growth and transparency.

4. You get a 360° overview of your customer base with Single Customer View

A CDP enables you to understand your customers on a 1:1 level. What does that mean exactly? Well, it means you can catch micro-trends, deliver accurate product- and content recommendations, and manage your customers’ journeys – all through insights you get from every single customer.

A CDP develops a single meaningful view of the customers in real-time, whether from their interactions in the physical store or when they visit your website or app.

You can act on the data you get from all channels and customer touchpoints, allowing you to fully manage your customer relationships.

Maybe you also need to read: 3 Questions to ask before you buy a CDP

Do you want to understand your customers in a 2022 perspective?

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Why a Customer Platform is crucial in times of change

With customers’ new and improved ways to interact with your brand on multiple channels, the relationship between you and them is changed fundamentally.

Take live shopping as an example. Here both online and offline channels are used. Products are sold directly through video streaming on platforms such as Facebook, Instagram, or Amazon. The shopping experience combines the best from two worlds: Making the online experience similar to the one we know from physical stores and collecting customer data as part of the online experience.

A customer shifting between digital and physical spaces necessitates a place for you to understand their actions. A place where their data is united, their profiles refined and updated according to recent activities and changes in their lives.

A Customer Data Platform provides this space by developing a single customer view in real-time. You get insights here and now, allowing you to manage campaigns and use them for targeting later on.

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While many benefits of turning to this technology are listed above, you also need to encompass the financial aspect of the CDP investment. According to Gartner, the cost of poor data quality annually amounts to 15 million dollars, which a solution supporting both data collection and activation could help with.

Want to know more?

We answer any questions you might have about the Customer Data Platform and why it matters to consider a future-proof platform for handling customer data.

Contact Anders →