The plethora of digital data available to marketing organizations used to overwhelm companies, now it represents opportunity. “This presents organizations with an opportunity to rethink the technologies and methods used in marketing and sales. One solution to strengthen the infrastructure to capture and better utilize first-party data is a customer data platform (CDP),” says a Evalueserve’s Global Head of Data and Analytics, Swapnil Srivastava in a recent Forbes article.
Managing customer data can be challenging, and many businesses struggle to turn it into valuable insights. That’s where CDPs come in handy. A CDP helps companies mine key insights from their customer data and deliver better experiences to their customers.
In this article, we will explore the importance of CDPs and provide practical tips for maximizing their value and ROI.
Customer data Platforms: What are they and Why are They Important?
CDPs collect and manage customer data from multiple sources, such as websites, mobile apps, and social media. They use that data to create a unified personal profile to deliver more personalized experiences to customers. By having a comprehensive understanding of their customers, companies make better decisions and create more effective marketing campaigns.
We all know how important managing customer data is to mine key insights. CDPs help companies identify patterns and trends in customer behavior that would be difficult to detect otherwise. This leads to increased revenue and customer loyalty. When considering whether to buy or build a CDP, it’s important to make ROI a primary determinant.
“Instead of asking, ‘What’s the cheaper option?’ I encourage you to ask, ‘What generates better business value?'” suggests Srivastava.
Mining Key Insights and Delivering Business values
CDPs deliver more personalized experiences to customers. By collecting data from multiple sources, they build a comprehensive profile of each customer, including their preferences, interests, and behavior. Companies use this information to tailor their marketing campaigns, product recommendations, and customer service interactions to each customer’s specific needs.
However, using CDPs to improve customer experience can present challenges, such as privacy concerns and data security. Ensure your enterprise data governance policies are compliant with privacy laws and has robust security measures in place to protect customer data.
Common Factors to Consider When Implementing a Customer Data Platform
When implementing a CDP, there are several key questions to consider:
- Is it plugged into existing insights systems for timely decision-making?
- Is it integrated with analytics processes for key customer insights?
- What is the total cost of ownership, including implementation, maintenance, and support?
- What is the potential impact on customer experience and ROI?
It’s also important to factor in the potential privacy risks associated with collecting and managing customer data.
As Swapnil Srivastava warns, “The important question to ask here is: Are you willing to take up the risks associated with the rapidly emerging consumer data privacy regulations and their legal implications?”
With privacy regulations becoming increasingly strict, companies need to select CDPs that are compliant and protect customer data. It’s important to prioritize data privacy and security to maintain customer trust and avoid legal and financial repercussions.
Consider whether to buy or build a CDP. Building a CDP can be costly and time-consuming, but it allows for more customization and control. On the other hand, buying a CDP can be faster and more cost-effective, but may not meet all of your specific needs.
By selecting the right CDP for your organization and implementing it effectively, you can create competitive advantage and deliver a superior customer experience.
Wrapping Up
Selecting the right CDP for your organization can be a challenging but rewarding endeavor. Consider the potential impact on customer experience and ROI, as well as the total cost of ownership, to make an informed decision and maximize the value of your investment. Whether you choose to buy or build a CDP, focus on generating better business value and delivering a superior customer experience.
“There isn’t one right answer, but there is a right one for your company or team,” concludes Srivastava.
– Originally Published on LinkedIn
eBook
The Ultimate Guide to Business Intelligence Transformation
How Global Enterprises stay ahead of the competition
