As companies strive to understand and connect with their audiences on a deeper level, the role of a Customer Data Platform (CDP) has emerged as a company’s trailhead in achieving this objective.
At Simplus, we believe a well-chosen CDP facilitates the seamless gathering, analysis, and utilization of customer data. The importance of selecting the right CDP ensures your company is on the right trail as it acts as a bridge for businesses seeking to harness the power of customer information.
In other words, to get the most value from your data-driven automation, your journey must begin with a trusted CDP as your foundation and a team of experts to help you navigate the trail.
Let’s discuss why carefully selecting a CDP is not merely advantageous but essential for businesses aiming to navigate the complexities of the modern market and fortify their customer relationships.
Start with an intelligent trailhead: A 360-degree Customer View. A good CDP consolidates customer data from various sources, providing a comprehensive and unified view of each customer.
Simplus Advisory Services can help businesses roadmap customized data strategies
And data cleansing needs for CDP implementation. Then our expert Implementation team can set up tools to help your business understand customer behavior, preferences, and interactions across touchpoints.
Improved Customer Experiences
Studies show that around 97 percent of consumers and 98 percent of contact center managers say customer service interactions impact whether consumers stay loyal to a brand. The foundation for effective CX is personalization.
“While you may have been hearing about the concept of personalization for a while, it’s more critical than you might think,” said experts at Salesforce Canada, referring to the State of the Connected Customer Report which found that 56 percent of surveyed customers feel companies treat them like a number.
With a robust CDP, businesses can create highly personalized and targeted marketing campaigns. By understanding customer preferences and behaviors, companies can tailor their messages and offers to specific segments, improving the chances of engagement and conversion.
“As consumers spend more time online, a world of choice opens up, freeing them from restrictions of past habit and allowing them to explore new options that might better align with their current priorities, preferences, and lifestyle changes,” they added.
By having a holistic view of customer interactions, companies can provide more relevant and timely communications, anticipate customer needs, and deliver a seamless experience across channels.
Data Quality and Accuracy
Any CRM is only as effective as its data. But with Google’s third-party cookies falling by the wayside, the ability to capture accurate first-party data offers strategic benefits.
“For one, with first-party data, it is easier to adhere to data privacy laws. Increasingly, governments around the world are getting stricter on data privacy,” said Steven Widen, a Forbes Council member and contributor. “It is easier for organizations to manage first-party data—what data gets stored, how it is stored, how it is retrieved, etc. More control also means better data quality. And your marketing ROI depends a lot on the quality of data you have.”
A CDP helps maintain data quality and accuracy by consolidating and cleaning data from various sources. This ensures that businesses make decisions based on reliable information, leading to more effective marketing strategies and operational decisions.
Compliance with data protection regulations is a critical consideration. A reputable CDP helps businesses adhere to data privacy laws by providing tools for consent management and anonymization and ensuring customer data is handled securely.
When it comes to marketing, customers expect their interactions on a company’s website to translate to their mobile app experiences and even in-store visits.
“The problem is that, for most companies, those environments operate off different datasets — even though the customer is the same,” explained Martin Kihn, SVP of Strategy, Salesforce Marketing Cloud, and Jay Wilder, VP of Product Marketing at Salesforce. “Customers also expect their experiences to be consistent, and ‘in the moment’ as they move from channel to channel.”
Kihn and Wilder explained that most customer journeys involve three different channels (for example, e-mail, web, and mobile app), and customers tend to move seamlessly and quickly between these channels.
“Most companies, however, don’t have these data environments connected in real time,” they said.
By streamlining data management and analysis, a CDP improves marketing efficiency. Marketers can save time and resources by accessing a centralized segmentation, targeting, and analytics platform, leading to more effective and efficient marketing campaigns.
Integration with Other Systems
A good CDP integrates seamlessly with other business systems, such as CRM, marketing automation, and analytics tools. This integration allows for a more holistic approach to customer engagement and business operations.
A successful systems integration needs total adoption from your teams. The Simplus OCM team can work with staff works with teams to ensure users are prepared for the CDP change so they can adopt it and start realizing value immediately.
Data-driven Decision Making
Businesses can make more informed and data-driven decisions by accessing a wealth of customer data.
“In order to regain your competitive advantage and hold ground in times of economic downturn, you need to do more. Your marketing, commerce, service, sales, and other teams all need to follow a data-led approach to serving customers,” explained experts with Salesforce EMEA.
A recent study showed that 91.9 percent of organizations achieved measurable value from data and analytics investments in 2023. And 3 in 5 organizations are using data analytics to drive business innovation.
“It requires putting an analytics dashboard shortcut on every desktop and zooming in on customer behavior data in every meeting,” the Salesforce team said. “This real-time data intelligence is your timely, reliable feedback loop about the market as it stands. It informs the next best step for a product or campaign.”
Also, as the business grows, its data needs to evolve. A scalable CDP can adapt to changing data volumes and business requirements, ensuring the platform remains effective and efficient as the company expands. The Simplus Managed Services team is ready to maintain your CDP implementation by conducting regular system checkups and optimizations of the Data Cloud implementation.
In a landscape where data-driven decision-making is paramount, the significance of a company’s CDP extends beyond a mere tool—it becomes a strategic imperative. Businesses that recognize the pivotal role of their CDP in bridging customer insights and operational efficiency are better positioned to understand their audiences and adapt and thrive in the dynamic marketplace.
Simplus understands that the right CDP serves as a linchpin for companies to elevate personalized customer experiences, sustainable growth, and informed decision-making and to ensure the company stays on the right trail. That’s why we recommend Salesforce’s Data Cloud for creating that foundation for CDP success.
As technology continues to evolve and customer expectations rise, the strategic investment in a CDP becomes advantageous and indispensable for businesses aspiring to stay competitive and responsive to the ever-changing landscape of customer dynamics. We can help.