Last year consumers showed support for the sudden increase in the number of businesses transitioning to digital platforms. And, by the end of this year, the number of global digital buyers will hit over 2.14 billion—almost double the international tally in 2016. In the US, over 88% of the adult population shopped online in 2020 alone. Just this first quarter of 2021, the U.S. Census Bureau estimated e-commerce sales totaled $215 billion.
Knowing this, it’s crucial for businesses to optimize their massive consumer data traffic. Enter a Customer Data Platform (CDP), which can accurately arrange, translate, and clean-up said data from various customer touchpoints. However, although the role of data in business resurgence is critical, not all companies have applied a CDP. Whether due to budget constraints or unfamiliarity with the technology, here is a comprehensive list of benefits to turn any skeptic into a believer:
Prevents data silos with real-time centralizations
Considering that work models are now largely online, having data silos can cause more significant, costly, and time-consuming delays. This means your organization is prone to more miscommunications, client-servicing errors, and less inter-departmental collaboration. But with a CDP, data is automatically centralized. This democratization of data means accurate and timely information can be easily obtained with less hurdles and manpower. To further this point, 53% of marketing executives even believe that the data transparency provided by CDPs enables their teams to react quicker to consumer and market demands. This is particularly important in the time of a crisis or when dealing with any complaints, where a quick response is crucial.
Empowers marketing and customer experience initiatives
Because CDPs are able to derive a precise profile of your customers, consumer-centric initiatives can be better targeted. Take the job of a business analyst as an example. The tasks of this business administration career are informed by CDP-derived data in order to properly advise teams in marketing, sales, and customer service. This is important given the rapid pivots needed to keep up with consumer preferences, so business analytics roles must be guided by the right insights derived from consumer data in order to retain said consumers. Research from PwC even states that 32% of consumers will leave a brand after a single negative experience. This is versus the 86% who said they’d pay more for exceptional customer experience (CX).
Supports a unified omnichannel approach
Accessibility and efficiency are two factors that are driving more consumers online. In fact, the Future of Commerce report describes omnichannel commerce as the new norm. This makes even more sense considering Google reports that 98% of Americans switch between multiple gadgets a day. More platforms mean more reach and insights. But it’s only with a CDP that you can correctly collate this new data into one integrated study that is then shared company-wide. This ensures that all your omnichannel messaging and efforts are connected and accurate. In the long run, businesses with omnichannel strategies can see a 91% higher year-over-year consumer retain rate.
Helps business comply with CCPA demands
As data continues to be a big game, consumers are understandably becoming more discerning with their information. This led to the California Consumers Protection Act, 2018 (CCPA), which enhanced privacy rights for California residents. With a CDP, businesses can safely engage with customer needs without infringing on their rights. Because the CCPA extends customers the right to access, delete, and edit their data, a CDP helps streamline this process. This limits the need for extra human intervention or work hours just to comply. For instance, if a customer requests to be “forgotten”, a CDP provider can help businesses comply by seamlessly implementing this request and updating the entire consumer database.
The ability of a CDP to paint a vivid portrait of a company’s target market is a key advantage in a competitive digital market. By harnessing the power of data, a CDP-backed business can expect to see better internal performances and increased external loyalties, too.
Author: Belle Meyer