Marketers who utilise Customer Data Platforms (CDPs) believe it is as essential as CRMs and DMPs when it comes to getting value out of their customer data. A Customer Data Platform is a software that aggregates and organises customer data across a variety of touchpoints and is used by other software, systems, and marketing efforts. CDPs collect and structure real-time data into individual, centralised customer profiles. Business’ who utilise this platform will see an increase in productivity and efficiency.
The benefits of CDP
A recent study fielded by Advertiser Perceptions for Treasure Data provides myriad insights on how marketers are using Customer Data Platforms. They found that 58% of surveyed marketers believed that CDP is essential for getting value out of customer data, especially first-party data, as it is becoming the new currency. As discussed in our previous blog post, businesses’ are concentrating more on first-party data, and CDP can assist them. It has also driven the most significant improvements for organising and acting on this data.
Notable improvements from CDP include: Make customer data accessible to other systems, ingest and integrate data from multiple sources, real-time customer segmentation, customer profile management, customer journey mapping and cross-channel customer journey orchestration.
The study also found that marketers who had used their CDP for more than two years were more likely to be very satisfied. This information indicates that marketers must learn how to use the technology and start recognising the advantage of the solution. It also insinuates that CDPs are not a quick turnaround solution. It is evaluated over long periods and therefore, brands must understand that a time-invest is required alongside commercial investment.
CDP drives efficiency; 3 in 4 survey participants have seen a reduction in time spent managing customer data and reporting. There were improvements in decreasing ad spending waste, freeing IT resources, improving overall marketing effectiveness, reducing staffing costs and more. Companies need to be as efficient as possible, and using CDPs enables marketers to prevent wasting resources and to be productive.
CDPs can enhance how marketers utilise and organise their consumers’ data, with its proven effectiveness and long-term success; it is an excellent software for marketers to adopt. We can support your business in your data collection and activation efforts by offering our data solution or supporting your tech stack and strategic executions.
We can assist in setting up a CDP for your business,
Please enquire with us on enquiries@nextandco.com.au or 1300 191 950