What are the Common Features of Customer Data Platform (CDP)?
Customer Data Platform (CDP) has been a very popular topic these days and it’s easy to see why – using CDP helps businesses manage their data, identify trends, and improve user experience. CDP helps enterprises collect data from multiple sources, process it in real-time, leverage it to create customer insights, and deliver new personalized experiences via every channel customers use to engage with the business.
But all CDPs are not equal, so it’s important to know what factors matter most when evaluating CDP solutions.
5 Most Common Features of Customer Data Platform
1) Advanced Analytics: A common use case for CDPs is advanced analytics. This is an important consideration, especially if you want to use your data for better marketing strategies. Advanced analytics encompasses several strategies, including machine learning and predictive analysis. CDPs can help you do all of these things because they are designed to manage large volumes of data in real-time. They also have algorithms that allow them to crunch through massive amounts of information faster than a human could ever dream of doing. The ability to mine such huge amounts of data allows users to learn more about their customers and predict future buying trends or purchasing patterns.
2) Intelligent Automation: CDPs generally integrate with your CRM and add intelligence to them. They help with automating sales and marketing efforts like sales outreach, lead generation, and campaign management.
Automation is a key feature of CDP because it helps you save time and energy in your business processes. As compared to traditional CRMs, CDPs offer more than just contact management and email integration: these platforms automate tasks such as data tagging, tracking leads through each stage of the pipeline, sending emails at scheduled intervals or after specific events, analytics & reporting, etc.
The purpose is to give you an overall view of customer behavior so that you can effectively devise business strategies for engaging with your customers. This means automating different steps in your selling process, including setting triggers for outgoing emails, managing emails based on selected criteria, etc.
Another aspect related to automation is platform consolidation; meaning that one single interface integrates various functions under one roof. A good example would be visual dashboards that allow following up on every aspect of your business performance all together at once rather than opening multiple individual tools separately.
3) Consumer Personalization: With these advancements in technology, customer data platforms are also able to identify consumer preferences. They can observe their behavior, collect information about their social media usage and search history. CDPs are able to determine how consumers are engaging with their product on a more personal level.
With insights on how users are using your product, you can then modify your marketing strategy accordingly to boost conversion rates and enhance customer loyalty. More conversions mean more revenue for your business. This is why it’s important to have an effective CDP in place that can deliver highly personalized experiences across channels.
It enables businesses to understand consumer behavior while maintaining consistency with brand messaging across all touchpoints through real-time updating of user-profiles on various devices. That way, brands aren’t sending out conflicting messages to their customers since it has consistent content regardless of what channel they use.
4) Omni-Channel Capabilities: When deciding on a CDP, look for one that offers omnichannel capabilities. This means your data is accessible to you across all your channels in real-time. You can gain quick insight into how customers are engaging with you across every channel, which will enable you to make better business decisions moving forward. With all your customer data stored centrally, it’s also easier to get answers when questions arise about what certain groups are doing differently or why an individual customer might be more loyal than another. An omnichannel solution gives you instant insights and helps build trust with your customers.
Understanding these types of connections between different channels makes it easier to create personalized experiences across each medium, ensuring they’ll continue coming back for more.
5) Secure Transactions: A customer data platform ensures that your transaction is secure by encrypting every bit of information. These transactions are based on tokenization that involves encoding sensitive information into a single-use or non-guessable code known as a token.
This allows you to identify customers without revealing their personal details to anyone other than those who are absolutely necessary to carry out essential tasks such as financial transfer and fraud prevention. This also makes it possible for you to detect, prevent and mitigate frauds before they occur without slowing down any business processes.
For example, if someone tries to create an account with an invalid credit card number that has already been used in another account then the system will give an error message.
Customers are no longer an external entity that businesses are simply dependent on for revenue. Instead, they are an extension of your business itself. They are your most important assets, without which there would be no business. And yet, historically, most organizations have treated their customers as unconnected data silos spread across teams and departments.
But with customer data platforms (CDPs), you can transform your company into a single cohesive team working to serve its customers better than anyone else can. Moreover, these were some common features of a customer data platform.
So it’s time now to incorporate them into your current marketing strategies in order to generate real ROI! Muse Digital explains more about how CDP fits into modern marketing operations in future posts. Until then, happy integrating!