“Without big data analytics, companies are blind and deaf, wandering out onto the Web like deer on a freeway.” – Geoffrey Moore
Despite the sheer volume of customer data that is created every day, businesses often struggle to understand their data, and how to use it to drive their marketing campaigns. Marketers may have access to CRM systems, loyalty program information, clienteling apps, and other systems that collect data, but what are they supposed to do with all of these disparate data sources? We often hear that when data is spread out across different technology systems and teams, it can feel more like clutter than an asset.
This exact use-case is compelling marketers to find a new way to manage their customer data. A customer data platform (CDP) transforms customer data and stores it in a way that is easy for marketers to query and explore, without having to use SQL or any advanced tech skills. By removing this barrier, marketers can take over the reins to better understand their customers’ buying habits and behaviors. Here is just a sample of the questions that marketers should be asking, and the insights that CDPs can unveil for them.
What impact does my catalog have on revenue?
If you send out a catalog to 500K people and after the in-home date, you see a spike in sales, can you tie that back to the catalog? Despite being one of the most enduring marketing channels, marketers in a digital world often struggle to measure its value. With a CDP, a customer’s entire buyer journey, including their catalog experience, can become easily visible. Perhaps it might look something like this:
- Clicked on an ad through social media
- Visited your website multiple times
- Received additional email campaigns
- Visited your website additional times
- Received an in-home catalog
- Completed a purchase
By understanding this consumer’s buyer journey, you know that while the digital campaign elements most likely influenced the purchase, the consumer’s driver to purchase was the in-home catalog. Armed with this information you are able to target them effectively moving forward, and feel confident that you’re getting a positive ROI on your catalog.
Which new customers are most likely to have high LTV?
As we approach the holiday season, retailers are gearing up for an influx of new purchasers, but should everyone by treated equally when it comes to the marketing materials they receive? What if someone is just buying a gift and is clearly outside of your key demographic? Or what about the group of customers who just make a small, low-value purchase? A CDP that incorporates machine learning and AI is able to take all of this behavioral and demographic data to create smart customer segments that not only predict which specific customers are most likely to have a high LTV (as defined by you!) but also provides recommendations on how to drive the most value out of them.
How do I minimize cart abandonment?
Every retailer knows the frustration of cart abandonment. The customer was SO close to purchasing! What went wrong? A CDP helps marketers use their data to understand the best way to reach customers who abandon their cart as well as how to re-engage them to complete the purchase journey.
With a central database that pulls together a consumer’s purchase and touch history, buying journey, and demographics, you can begin to understand the trends around what has been most successful in re-engaging customers in the past. It could be a coupon code, or maybe just a reminder email – your data has the answer, a CDP just helps you find it.
The value of a CDP
The real value of a CDP is the opportunity that it gives marketers to gain actionable insights from customer data. When you’re able to answer important and pressing business questions, these insights can have a measurable impact on revenue. Once you understand your data, it is easier to decide on segmentation through the appropriate channels to target your audience via effective messaging and timing. And with the buzz of digital marketing continuing to grow, you don’t want to be additional noise in a crowded marketplace.
This blog was written and contributed by Stefanie Sparrow an Engagement Manager at QuickPivot.