It is no secret that for a business to succeed, it must first get to know its customers.
Since a company cannot always interact directly, it can only gather information based on customer actions.
Personalized ads, product listings, and messages can be created using all data, making the shopping experience more relevant for the customers.
But how do businesses achieve this? By using a customer data platform.
What is a customer data platform?
A customer data platform is a type of software that gathers data from multiple sources and combines them to form one giant database of your customers.
It helps you know more about your customers, what they want, and how they behave. Using all gathered information, you can create personalized campaigns and experiences tailored to your customers.
Benefits of a customer data platform
Listed below are some of the benefits a customer data platform offers:
Comprehensive view of customer
By utilizing a customer data platform, businesses can learn more about the people buying their products or services.
Customers are no longer reduced to simple numbers or names on a screen. You learn more about their stories and interests, making it easier to deliver tailored experiences.
Customer data platforms allow marketing teams to optimize their marketing strategies, as they have more useful information on their customers.
A personalized marketing campaign leads to higher conversion rates and return on investment.
Enhanced customer experience
If all customers receive the same experiences, they will likely be unsatisfied with your brand’s service, which could result in them choosing your competitors over you.
This is why creating experiences specifically catered to each customer is the best approach to ensure their satisfaction.
Customers are likelier to stick with a brand that knows what can make them happy, so gathering important data through a customer data platform is crucial.
Data democratization means making data accessible to everyone in the organization.
By allowing all departments to work freely with your customers’ data, they also have the necessary information to help create personalized campaigns.
Data privacy and compliance
Centralized data allows organizations to remain in compliance with data privacy regulations.
Customer data platforms enforce strict security measures that keep customer information safe and ensure it is handled legally and ethically.
How does a customer data platform work?
A customer data platform creates personalized campaigns in 4 steps:
Customer data collection
You need to collect the necessary data needed to form a unified customer database. All sets of information can come from multiple sources, such as past purchases, emails, and transaction records.
All this information may not look very unified at first, but that is where data harmonization comes in.
Data harmonization is where you take all the information you have gathered and piece them together to form a singular, unified view of the customer.
Once you see the bigger picture of who your customers are, it will be easier to create experiences that are personal to them.
Now that you have a clearer idea of who your customers are, you can start tailoring personalized shopping experiences to them.
Since each person behaves differently, each one will have a different customer journey, which is ultimately better as each individual’s feed is relevant to them only.
Creating data insights
Now that your customer data platform has created a unified view of your customers, you can find common points between them and segment them into similar groups.
These common points allow you to create insights that you can use to track the customers’ journey, making it easier for future campaigns.
Choosing the best customer data platform
There are many different customer data platforms you can use, but only one will work the best for your company.
Here are some things to consider before choosing your ideal software.
- Data integration – Since this is what you will be using the software for the most, ensure its data integration capabilities are efficient and can provide in-depth results.
- Scalability – An ideal software allows you to scale up or down, depending on the volume of data you are working with.
- Security and compliance – Take time to review the software’s adherence to security measures and privacy regulations to keep your customers’ data safe.
- Ease of use – You want a software that is intuitive and allows you to work quickly.
Unlock possibilities with a customer data platform
A customer data platform allows you to get to know your customers on a deeper level.
By learning more about their interests, actions, and activities, it is a lot easier to create experiences that are meaningful to them.
Connecting with customers on an emotional level becomes a lot simpler, ultimately increasing retention and loyalty.