1- You send all campaigns to each of your customers with the same subject and the content
Companies often have pre-defined and manually managed segments. With a CDP, it is possible to define segments for each individual customer based on their behavior and reveal new segments dynamically.
CDP allows reaching customers at a time when they are ready to engage. It helps you to optimize strategies for reaching customers at the right time with a message that’s likely to lead to conversion.
Having customer understanding in place and automatically and consistently driving content in all channels at scale is one of the fundamental capabilities of a CDP.
2- Personalization only means putting the customer’s name on messages
One of the primary reasons a CDP is so useful is that you can make sense of the huge volume of customer data so you can engage with them on a more personal (and valuable) level.
Creating hyper-personalized communication makes your customers feel more valued and delivers tailored interactions with your brand that builds repeat business and advocacy.
3- Struggle to predict your customers’ next action
A CDP centralizes customer data from all sources and then makes this data available to other systems for marketing campaigns, customer service, decision making, and all customer experience initiatives. It gives you a 360-degree view of your customers, and this view can include conversion information, behavioral information such as browser interaction data, and geographic or psychographic data. You get an accurate picture of your customer base and how they behave, so you can accurately communicate with them and predict their behavior based on past interactions.
4- Campaign ROIs are decreasing, and you are losing customers
A CDP collects, filters, and organizes customer data, making it easier to automate processes in your marketing activity, such as loyalty programs, discounts, rewards, or renewal campaigns. CDP will help you learn which of your customers represent the highest conversion value and allow you to target them with special offers, early access sales, or discount codes, for example.
It’s between five and 25 times more expensive to attract a new customer than it is to keep an existing one. Nurturing customer relationships through hyper-personalized communications will allow you to build long-term relationships with your existing customers and increase their lifetime value.
You cannot manage what you cannot measure! With all your data neatly collated in one place and the right set of marketing tools at your disposal, you will have an incredibly effective analytics tool to measure conversion rates on your marketing activities. Measuring the effectiveness of your activities in real-time will allow you to adopt a ‘test and learn’ approach without spending your marketing budget on ineffective campaigns.
5- Omnichannel is just simultaneous use of your channels
Since a CDP holds all your data in one place, you can use your CDP data across all of your marketing channels to create a seamless customer experience and effective marketing campaigns that increase your reach exponentially over single-channel marketing.
Implementing a CDP is not a one-time project. Each time you use data to optimize the customer journey, new data will arise from that engagement. Analyzing that data will enable you to further improve your segments, recommendations, and other data-driven initiatives.