In today’s digital marketplace, customer data platforms continue to grow in importance for several reasons. Primarily it is because customer data platforms are crucial in helping a business understand their customers, build relationships with current and potential customers, and ultimately drive more revenue to a business.
Companies currently using a customer data platform understand how much better their data management is and how much more they can deliver a personalized experience to their audience. Companies that are still wondering what is a customer data platform risk getting left behind in terms of engaging in a meaningful way with their customers. With that in mind, here are some great reasons to begin using a customer data platform.
They Help To Build a Unified Customer Profile
One of the fundamental aspects of marketing in the digital age is for companies to create a target customer persona. With so many different customers contacting companies through so many different avenues, it can often seem difficult for a company to create this type of blended persona.
One of the true strengths of a customer data platform is that it acts as a central hub for every piece of customer data that a company receives. So no matter if companies launch campaigns through email, social media, or organic search, the customer data platform allows them to gather every piece of information in one place.
When companies go through this process, they better understand every customer’s journey from their first contact with the company until the sale of a product or service to the customer. This information allows companies to tailor their marketing strategies in a much more direct and effective way that lowers costs and increases revenue.
They Can Deliver a Very Personalized Experience
As companies receive more data about each one of their customers, they have the opportunity to provide relevant and personalized campaigns to customers. Companies soon learn that this type of personalization is precisely what customers expect and demand from companies. When customers receive a personalized experience from a company trying to sell them something, they are far more likely to engage with that company in a meaningful way.
They Can Improve Customer Satisfaction With Your Products and Services
One of the benefits of using a customer data platform is that the targeted approach it offers directly correlates to a huge increase in customer satisfaction. This change leads to first-time customers becoming repeat customers and creates tremendous viral buzz among customers singing your company’s praises.
When this happens, companies soon see considerable increases in their annual growth. At the same time, they may quickly see their marketing budgets decline because their targeted efforts are much more cost-effective.
They Offer Automation That Saves a Company Time and Money
While the core of a customer data platform is data accumulation, it also offers the ability to utilize artificial intelligence and automation in the execution of the software. For example, a customer data platform might be able to use a shopper’s purchasing history to guess when and how much they will buy in the future.
With this kind of information in hand, companies can approach customers at the right time with just the right message. This process means that the marketing dollars spent by a company get used in a way where conversion rates are much higher, thus lowering a company’s expenditures.
They Might Be Able To Predict the Future
It is not an overstatement to suggest that a customer data platform can give companies a glimpse into the future. A customer data platform can give a company great insight into future marketing trends that will allow that company to target high-quality audiences both now and in the future. This information will allow companies to say one step ahead of their competition even while data keeps getting accumulated by the system.
While a customer data platform is not a substitute for a great marketing team at your company, it serves as an invaluable tool in assisting them in their efforts. This unique piece of software can both increase revenue and decrease expenses at precisely the same time.