The customer data platform (CDP) buzzword is still going strong. Everyone, it seems, is jumping on the bandwagon in an effort to better engage with and acquire new customers. But the timing is funny because shouldn’t companies already be doing this?
Here at SessionM, we love hearing about companies working to improve customers’ digital experiences, but we’d be remiss not to talk about the giant elephant in the room that should be at the core of any customer data strategy: loyalty.
We’ve been talking about the value data provides organizations for a while and are working with a myriad of brands to provide their customers with an optimized experience that is relevant and consistent across all channels. However, the key enabler is data…which fuels interactions, which fuels engagement and ultimately loyalty.
Don’t be fooled. CDPs are not new, it’s just the shiny object turning heads because companies are [finally!] discovering how to [finally!] use customer data to deliver experiences consumers have come to expect.
Companies used to rely solely on their customers’ intent and product considerations, with little need for conversations or interactions. Now, however, productively using customer data allows a company to determine what a customer is most interested in, and to create a personalized experience where content, products and/or services are presented before they even realize their needs.
For a company, the value of customer data can be about optimum marketing results, with more precise targeting and more focused money spent. This gives them the ability to acquire the right customers, provide them with excellent service and products, and be more focused on which customers to retain, at what cost. The value of customer data is beneficial for both the customer and the service provider as they truly begin to operationalize insights on customer data and behavior. Operationalizing insights with an eye on driving business outcomes such as a more loyal customers can help businesses realize the ROI of their technology many times over. According to Gartner’s Market Guide for Loyalty Management:
One of the benefits of merging loyalty data and technology with the rest of the marketing stack is the opportunity to know customers, improve one-to-one marketing and personalize experiences. Gartner estimates that, by 2020, smart personalization engines used to recognize customer intent will enable digital business to increase profits by up to 15%.
So, sure, hop on the CDP movement, but buckle up because that is just the first stop. Brands must also recognize that more is needed than a traditional CDP. It is imperative to also implement all-encompassing loyalty programs, the real driving force for increased customer lifetime value, recency, frequency and more.