Elevating Customer Experience with Customer Data Platform: A Customer Centric Approach

Is your brand image reaching right to your customers?

How do you know if your customer’s experience was good?

What to use for driving better customer experience?

In this rapidly evolving digital space, businesses are witnessing various challenges associated with delivering better customer experiences. To meet these ever-growing demands of customers, businesses need a customer data platform for customer experience that can help uplifting the business growth.

CDP, a customer data platform that organizations use for customer journey enhancement. Let’s see what CDP is and how it helps in enhancing the customer’s experience.

Info Insights: According to a study by Dimension Data, 81% of companies mark customer experience as their competitive differentiator.

CDP Demystified: A Journey from Data to Insights

The process of Customer Data Platform (CDP)

process of customer data platform

A CDP or Customer Data Platform is a unified database that enables businesses to collect, integrate, and manage customer data from various sources, both online and offline. Its primary purpose is to create a unified and comprehensive customer profile that serves as the single source of truth for all marketing and customer engagement activities.

Nowadays, customers engage with businesses across various touchpoints, and a customer data platform makes it easier to predict customer journeys from a holistic view.

four types of process of customer data platform

CDPs in Action: Elevating the Customer Experience

A consumer data platform delivers personalized experiences, eliminates data silos, and harnesses the potential of artificial intelligence to elevate the customer experience journey. In multiple ways. Such as.

Creating Single Customer View

creating single customer view

A single customer view is built by collecting information from all accessible data sources. A CDP is linked with all incoming data sources, making it easy to consolidate consumer data into a unified profile. Once CDP has access to all the incoming data, it can perform data cleansing and apply data analysis to get actionable insights.

For example, a fashion retailer with multiple channels, including a physical store, e-commerce site, and mobile app can use CDP for customer experience. Using records of customer service interaction, loyalty programs, and social media engagement, it can suggest what its customers want by analyzing their profiles.

Here a CDP will clean incoming data by eliminating redundancies and unifying the customer profile like, purchase preference, size, favorite brands, etc. Once this single customer view is built, a consumer data platform will apply data analytics processes to generate insights.

Here is how the process of building a single customer view takes place inside a CDP.

single customer view building timeline

Delivering Personalized Customer Experiences

The art of crafting exceptional customer experience involves grouping customers intelligently to deliver personal interactions. Almost 66% of buyers expect businesses to understand their specific requirements and expectations according to a salesforce study.

According to Epsilon, almost 80% of the audience stated that they’re more inclined toward businesses that personalized customer experiences. Hence, a reliable CDP builds a comprehensive customer profile by aggregating data from numerous sources.

Let’s say you’re a destination marketing company that is focusing on converting prospective vacationers to book hotels and travel tickets from your platform. A CDP here can segment prospects who checked trains, flights, stay, etc. for a specific time, or event and retarget them with discounted destination deals of their interest.

AI-Driven Hyper Personalized Consumer Experience

Consumer demands today are not getting any lower and to stand out among competing businesses, personalization is not enough. This is where AI and predictive analytics are used in CDPs to predict, test, and optimize customer interactions for hyper-personalization.

70% of millennials are irritated by irrelevant emails according to a SmarterHQ report. Here, a CDP can drive hyper-personalized marketing campaigns by tracking customers’ shopping preferences and purchasing thresholds.

Enhancing Customer Lifetime Value

Acquiring a new customer can cost as much as five times, rather than retaining an existing customer according to the Times of India. Therefore, increasing the lifetime value of your active customers is a necessary part of enhancing your customer’s experience.

Using a CDP for customer experience, businesses can keep a record of active consumers who frequently make purchases and engage with marketing emails. Giving these active customers a specialized discount or gift voucher at the time of purchase gives them a feeling of being cared for and in turn, increases their lifetime value.

Customer Journey Enhancement with CDP

Instead of focusing on a single transaction, a customer journey represents the complete duration of a customer’s engagement with the brand across various touchpoints.

customer journey across every touchpoint

Customer journey orchestration allows companies to plan and determine the best action that will lead to their desired outcome. Here, the use of CDP for customer experience is personalizing the customer journey through timely and relevant content delivery.

For example, if a prospective client attends your product-focus webinars, the AI model will recommend relevant content to the client based on its real-time interactions and interest in the product.

The marketing team can build an omnichannel customer engagement. Improve their Return on Ad spend (ROAS), customer retention, loyalty, and overall customer experience by using a CDP to deliver relevant content.

Enhanced Omnichannel Customer Experience

Businesses today are active across multiple channels and delivering excellent customer experience across every touchpoint is very difficult. However, customer data platforms have unified customer profiles.

So, leveraging that, businesses can segment their audience based on their transactional data and send timely alerts, messages, and automated marketing communications to continue the incomplete customer journey via various engagement channels.

2023 CDP Trends for Better CX

elevating the customer experience with customer data platform

1. Emotional Connections

  • We are naturally addicted to pleasant experiences, which is why we repeat positive behavior and avoid negative ones. According to a 2022 index published by Forrester, the top 5% of companies delivered 15% more emotionally positive customer experiences compared to their competitors. This is feasible as they have an effective Customer Data Platform.
  • One example of that would be Coca-Cola’s “Share a Coke” campaign, where they replaced their brand name on bottles with popular phrases that encouraged customers to share a Coke with someone they knew. This campaign increased their sales by 2% in the US and with over 500,000 social media shares with #ShareACoke.

2. Touchless User Interfaces

  • With the rise in technological breakthroughs, many technologies are now going touchless and screenless to deliver the best possible customer experiences. Customers are beginning to adopt a new form of interaction that requires minimal effort from their side.
  • For example, Mastercard’s Biometric Checkout Program uses biometrics and facial recognition for payments. Instead of using cash or cards, buyers can wave their hand over a machine or simply smile to proceed with payments.

3. Intuitive Digital Experience

  • Customer experience professionals are reimagining what and how customers think while interacting with the company’s digital touchpoints. Providing an intuitive digital experience that is focused on customers’ needs and expectations is what brands are more inclined to do nowadays.
  • Carvana is a prime example, it eliminates interactions with salespeople and allows customers to buy cars from the comfort of their homes and get them delivered or pick them up from a car vending machine. That too with the 7-day no-questions-asked return policy.

Analyzing engagement business websites, consumer sentiments, and churn rate to identify potential frictional touch points and eliminate them is possible by using CDP for customer experience.

Capitalizing on these trends to deliver the best possible customer experiences becomes much easier with the help of a Customer Data Platform. Not only can businesses build long-term customer relationships, but can also provide seamless and personalized interactions at every touchpoint.

Key Takeaways

  • Customer Data Platforms unify data from diverse channels, creating a single customer view that helps businesses make personalized offers and informed decisions.
  • Segment customers intelligently for targeted interactions, leading to better engagement and customer satisfaction.
  • CDPs combined with AI enhance customer engagement through predictive analytics, reducing churn, and delivering hyper-personalized campaigns.
  • Using CDP for customer experience enables businesses to plan and deliver relevant content across the customer journey, improving overall engagement.
  • Emotional connections, touchless interfaces, and intuitive digital experiences are key trends that enhance customer engagement and satisfaction.

The ability to predict, personalize, and orchestrate customer journeys in real-time empowers brands to stand out in the competitive market. By using a CDP for customer experience, businesses can build lasting relationships, foster customer loyalty, and ultimately drive their success to new heights.

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