Exploring the benefits of CDP technology

A CDP, or customer data platform, is software that organizes your customer data across various touchpoints.

But what problems does a CDP solve?

This post covers everything you need to know about the benefits of CDPs. We’ll go through six compelling pros and explain how you can implement a CDP into your work processes.

1. It eliminates data silos

A data silo is any piece of information controlled by one group or department within your business that nobody else has access to. Employees have to hunt for crucial information, which negatively impacts productivity. This is why data silos cost your team over 350 hours per year.

This time spent looking for information could be put towards something important like improving the customer experience, updating your product or service, and optimizing marketing channels.

Fortunately, implementing a CDP into your work processes eliminates data silos immediately because all information is under one roof and accessible to all. This sets you apart from competitors because you now have an extra 350 hours per year to out-develop them.

2. Unified cross-channel marketing becomes simple

You probably have various campaigns running at the same time. This could be:

• Email marketing
• Google Ads
• SEO
• Content marketing
• SMS marketing

But without a CDP, the pieces of knowledge you collect using these various channels aren’t connected.

So, for example, imagine you’re running an eCommerce store and the survey on your website reports that a particular customer isn’t a big fan of dress shoes. If you don’t have a CDP, you won’t be able to communicate this data across platforms. Your email marketing campaigns might still promote a 20% sale on dress shoes to this customer, leading to less brand engagement.

This affects your entire marketing campaign and can turn customers away.

Fortunately, CDPs allow you to gather all customer data. This way, it’s easy to use the information collected from surveys or website analytics to build marketing campaigns.

3. You understand your customers better

With CDPs, you gain a better insight into your customers since you can develop concise customer profiles. These profiles keep you and your team updated on customer behaviors.

So if you start noticing a trend, you can immediately optimize your marketing strategy to take advantage of it instead of relying on third-party data.

CDPs also allow you to discover customer segments you didn’t know existed. Before, you might’ve marketed products to three or four specific audience segments. But because all customer data is on one interface, you’ll be able to split customers into age, gender, and location.

You could even go further and identify segments like:

• Loyal customers
• Budget shoppers
• Online buyers

This makes personalizing the customer experience simple. For example, suppose you notice a few customers only buy from your shop when you’re running a special. In that case, you could use email marketing to promote more discounts to this segment.

4. Abiding by data privacy laws is straightforward

Data privacy laws are stricter than ever as governments give customers more control over their data.

Under many laws like the GDPR and CCPA, if a customer wants you to delete all the data you have on them, you’ll need to do it within a specific period. Failure to do so can result in hefty fines—many companies have received fines of over $100 million.

But if your data isn’t organized, deleting a customer’s information is almost impossible. This is where CDPs can help. They enable you to meet these regulatory requirements and have peace of mind.

5. You can optimize marketing campaigns

CDPs give you a deeper insight into your marketing performance. Your marketing team can see which campaigns are working and which aren’t. And the best part is they have all the necessary data to fix it at their fingertips.

So let’s say you find a specific campaign is costing too much money because the keywords you’re bidding on are expensive. Your marketers could work on finding cheaper keywords that still have similar traffic. This saves money and allows you to continue improving new campaigns.

6. You’ll increase your profits

All these CDP benefits lead to an end goal: more profit. Whether it’s eliminating data silos or improving current marketing campaigns, CDPs save your company far more money than its monthly subscription cost.

With all the data coming in from your customers across multiple sources like surveys, website analytics, and transaction records, you need a place to store it. Storing critical data in a CDP gives your entire team access to it. And if some information is sensitive, simply make it accessible to a select few.

This increased profit doesn’t just come from improving marketing and lowering costs; it also results from more available time. Your team will have 350 hours of extra time per year, allowing you to out-work and out-strategize the competition.

Experience all the benefits of composable CDPs with Lytics

CDPs are a must-have for every business managing large amounts of customer data. It gives you better insight into customer behaviors while boosting profit.

If you’re looking for an advanced yet easy-to-use CDP, look no further than Lytics. Signing your entire team up and importing customer data takes a few minutes, and then you can start experiencing all these benefits. Sign up for a free Lytics trial today.