To truly harness the power of personalization, you need a Customer Data Platform.
Without it, it’s simply not possible to service hundreds of thousands or even millions or customers on a 1:1 level based on their specific, unique interests, behavior, purchase history, customer service history, etc.
But once you understand that technology is the backbone of personalization at scale, the question becomes: How do CDPs support personalization—and do they all support it or just some of them?
In our recently relaunched personalization guide, we tackle this question. Here’s a peek at what we had to say.
All CDPs are about knowing your customers
The core function of any CDP is to collect and unify customer data. Even the most basic CDP on the market should be able to unify data from your CRM, website, email marketing platform, etc. and make it accessible to your team.
But for some CDPs, that’s it. Your data is unified and accessible, but you’ll still rely on your teams to interpret and use that data for any marketing purposes. The heavy lifting will still fall on the shoulders of your marketing team.
Which is why if personalization is your goal, we recommend a more robust CDP…
Some CDPs enable personalization based on behavioral data
For true personalization, it’s not enough to know who your customers are. You need the information to be actionable. You need to feed it into Facebook and Google and your other tools. You need to be able to identify and segment customers based on their behaviors and interests.
This is where good segmentation and suppression come in. They enable you to segment customers based on things like whether they abandoned a shopping cart or how engaged they are with your brand or if they already bought Product X (and thus you don’t want to waste your dollars advertising it to them again). And once you’ve identified those customers, a good CDP should let you target them or keep them off your list of targets (as in the case of the customer who already purchased).
These tools are a foundational start to personalization. They let you identify and target the right groups for your campaigns.
But for true 1:1 personalization, even segmentation isn’t quite enough. You’ll need a CDP with machine learning and AI capabilities. A CDP, in other words, that takes some of the burden off your marketing team and automates the ability to treat customers as individuals based on what we know about them.
Best-in-breed CDPs use machine learning and AI to truly personalize
When Netflix shows you movies or TV shows they think you’ll like, that personalization is a lot more complex than simply categorizing you into a customer journey. They’re not only serving you shows they think you’ll like based on your watching history, but they’re actually changing the art you see based on the kinds of things you normally click on.
Love Angelina Jolie? Chances are you’ll see more cover art featuring her. Respond well to action? You’ll see depictions of said action.
When explaining this feature, the company wrote: “This is yet another way Netflix differs from traditional media offerings: we don’t have one product but over a 100 million different products with one for each of our members with personalized recommendations and personalized visuals.”
This is what we mean when we talk about 1:1 personalization. And it’s only possible because of AI and machine learning technology.
Shopping for a CDP? Look for one with machine learning and AI.
If personalization is the goal (and it should be), only a robust CDP with machine learning and AI capabilities will do. Don’t settle for anything less.
Need help figuring out how to evaluate CDPs? Check out our CDP buyers’ guide.
Want to learn more about personalization? Download our free guide.
Or, if you’re ready for a demo, schedule one today. We’d love to show you how Lytics enables true 1:1 personalization.