Although CDP has become a global phenomenon, various independent studies are bringing forward the challenges businesses face in building a single view of their customers.
This new study by Forrester Consulting, yet again confirms it.
The November 2019 study, “Getting Customer Data Management Right,” which includes insights from over 350 marketing and advertising professionals in North America and Europe, unifying disparate customer data is still a struggle with most companies who are building a single view of the customer.
Firms with a unified view of the customer produce better business results.
As an enterprise is dependent on its customers, not understanding them well has a direct impact on business. Traditionally, customer personas have proved powerful for marketing activities. Marketers today have an opportunity to improve even more on their organizations’ customer data practices.
According to this study, only 11% of firms effectively use a wide variety of data types in a unified customer profile;
these same leading firms are 2.5 times more likely to increase customer lifetime values as a result of unified data management.
Customer engagement data is critical to achieving superior customer experience. The study clearly states the change customer engagement personalization can bring. Companies have witnessed a
–69% increase in the prospect engagement rates with relevant personalized targeting
- -Close to 70% increase in customer conversion rates
- -56% reduction in operational cost with personalization
However, companies are struggling with building a solid foundation to execute the same.
A Customer Data Platform, aka CDP, serves as precisely this solid foundation for successful personalized customer engagement initiatives. It helps build a consolidated single view of each customer live, which in turn enables businesses to keep abreast of individual customer behavior and aggregate patterns over time. Without CDPs, building a customer profile from all the disparate data sources is a cost and time-consuming activity with the need for complex system integration and data integration challenges.
For enterprises to remain competitive in this digital age, it is important to focus on creating personalized experiences using a methodical process built on a solid foundation in the form of a CDP that builds and manages unified customer profiles. What’s more, it is necessary to enrich profiles with actionable intelligence. After all, collecting data just for the sake of it doesn’t really cut it. Whereas, it is important to understand how each data point contributes to a deeper understanding of how the brand can serve customer needs.