It is important to have control over customer data. Few will disagree. But collecting data is only half the task. For what to do with the collected data, which is now in the company’s many different systems? How to bring customer data into play to create value for the business?
If in doubt, read on here. where we review:
- When you should consider whether you should have it
- How a customer data platform (CDP) works
- How to get maximum value from it
Imagine being able to get customer data from all your digital channels and systems gathered on one customer profile in one system – A single View of the Customer
If your company does business through many different channels and has customer data spread across several different systems, you face the challenge of having to tie these channels, systems and customer profiles together.
Being able to recognize a customer who has visited your webshop from the facebook mobile app one day and the next day makes a purchase online as direct traffic from a laptop, makes it difficult to see the value of marketing activities and identify the customer. But more importantly, a customer data platform allows you to get a comprehensive overview of all the customer’s interactions with your business.
Recognition of the customer across systems requires a link in the form of unique identity markers. It these markers as a customer data platform can analyze and match on the right customer profiles.
Your data insights will be better and your decision basis more data driven with a CDP
When you merge online behavioral data with data from your business systems at the profile level, it provides some unique opportunities to analyze the customer’s deeper commitment to your business. You do not have to stop at the behavior of your online channels.
Customer service, marketing, sales and the cash register staff in the physical stores can greatly benefit from being able to see if the customer belongs to your most important customer segments when they meet them. With some simple analysis models, you can divide your customers into dynamic segments that you can process with targeted messages in your communication.
The analysis assesses 3 simple parameters:
- How recently the customer has bought
- How often they buy in
- How much they buy in for.
The 3 parameters can give you access to the most valuable segments of your customer base and process them when the customer is about to churn or if the purchase frequency has dropped after unsubscribing from the newsletter. Then you can create a segment in your customer data platform and initiate concrete actions aimed at the customer to reactivate the relationship between you.
Is the customer a major consumer of your services or is it a customer who shops around and is easy for the competitor to wring away from your business with a good offer. It is important to know when the customer is on the phone at customer service, when the clerk at the checkout meets them, or when you need to assess whether they should have the next campaign with special offers for loyal customers.
So what is a customer data platform?
A customer data platform is a marketing tool that makes it possible to gather customer data from all your different systems in one place. From your CDP, you can store and merge customer profiles from different channels and touchpoints, build segments, and identify audiences
. It’s basically about making your data usable across your systems. Useful for analytics, campaigns, product development and sales and customer service dialogues. A CDP is a key tool for personalizing messages to your customers. And almost indispensable if you want to personalize your marketing on a large scale and have many customers, markets, products, source systems and channels crossing over.
How a CDP works: Profile Unification
In order to recognize a customer across online channels, offline sources and systems, a link in the form of unique identity markers is needed.
There are generally 3 different types of identity markers.
- Permanent markers as email or phone number. The most basic level of profile pairing.
- Associated markers such as. login from a user account, purchase with customer club card associated with the same email or phone number. The behavior can be matched to a profile and matched.
- Statistical searches of customer data exposed to machine learning, which predicts that two profiles are likely to be the same user. An example: 2 different devices that send traffic to your website from the same IP address at different times, but only one has been logged in.
Although the uncertainty is greatest with the last method, that uncertainty can be released. For example, by logging in from a device that ultimately informs the customer and puts the profiles together or creates the customer with permanent markers. The unknown user is now a known customer.
Companies with active customer clubs have an advantage over linking offline and online interactions to the same customer because they have created an additional identity marker. When an offline customer registers his purchase in the customer club, it will often be possible to recognize the customer when she interacts with the company on the digital channels. The method is called Profile Unification and is one of the strongest features in a customer data platform.
There are currently a number of new technological options emerging that can profiles and behaviors together: tokenization based on the payment card number, face recognition, beacons, wifi location and several others.