Is 2023 Really the Year of the CDP?
Is 2023 Really the Year of the CDP?
Marketers are hungry for powerful data that helps them better understand their customers.
A CDP can be a game-changer, delivering a unified spectrum of customer information that puts marketers in the driver’s seat. More and more companies are relying on this key benefit. The worldwide customer data platform software market will grow at 19.5% CAGR from $1.3 billion in 2020 to $3.2 billion in 2025. Companies are realizing that customer data platforms offer an unmatched marketing advantage.
Activating data for marketing purposes
The true omnichannel marketing that marketers have long dreamed about was not possible until fairly recently. It takes a staggering amount of data to orchestrate a cohesive customer experience across multiple channels. Ingesting the data is one thing, but activating it as a business driver makes it powerful. To do so requires engineering expertise to produce a quality 360-degree view of the customer.
While CRMs used to have this capability, their function has naturally evolved into a more sales- and service-oriented suite of tools. CRMs can’t deliver the holistic customer data needed to enable multichannel engagement. Instead, it takes marketing savvy and IT expertise in equal measure to arrive at an effective CDP solution.
All of the customer data in one tidy package
From a business perspective, the creation of the CDP has at last empowered marketers with data adapted to their objectives. Qualified information collected from various sources is virtually stitched together to create a singular, unified customer profile. This strong profile enables customer engagement and provides insight on how to segment, analyze, and develop further marketing strategies.
From a technical perspective, CDPs are founded on a schema on read architecture, and the data ingested can be activated with an omnichannel approach. Whether you’re considering a standalone (ActionIQ) or in-suite (Adobe Experience Platform or Salesforce) CDP, the value lies in this data activation.
The full array of customer data now available with a CDP has become more than just nice to have. Its value is currently unparalleled in the marketing realm and the word is out. In fact, customer data investments for marketing are projected to skyrocket at a rate of 34% growth per year through 2026.
The orchestrated customer experience
While activating valuable data was once only possible for engineers, now non-technical users — marketers, customer service teams, and social media managers — can easily access the data, too, from a user-friendly interface. But various marketing channels work in different ways, so CDPs are uniquely designed to address the different requirements and feeds for:
- Email marketing
- Website engagement
- Social media marketing
- Mobile app messaging
- CRMs
- Google Ad
Ingested and activated effectively, the data from a CDP enables the right messaging to your customer where they are most likely to engage — automatically. Rest assured, the CDP does not break existing customer experience eco-systems. Instead, it extends them to effectively coordinate omnichannel engagement. Munvo’s experts know just how to trigger this engagement.
Use cases within reach
Munvo helps companies leverage a CDP in multiple ways. Two typical use cases that can occur across many industries (retail, hospitality, finance, telco, media, and more) involve:
- Cross-selling to customers
- Retaining customers
PROBLEM:
Some companies are dedicated to using email to reach their customers. However, this kind of customer communication is not as engaging as it could be. Sometimes email works, but companies that saturate this channel might be missing out on:
- Cross-selling opportunities:
Current customers are a likely segment to make further purchases or transactions unrelated to their initial business. But unless certain data about this customer is activated with channels besides email, that potential could remain untapped. - Retention opportunities:
A customer who makes one purchase or transaction and isn’t tracked with follow-up contact could “disappear.” If this customer opts out of email distribution, there is no further possibility of communication with them.
SOLUTION:
Email marketing is a great tool — if it is not siloed. Used in concert with other communication channels, email is fertile ground for marketers. A customer’s response to email messaging, or lack thereof, is useful data.
Customer data ingested and analyzed by a CDP reveals when and if email is a useful channel. It also tells how and where to reach a customer, setting up customer journeys based on activated data.
Deploying the array of relevant channels that the customer is already using, e.g., website, social, in-app, paid media, etc., is more likely to extend the buying journey than email alone.
Steps for success
If you are thinking of adding a CDP to your marketing stack, Munvo’s experts can provide complete and independent advisory services to your marketing, IT, and analytics teams. We believe in this technology — we’ve seen firsthand the fruits of the CDP with dozens of clients. When implemented properly and deliberately, its marketing benefits are almost countless, driving business more efficiently than ever before.
You likely have many worthwhile questions about choosing a platform that meets your evolving needs. Munvo has the experience needed in selecting the right fit for your company. Along with providing an agile–iterative approach, Munvo’s experts can assist in all phases of CDP implementation in 2023. From discovery and integration to training, we are your reliable partner.
If you’re ready to investigate the value of a CDP for your business in 2023, book a free consultation.
