Earlier this week on Modern Marketing Today, we discussed how customer data platforms are improving data value for retailers. Read on to learn more about how retailers can use transformational platforms to improve the customer experience.
Data unlocks the potential for retailers to better meet their customers’ needs. By using data as a resource, retailers are able to tailor their customer experience and provide personalized messaging. But in order for retailers to capture value from data, they must overcome one of the biggest challenges of today’s data-rich environments and ensure that the data is organized. Customer data platforms (CDP) allow retailers to create a centralized environment that collects and manages data assets and, in doing so, they are able to increase the insight and understanding of their customers.
As retailers prepare for a post-pandemic world, the CDP Institute reported continued growth in the industry, where the importance of data and digital experience will continue to accelerate. Now, retailers want to move beyond solely capturing data to using it to create value. The inherent value of CDPs is the ability to predict what customers might want to see or do next and prompt decisioning based on these behaviors. The goal is to engage customers across every digital channel at the right time with the right message.
To simplify, the core capabilities of a CDP are data management, smart applications, and orchestration. CDPs help break down data silos and organize customer data so that retailers can make greater connections. By gaining deeper insight into customers, retailers can deliver a more relevant, personalized experience. Smart applications leverage data to predict, test, and optimize every customer interaction with the brand. CDPs enable smarter exchanges across digital channels with tools such as predictive analytics, decisioning technology, and real-time experimentation. Additionally, a central platform allows organizations to orchestrate these connections across their brand. This ensures that the right messaging reaches the right customers at the right time and place, creating the ultimate omnichannel experience.
In a post-pandemic world, data management is necessary to handle the increase of data from hybrid work environments. CDPs can help retailers adapt to focus on their digital experience and grow their customer capabilities. These platforms will drive value from customer data and deliver results that impact the customer experience.
To learn more about customer data platforms, click here.