For a long time, marketers have been struggling with how to find new customers. The problem is that as soon as you generate leads for your company, the customer is not yours anymore. The more people you sign up with, the less likely it is that they will buy from you again because they are now being marketed to by multiple companies.
The best way to get more sales is by taking care of your existing customers. But how do you know what they want? What about your current customers? What if there was a way to make money off of them instead of just getting their loyalty? That’s exactly where data platforms come in and change everything! This post will show you the benefits of Customer Data Platforms and how they can help you nurture your customer relationships for better marketing performance.
How does CDP help?
Customer data platform (CDP) gives you insights into who your customers are and what motivates them to buy from you (or not). You can then use this information to tailor
marketing campaigns specifically towards those individuals – giving them incentives like discounts or promotions designed specially to retain them.
The platform allows you to combine first and third-party data and then
segment and filter it on a customer-by-customer basis. As we all know, first-party data includes contact information that has been collected directly from the customers (through an email sign-up form on your website for example). On the other hand, third-party data includes information such as demographics and general interests. This type of data is commonly found on social media websites such as Facebook and Twitter, but you can also purchase it from third-party providers who specialize in selling this kind of information.
What do they really do?
Customer data platforms not only give you the knowledge needed to target your customers better with marketing campaigns, but they also give you a better insight into what your customers are looking for. This will help you serve them better and eventually increase sales.
Not only that, but it also helps with customer retention by making sure that no potential clients slip through the cracks. For example, if a person has shown interest in your company’s product or services before, they are more likely to be persuaded to buy in the future than someone who has never interacted with you or your business.
As we all know, Customer Success and Retention is the key to an organization’s success. So, it is very important to keep your existing customers happy and make them spend more money with you.
How does it help you?
This will allow you to reduce customer churn and increase your revenue (customers who stay longer generate more revenue). It can also reduce marketing costs as you will be spending less to acquire new customers.
In addition, CDP have the added benefit of being able to increase conversions. Again, if a person is already familiar with your company and products, then they are more likely to make a purchase than someone who isn’t (hence increasing conversions).
According to Forrester Research,
Customer Data Platforms will be an essential element of digital marketing by 2020. So if you’re already trying to use marketing campaigns to bring in more customers, now is the time to also begin using customer data platforms as well. The only way to successfully compete in the ever-changing business world is by using data and analytics, and customer data platforms are a must for companies with a large volume of customers.
Some of the key features which you need to look for in a CDP are:
1. A single view of your customers across all marketing touchpoints.With a
single view of your customers across all of their touchpoints, you’ll be able to see exactly what marketing is driving revenue, and which channels they’re using.
2. Enriching each customer profile with inputs from external sources like CRM, Web Analytics, Purchase History, etc. The more you know about your customers, the better. Data from outside sources can enrich customer profiles with information that will help you to serve them better.
3. Offering greater insight into customer behavior using predictive analytics. By using predictive analytics, you’ll be able to learn more about your customers and what they’re interested in. This can help you provide better services and products for them!
With these features, CDP allows you to analyze your
customers'personas and their buying behaviors. This can help you in targeting them with appropriate messaging which would potentially increase the chances of converting more users into paying customers.
So what is it all about?
A CDP is not all about increasing revenue per customer, it can also help save a lot of money at the same time. You no longer have to pay for a campaign that did not even hit your target audience. CDP will allow you to run effective campaigns at a very low cost by targeting people who are more likely to convert into sales.
There are several other benefits of using a Customer Data Platform, which is why companies are getting increasingly interested in them. In the next few years, its usage is expected to grow massively.
Using a customer data platform in combination with your other marketing tools is by far the best way to get more sales from your existing customers, so what are you waiting for? Get started now!