Benefits of a Customer Data Platform in 2024

Every business owner needs to accept the fact that we live in a world of modern technology. This means that you need to be ready to add it to your business in different ways. Social media platforms are not the only way of how you can boost your business. Indeed, they will ensure you better reach, but you should not limit your startup on them. Instead, you should get familiar with all the software solutions helpful for your business. One of the programs that we would like to talk about here is the customer data platform.

1. What Is the Customer Data Platform?

Before we start with detail, let’s describe what CDP truly is. We can describe it as a packed software that develops a persistent detailed customer database. Still, this is not the only benefit you can get. The database you get is accessible to other systems as well.

Your target audience gives you many directions. Fortunately for you, this software pulls all the data from different sources. After that, it analyzes it, makes a certain combination, and gives you the final result. The final result comes in the form of a single customer profile.

2. What to Look for In the Customer Data Platform?

Well, as you can see, CDP can bring many benefits to your business. We will talk more about them later. Still, you need to ask certain questions before you start using this amazing tool.

The main priority should be to understand how a CDP suits your overall business. More precisely, you need to once again think about the goals that you want to achieve. Try to understand how this powerful software can help you with that. Do not only focus on long-term goals. Think as well about those that you strive to achieve daily. Answers to these questions will tell you which features a certain Customer Data Platform should have.

Additionally, you should also think about the characteristics of your marketing team. Certain CDPs come with a non-technical user interface. In this case, your marketing team will probably know how to use it without any problem. Yet, the interface might be more complex. In that case, your marketing team will need the support of the IT team.

Finally, your entire tech team must know how to interact with CDP. In this way, you will raise the level of effectiveness of your business.

All these things are equally important and we recommend you put them into consideration. However, the most important thing to think about is the benefits you can get. Many entrepreneurs are not familiar with this part very well. Because of that, let’s analyze together the benefits of a customer data platform.

3. All Important Data Is In One Place

Entrepreneurs hesitate which type of data they should use. As you know, first, second, and third-party data is equally important for your business. However, why would you even hesitate when you can have them all in one place? Combining and handling all the data is usually a tough challenge. This especially counts when data comes from several different sources. In this way, you won’t get the chance to get a clear picture.

Customers and their requirements and expectations are everything to you. Because of that, having offline and online data in one place will help you understand them better.

4. 360-Degree View of All Your Clients

We will continue in the same manner. Following the entire journey of your customers is tough. Fortunately for you, this software gives you a clear picture of the entire process that your customer goes through. More precisely, you will get the opportunity to understand their behavior. This piece of information will give you directions associated with your marketing campaign. You will know which method of advertising is the best one. Despite that, you will also understand where and when is the best time to advertise your products or services.

5. Better Profit

Okay, this may seem like an obvious benefit, but we need to highlight it. As we said, the customer data platform helps you boost the effectiveness of your business. The reward will come in a better profit. First of all, you will know exactly who your target audience is and which needs and concerns they have. Sending the right message will help you sell more products. In this way, you will ensure a better profit.

Yet, this is not the only way of how you can increase revenue. Sooner or later, you will become a recognizable brand among a certain target audience. In this way, the price of your products will also jump. However, do not expect something like this is going to happen immediately. Customer Data Platform is powerful, but it isn’t magical. You need to be patient and the success will come.

6. Money-Saving

Imagine how much time and effort you will need to invest to place all data in one place. In some cases, you will need to hire different teams to collect useful pieces of information. As we said, all the data is persistent in the customer data management platform. In this way, you will avoid additional expenses. Despite that, gathering and cleansing of the data truly can be time-consuming. The central view will reduce the time of both processes.

7. Discovering New Segments of Audience

This benefit is the one that allows you to become a recognizable brand. Indeed, this tool does not do this type of segmentation. However, it can help you a lot to find certain segments of your audience. For instance, some of these segments/categories are discount shoppers, loyal customers, etc. After you get this info, you will easily divide your marketing plan into several different categories. All these groups have different needs that you need to meet. You can do that by developing a certain type of message for each group.

Are There Any Good Customer Data Platforms?

Yes, there is a huge number of them that will meet your requirements. For instance, Rudderstack is the best place to start from. You can see which services this type of software offers. More precisely, everything we talked about you will get the chance to see there.