Digital advertising costs are skyrocketing. You've increased your ad budget to attract new customers, but you're left wondering why these potential buyers aren't completing their purchases. At the same time, your e-commerce site's member data and offline orders are stored in different systems, and without a data analyst to help integrate these information, you're stuck with a bunch of member and order data that you don't know how to analyze. To make matters worse, the cost of acquiring new customers is rising, and your churn rate is not getting any better... If these challenges sound familiar, it's time to spend just 5 minutes learning how a Customer Data Platform (CDP) can help your brand overcome these marketing obstacles.
A common challenge brands face today is fragmented customer data, with customer details and order information scattered across various platforms. Consolidating data from CRM systems, e-commerce platforms, offline orders, and LINE into a cohesive view is a time-consuming task that tests the analytical skills of marketing teams. A Customer Data Platform (CDP) effectively resolves this issue by seamlessly integrating online EC orders, offline POS orders (O-Data, or Operational Data), and website behavior, along with data from various marketing platforms (X-Data, or Experience Data). This creates a unified, powerful, real-time customer database.
While integrating member data is a significant primary step, the core of customer management lies in segmentation. Identifying general customers versus those who contribute the most to your brand's revenue is crucial. High lifetime value customers typically exhibit high loyalty, frequent purchases, and higher average order values than the average. These are the customers with the highest Customer Lifetime Value (CLTV). A CDP's strength lies not only in data integration but also in its ability to effortlessly identify your high-value customers by analyzing purchase frequency, timing, and amount. This saves you from the tedious task of manually downloading and comparing order data from various platforms each month and allows for precise reanalysis of your brand's CLTV.
A CDP's powerful capabilities go beyond data analysis; it can also help brands enhance Customer Lifetime Value (CLTV). Typically, increasing CLTV involves boosting the frequency and value of customer purchases. However, this doesn't mean brands should spend heavily on broad marketing campaigns or frequently send mass marketing messages to existing customers. Instead, the focus should be on personalizing customer journeys that ensure natural interactions between the brand and the customer, creating more shopping scenarios and opportunities for them to make purchases. A CDP can analyze customer behavior on your website and their usage habits across different channels to design personalized customer journeys. This personalization enhances repeat purchase rates and boosts CLTV.
In addition to increasing repeat purchase rates, cross-selling and value-added services are effective ways to increase CLTV. By analyzing customers' historical purchase behavior, a CDP can help create automated cross-selling customer journeys. It can recommend the most relevant products at the optimal time, increasing the variety of products customers purchase.
Is your brand ready to implement a CDP? To ensure the best results post-implementation, evaluate your readiness across these three key areas:
In the market, you often hear about brands using Customer Relationship Management (CRM) systems and Data Management Platforms (DMPs). The emergence of Customer Data Platforms (CDPs) is not meant to replace these data platforms but to complement them by addressing gaps in customer data analysis and enhancing marketing automation capabilities.
As third-party cookies are set to be phased out by 2024, the importance of CDPs has become more pronounced, particularly in markets like Europe and the U.S., where customer data privacy is highly valued. While Taiwan is still in the growth stage of CDP adoption, there has been a rapid increase in brand inquiries and adoption rates over the past two years. This trend suggests that the use of first-party data, combined with third-party data, will significantly expand in the near future. The information in this article may not apply universally to CDP strategies across all industries. It is recommended to consult directly with CDP service providers to understand how a CDP can be customized to address specific marketing challenges in your industry. If you are interested in learning more about OmniSegment, feel free to click on the Contact Us button to get in touch with our team for personalized assistance.