Why having a CDP is Key to Your Digital Marketing Stack
Customer data is critical to how we engage with people worldwide. The pandemic put customer data platforms (CDPs) front and center of every marketing team's technology stack and is key to all business in any industry.
As the majority of customer interactions become more and more digital, this includes online shopping, virtual meetings, education, or healthcare; having a CDP will be part of the very foundation of almost all revenue streams.
We all know that third-party cookies are living on borrowed time. As the restrictions on data collection and privacy tighten for third-party providers, CDPs have become central in the search to make customer engagement more personal while respecting individuals' rights to privacy.
CDPs offer explosive growth for digital advertising; consumer businesses are adopting customer data platforms more rapidly than ever because they bridge the gap between collecting customer data and marketing personalized content to their target audience.
In 2017, only 10% of companies were deploying a CDP. However, recent reports say that in 2021, 24% were deploying one. (CDP Institute User Survey).
The ROI is significant.
Marketing teams investing in a CDP say that it paid itself off within six months, and 4 out of 5 users achieved
positive ROI within the 12 months. When asked what the top benefits of using a CDP are,
88% said a unified customer view, 54% said analytics, and having the ability to unify customer data across multiple sources and platforms was 49%.
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There was a significant rise in data processing in 2021, and with that comes the increase in storage, bandwidth, and better, more comprehensive reporting and analytic capabilities. Interestingly, despite budget cuts to marketing teams, and the growing concerns around data privacy, digital advertising is expected to grow by over 30% by the end of 2022.
Marketers want to know how their advertising dollars perform and gain insights into their customers' buying patterns for continued enhancement of the customer journey with personalized workflows and content.
Did you know that in 2021, Google made $8.00 in profits per $1.00 spent on ads? They most likely reported that 100% of every sale started and ended with a Google ad (even if the customer first saw your ad on Facebook). Using a CDP like LayerFive lets you understand your customer's intent by revealing your customer's path to you. So you can clearly see what channel or ad assisted with every sale on your site and accurately attribute the credit back to the right source.
CDP = Single source of truth
Using a CDP, your brand can get a single source of truth about customers and create customer profiles from the data collected from all the different data sources, online or offline.
CDPs can support teams across the board in real-time. Your team can Create automated segments, design the most exceptional customer experiences, improve data management, and stay current with customer privacy policies.
With LayerFive, you get accurate and high-quality data that fuels growth. You can enhance the customer journey, improve customer satisfaction, and drive personalization with custom offers. Contact layer five today to learn more about how your organization can benefit from using a customer data platform.
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