[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/09\/20\/customer-data-platform-solution\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2020\/09\/20\/customer-data-platform-solution\/","headline":"How a customer data platform unlocks\u00a0the\u00a0power of\u00a0personalization\u00a0","name":"How a customer data platform unlocks\u00a0the\u00a0power of\u00a0personalization\u00a0","description":"The power of personalization, powered for business: Customer data platform (CDP) solutions help brands build on foundational insights to go beyond marketing\u00a0and\u00a0impact the full customer journey.","datePublished":"2020-09-20","dateModified":"2025-01-30","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/adrian-nash\/#Person","name":"Adrian Nash","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/adrian-nash\/","identifier":457,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/d988e7afbd0d0d72c34cc2dc7fb55a0eac430a461c81d6ad181f8d5335edee3f?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/d988e7afbd0d0d72c34cc2dc7fb55a0eac430a461c81d6ad181f8d5335edee3f?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/09\/customer-data-platform.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/09\/customer-data-platform.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2020\/09\/20\/customer-data-platform-solution\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/b2b\/","name":"B2B Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/B2B_e-commerce"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/cdp-customer-data-platform-general\/","name":"CDP: Customer Data Platform","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},"Customer Data Solutions",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]}],"wordCount":904,"keywords":["Consumer Data Privacy","Data Privacy"],"articleBody":"The last time I visited the\u00a0U.S., my credit card was swiped from my pocket. Upon getting back to London and calling the bank, an excruciating number of hours were spent being transferred between reps and repeating my account number every time a new person came on the line. Many consumers \u2013 like me \u2013 are ready to take action, but when customer service breaks down or isn\u2019t executed in a hyper-personalized way, they can\u2019t.This frustration isn\u2019t limited to the customer service channel. For example, customers may enjoy a brand\u2019s\u202fe-newsletter,\u202fbut\u202fan irrelevant, unwanted marketing email from the same company will push people to unsubscribe.Put simply, the ability to achieve market-differentiating personalization across channels remains elusive for many brands. The technology challenges have been too costly and too resource intensive to overcome\u2026until now.The power of personalization, powered for business: Customer data platform solutionsWith recent advances in customer data platform (CDP) solutions, brands can build on a foundation of insights to impact every customer interaction. This solution can enhance a company\u2019s agility, provide a holistic source of customer data across the organization, and reduce costs.It then becomes a question of not “Why”, but \u201cHow?\u201d.The power of personalization jumps off the page at every customer engagement\u30fb72% of consumers\u00a0will only engage with personalized marketing messages\u00a0 \u30fbShoppers prompted with relevant product recommendations account for 26% of revenue on e-commerce sites \u30fb96% of consumer survey respondents\u00a0say customer service plays a role in their choice of and loyalty to a brandTo drive repeat business rather than one-off sales, enterprises need to bring the customer to the heart of every engagement. They must deliver rich, personalized, and outcome-focused interactions across any channel the customer ultimately chooses.\u00a0\u00a0To do this, they need to understand a unified vision of the customer.However, three major challenges\u00a0are preventing enterprises from\u00a0gaining this unified understanding:\u00a0\u00a0Too many data silos:\u00a0If several data sources each store part of known customer data, it becomes difficult and costly to unify these sources into a single profile. Without that view, customer engagement strategies will miss critical opportunities.The evolving data privacy climate: Customers around the globe have lost trust in businesses when it comes to protecting their personal data. As a result, regional governments have stepped in to apply tough regulations regarding data collection and processing practices. Now, companies face severe legal and brand reputation risks if caught out of compliance.An inability to manage data scale and complexity:\u00a0DIY solutions or stitched-together legacy systems cannot keep up with the amount of customer data generated by today\u2019s plethora of touch points. Many organizations do not possess the flexibility and agility necessary to\u00a0manage the volume, variety, and velocity of data\u00a0and deliver market-differentiating customer experiences.\u00a0Meeting the\u00a0challenge with a CDP\u00a0A customer data platform (CDP) is a solution to bring together disparate customer data into one system, and to allow for the easy sharing of this information across the organization.Until recently, CDPs were limited to marketing use cases. Now, data–centric\u00a0CDPs\u00a0can help deliver personalized experiences that nurture anonymous users into known, loyal customers using the customer\u2019s preferred channels.\u00a0To achieve this objective, these\u00a0new CDPs focus on four key areas:\u00a0\u00a0ConnectionsCDPs can connect every customer data source in an\u00a0organization into unified customer profiles. Updated in real time, these profiles can contain a true\u00a0360-degree view made up of 1st\u00a0party CRM data, 2nd\u00a0party, 3rd\u00a0party, offline data, event and activity streams along with transactional, behavioral, experience, and back-office data.\u00a0UnderstandingThe solution enables\u00a0deep understanding and insight into your customers to provide a foundation for relevant, personalized engagements whenever the customer interacts with a brand. Dynamic segmentation and audience management capabilities can combine with machine learning models to provide insight from the vast amount of data volumes ingested. RespectHow, when, and where\u00a0can\u00a0customer data can be used?\u00a0New CDPs connect Enterprise Consent and Preference Management\u00a0with other data purposes\u00a0to create a holistic\u00a0data\u00a0privacy\u00a0and governance\u00a0foundation. This helps to ensure\u00a0a brand\u00a0is operating within the applicable\u00a0consumer privacy and data protection\u00a0regulation and bolster\u00a0trust\u00a0with customers about\u00a0the brand\u2019s\u00a0data\u00a0practices.\u00a0EngagementThrough a CDP, an enterprise can provide\u00a0a customer insight foundation for\u00a0its engagement solutions in real time.\u00a0The end result:\u00a0Meeting the expectations of the customer at each engagement instead of creating journeys that just don\u2019t fit with their lifestyles or needs.\u00a0Give customers the freedom to choose their own path with customer data platform solutionsIn the end, an exceptional customer experience isn\u2019t a deliverable a brand can orchestrate with technology. There are too many variables: How\u2019s the customer feeling on the day in question? Where is the customer during the engagement? At its most basic level, the customer is in charge of a large majority of the experience.\u00a0\u00a0Brands are in charge of the environment presented to the customer. And the goal of this environment is to create the best possible chance for positive emotional reactions, no matter where, when, or how customer engagements occur. And with the new CDP solutions, businesses will be able to use\u00a0the power of personalization to enable experiences that strengthen customer loyalty.\u00a0\u00a0  Do you really know your customer? Find out how a CDP uncovers the insight you need to power CX that drives growth. 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