The customer data problem
To understand the benefits a CDP can bring to your business, first it’s important to understand how disconnected customer data is holding you back.
The proliferation of channels and data types has resulted in a customer data boom. This plentiful data is typically collected by separate, or siloed, systems that can store but not interpret it.
Customer data spans everything from anonymous ad impressions to known purchases, product usage, and customer service interactions. There are three main types of customer data:
Behavioral: Generated by a customer’s interactions with a company using devices connected to the Internet. This kind of data tracks which sites are visited, apps are downloaded, or games are played.
Demographic: Socio-economic information such as age, gender, population, race, income, education, interest, and employment.
Transactional: Documents an exchange, agreement, or transfer that occurs between organisations and/or individuals. Typically has either commercial or legal significance and can include transactions such as purchases, returns, payments, signups, reservations, and subscriptions.
The problem with siloed customer data is that it makes it difficult to understand who your customers are, what they’re doing, and what they want. Without data-driven insight into the core of your business, decision making is limited and less effective.
Each category of customer data can be used to improve engagement with new and existing customers. In order for customer data to be useful, however, it needs to be removed from the silos, unified, and accessible.