5 Best Powerful Use Cases of CDP You Need to Know

Data on user engagement is necessary for businesses to comprehend user behavior on a website or app, evaluate the success of marketing initiatives, and figure out how to better meet users’ demands. Teams may now take advantage of a variety of marketing and analytics solutions that enable them to gather user acquisition, behavioral, and conversion data from various sources for creating reports. However, they must be able to do more with their data if they want to truly attain a competitive advantage.

CDP use cases are different ways you can achieve your business goals. This article explains the concept of a customer data platform (CDP) and shows how it may help contemporary businesses.

What is a Customer Data Platform?

A CDP is a centralized platform that makes it easier to collect, manage, transform, and use customer data.

The standard definition of a CDP is ‘a packaged software that creates a persistent, unified customer database accessible to other systems’.

Here’s how we can break it down:

• “Packaged software” refers to a CDP as a prebuilt system with lower risk, cost, and installation time than many other types of tools, like data warehouses, and setup and management requirements.
• A CDP “creates a persistent, unified customer database” with unique customer and visitor profiles. The platform gathers, links, and retains information specific to each user, gradually growing the database.
• Data in a CDP is also “accessible to other systems”, which means you can use the data for additional purposes. You may, for instance, send the data to sales tools to enhance the way you handle communications with clients both present and future.

How do B2B CDP use cases work?

Let’s assume somebody has successfully run a business idea just like yours and they hand their blueprint to you. Now, won’t it make it a lot easier for you? This is exactly how a CDP use case works.

To gain more clarity, let us understand how CDP marketing works.

From website visitors, present clients, and prospects, CDPs gather first-, second-, and third-party data.

This CDP data may be gathered from your website, email databases, lead generation forms, or customer relationship management (CRM) platforms. The data will then be saved and arranged by your CDP into unique profiles for your clients and prospects.

You may quickly trace a customer’s progression from an existing or potential customer to conversion using these profiles. For instance, you could observe the marketing tactics a user interacts with before purchasing something.

What are the Best Use Cases of Customer Data Platforms?

The abilities of CDPs enable you to accomplish several tasks that can favorably impact business growth. Given below are five of the most powerful CDP use cases to drive 10x business growth.

Personalizing the customer experience

Nobody wants to be generalized, each customer’s pain points and needs are unique. According to a recent study, more than 77% of consumers choose, opt, and pay more for brands that provide customized experiences for their clients.

Users are more likely to engage, convert, and become loyal customers when they receive personalized messaging and interactions that are timely, relevant, and effective.

You will be able to determine how users navigate your website, what actions they take, and if they complete the funnels based on the data gathered from your sources and kept in a CDP. Depending on a visitor’s previous behavior, personalization may involve making contextually relevant content recommendations and offers on the site.

Additionally, it can involve presenting the user with messages tailored to their industry, grabbing their attention with pertinent images or hues, addressing them by their employer or first name, or automatically filling out forms with information they have already entered.

Boosting Operational Effectiveness

Second on the list of CDP use cases is boosting operational efficiency. Any enterprise-grade CDP’s capacity to combine data from diverse data-producing channels and platforms is a vital feature.

Data silos are situations in which one department has access to a variety of data but is cut off from the rest of the organization. A CDP solves this problem. Data silos reduce workplace collaboration, slow down business efficiency, and jeopardize the accuracy of customer profile data.

66% of B2B customers will discontinue making purchases from a brand following a negative customer experience, according to research by Zendesk.

Monitoring your clients’ journeys

Monitoring your customer journey is by far one of the most important CDP use cases for marketing out there.

You need to know which interactions and channels led people to become paying customers or clients if you want to expand your customer base.

You can follow a customer’s complete journey, from the time they first learned about your company until the time they made a purchase, with a CDP.

As a result, you can discover the channels that generate the highest conversions for your business. As a result, you can concentrate your efforts on techniques that produce the best outcomes for your business rather than those that don’t.

Effective Marketing Campaigns

Real-time campaign activation made possible by a CDP enables marketers to deliver highly personalized marketing campaigns across all customer engagement channels. A marketing automation platform and a CDP work well together to streamline time-consuming tasks like lead qualification and campaign creation. This is one of the important CDP use cases.

You can make quick decisions on the best channel and content to target visitors. Furthermore, you can assess and monitor the effectiveness of the campaigns and distribution channels to hone and enhance the assets or messaging in the upcoming campaign.

For instance, CDPs can identify users who frequently receive your marketing emails and have explored your website’s merchandise but did not add anything to their shopping carts. Then, you may re-engage your audience by sending them alerts about previously viewed products.

Now that makes an excellent CDP use case, doesn’t it?

Enhance Return On Investment (ROI)

Increasing your ROI is undeniably one of the top CDP use cases. You want to be sure that your company will profit from the marketing methods you execute.

A CDP can help realize this objective. You can keep track of which marketing tactics and channels generate the most money for your business with the aid of CDP use cases. Additionally, it assists you in finding any gaps in your sales funnel that may be preventing prospects from converting.

As a result, you may optimize your marketing channels to boost your company’s performance. You may enhance conversions and sales by plugging any gaps in your sales funnel, for optimizing your website pages or ad wording.

Final Takeaways on CDP Use Cases

Understanding and adopting powerful CDP use cases can help you better comprehend how your company can integrate CDP elements into its operations to boost productivity. By implementing the right use cases, your business can have a chance to close any information gaps, improve data integrity amongst divisions, and connect channels, touchpoints, and devices.