Recent study by Forrester and commissioned by Oracle found that customer data platforms (CDP) is vital to achieve marketing success and achieve superior customer experience. Forrester conducted an online survey of 337 marketing and advertising professionals in North America and Europe who are responsible for customer data, marketing analytics, or marketing/advertising technology.
The report says only 11% of firms effectively use a wide variety of data types in a unified customer profile; these same leading firms are 2.5 times more likely to increase customer lifetime values as a result of unified data management. Marketers also get the opportunity to improve their organizations’ customer data practices. This means Leveraging third-party solutions, earning key stakeholder buy-in, and collaborating closely with data professionals are key elements to successful implementation. Firms that effectively leverage unified customer profiles are more likely to experience revenue growth, increased profitability, and higher customer lifetime values.
Unified Customer Profiles Lead to Better Business Results
Consumer’s expectations are growing day by day for more personalized experience in turn leading marketers to leverage customer data for a unified customer profile platform. Decision makers indicated that unified customer profiles help deliver on a number of top priorities which include the following.
75% find improving customer experience to be a critical or important objective for customer engagement data. Decision makers indicated that unified customer profiles deliver on a number of top priorities.
- Customer profiles support customer focused operational priorities like improving the use of data and analytics, personalization, and content marketing — as well as customer-focused business priorities like aligning brand promise with CX and developing new products/services.
- Marketers see the value of investing in technology that wrangles the massive amounts of customer data generated each day to continuously optimize customer interactions.
This is leading to CDP investment growth. 69% of respondents expect to increase CDP investment at their organizations over the next two years; one-quarter expect it to grow by more than 5% CDP users expect their customer data management solution to support the entire customer lifecycle.
From initial customer acquisition to deeper understanding for retention, firms want to leverage customer analytics across the entire buyer journey, from known to unknown customers. CDPs are a growing component of their overall customer data management strategies, which also includes data management platforms (DMPs), customer relationship management (CRM) and marketing databases, customer profiles and digital intelligence, and data warehouses and data lakes.
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