“Half of the money I spend on advertising is wasted. The trouble is that I don’t know which half.” That age-old, questionably attributed quote still resonates with so many retail marketers who have trouble effectively converting customers. But it doesn’t have to be that way with a customer data platform (CDP).
What is the role of a CDP in commerce? In case you’re not familiar, CDP software creates a unified database of all of your customer interactions, which can integrate with other technology in your marketing stack. A CDP captures information from multiple systems to create a single view of the customer across all of your channels — including in-store, email, chat, customer support, website interactions and more. As a result, your marketing team can create more effective, targeted campaigns with the goals of increasing conversions or driving customer loyalty.
A customer or potential customer doesn’t always have to be known for a CDP to be effective. User profiles can also be assembled based on actions anonymous users take on your website. A CDP can group customers into certain segments based on their behavioral attributes. For known customers, a CDP can even more effectively group people by common actions they’ve taken — whether they’ve registered for a loyalty program, abandoned a cart, or are prime targets for a certain product or promotion.
Using a CDP in Retail
Let’s look at an example of how a CDP can be used by an omnichannel retailer. Let’s say that as a sporting goods retailer, you know that the most effective times to target new customers with offers are at the beginning of childrens’ sports seasons. A CDP would enable you to segment your customer database by parents of children from 5-18. Based on previous behavior, you may know that a certain subset of these parents bought baseball equipment last season, so they’d be most likely to repeat a purchase this year.
Or you may be able to blend your dataset with third-party…
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