Which Behavioral Data Platform is Right for Your Company
What does the term “customer data platform” mean? In the wake of the pandemic, which witnessed a surge of 72% in digital interactions, businesses were compelled to seek out software solutions that could efficiently organize and unify customer data, making it accessible to various teams.
This is where a customer data platform comes into play. It is a prebuilt system designed to centralize customer data, serving marketing campaigns, customer service, and customer experience initiatives.
A customer data platform, or CDP for short, is like a special system that gathers and organizes all the information about a customer. This information can be used for things like advertising, helping customers, and making their experience better.
The CDP creates a complete picture of each customer by bringing together different pieces of information about them. It’s like putting all the puzzle pieces together to see the full picture. Once the CDP has this complete picture, it shares it with other tools or systems that might need it, like social media platforms for advertising.
The CDP also keeps track of how customers interact with a company. It looks at things like what they buy, how they use a website or app, and what they say or do. This helps the company understand their customers better and make decisions based on that information.
Customer data platforms (CDPs) are responsible for creating a comprehensive 360-degree customer profile, often referred to as a single customer view. These profiles are utilized by third-party tools. CDPs gather data points and amalgamate them into a coherent customer profile, which can be easily understood. Subsequently, this profile is made available to other systems that require it, such as LinkedIn’s advertising platform. Additionally, CDPs monitor, analyze, and manage customer interactions.
In contrast to data warehouses and data lakes, a CDP surpasses the mere storage of customer data; it functions as an integrated solution for collecting, storing, and analyzing data. A well-optimized CDP takes it a step further by constructing distinctive customer profiles from a variety of interconnected data sources, ensuring a personalized touch.
In order to foster continuous growth for your business, it is crucial to incorporate a customer data platform (CDP) that emphasizes human interaction. Here are some reasons businesses would use CDP:
Here are some features to look for in a customer data platform. In addition to these core features, there are a number of other factors that PMMs should consider when evaluating a CDP, such as:
- Ease of use: The CDP should be easy to use for both technical and non-technical users.
- Scalability: The CDP should be able to scale to meet the needs of your business as it grows.
- Integrations: The CDP should integrate with your existing marketing platforms and systems.
- Customer support: The CDP vendor should provide excellent customer support.
- Here’s a chart below on other features to look out for:
By considering these factors, PMMs can ensure that they choose a CDP that meets the needs of their business and helps them achieve their marketing goals.
Cultivating satisfied customers not only increases the likelihood of their return, but also amplifies their advocacy for your product, ultimately attracting potential new customers and bolstering your business. To effectively satisfy your customers, it is imperative to understand HOW and WHY they engage with your services while staying attuned to their evolving expectations. This can only be achieved by transforming the raw data collected from your users into practical insights.
Customer data platforms (CDPs) serve as the foundation for hosting and analyzing customer data, allowing you to construct comprehensive marketing profiles linked to actual individuals. This empowers you to deliver personalized experiences that align with their specific expectations.
Let’s dive in on some of my favorite CDP tools on the market and highlight top essential features to consider when selecting one for your business.
Bloomreach: Collects data from all possible sources and build a unified Single Customer View to understand your audience, and uncover hidden patterns in customer behavior.
- Mouseflow — Detailed data for every touchpoint of the user’s journey
2. Maze- Best for continuous product discovery and unmoderated user research
3. Mixpanel — Best for in-depth reporting
3. SnowPlow- Best for creation of custom Behavioral Events so that one can monitor more nuanced activity.
4. CleverTap — Best for mobile-first products
5. FullStory — Combines quantitative and qualitative data in real-time
6. Hotjar — Best for all-in-one user behavior analytics
7. Userlytics — Best for easy user experience testing
8. Datadog — End-to-end visibility into user journeys
9. Crazy Egg — Best for detailed heatmaps of user interactions
10. Creabl — Best for tracking conversion funnels and retention factors
Is CDP right for you?
Before diving into any new technology, it’s important to assess the specific needs of a business and identify any existing gaps.
Will collecting data be beneficial, or will it lead to a never-ending cycle of adopting new technologies to keep up with emerging platforms?
Setting ambitious goals is crucial for organizations to determine which technology investments should take priority and how resources might need to be reorganized in order to truly prioritize the customer.
Customer Data Platforms can address internal customer data issues and offer a comprehensive view of customer data. If improved segmentation capabilities are a priority, especially from a marketing perspective, CDPs can prove useful.
However, they lack insight into customer journeys, which are the most valuable lens through which to understand customers, discover their needs, and take timely action to assist them in achieving their goals.
Therefore, if engagement and maximizing lifetime customer value are primary objectives, relying solely on a CDP won’t suffice. It’s worth noting that when the need arises for deeper insights or utilizing them to enhance omnichannel experiences for each individual customer, considering a Journey Orchestration Platform would likely be beneficial.
