B2B marketers might understand what a customer data platform does, but may struggle with the next-level concept -- connecting what a CDP does with building a smarter, more efficient marketing operation. This post is intended to answer 6 key questions B2B marketers may have about how an automated CDP can make their lives easier and their marketing efforts better.
1. How can a CDP help B2B marketers enhance the way they access and leverage customer data?
Nothing inhibits marketers more than customer data being stuck in silo’s. Having data trapped in disconnected systems means marketers must waste valuable time manually pulling together essential customer data. The result, other than exhausted marketers, is slow and impersonal marketing campaigns that have your savviest customer leaving you for competitors who are actually able to leverage their data to gain a deeper understanding of customers. A CDP explodes your silo’s and provides “one source of truth,” meaning full visibility into your customer data (and behavior). In terms of data management, a CDP is foundational.
2. How can a CDP transform raw data into actionable customer insights? An automated CDP identifies behavioral patterns in customer data. It learns and keeps learning, sharing deeper insights about what your customers do and why. For instance, if most purchasers of X also purchase Y, your AI-driven CDP would identify this pattern and enable you to create a special “bundling” offer for whenever a customer purchases X or Y. You can easily take advantage of cross-selling and upselling opportunities that your aggregated customer data suggests, thus boosting revenues. As underlying customer propensities get uncovered, you can create micro-segments around these behaviors to enhance the personalization (and effectiveness) of your B2B marketing.
3. How can a CDP help us manage “anonymous data,” turning it into qualified leads that generate more revenue? Customers don’t necessarily provide you with all the information you want. Some will come into your funnel briefly, provide almost no personal information, and then drop out. Should you simply ignore these prospects? One of the key features of a CDP is its capacity for data enrichment, meaning that the platform can help you identify anonymous customers by filling in missing information (such as email addresses, IP addresses, and phone numbers). Data enrichment enables you to clearly identify your customers and continue the interaction. Once data enrichment has “filled in the blanks,” you can then engage these customers using the full-force of your CDP “personalization engine.”
4. How can a CDP help our marketing team “do” data analytics? With a CDP, you don’t need a PhD in data science because the platform automates so many functions previously performed by expert data scientists. Employees with functional roles (such as marketers) can become effective “citizen data scientists” who leverage the CDP’s convenient data analytics tools and processes. For example, marketers can segment customers using various factors and then automate targeted campaigns to reach those segments. You can develop multiple hypotheses and use customer analytics to test them, optimizing as you go.
5. How can a CDP help with emerging regulations, such as GDPR? Having all your relevant customer data in one place, and being able to customize that data, doesn’t just drive marketing ROI but also regulatory compliance. GDPR has compelled marketers to seek and maintain customer permission. By enabling more personalized and relevant marketing, your CDP supports continued customer permission, as well as “permission management.” When you know your customers, they tend to stay with you. As for regulatory reporting requirements, your CDP enables you to easily “pull” customer data you may need for reporting.
6. How well does a CDP fit into our existing martech stack? A CDP pulls together customer data from various sources and systems in order to provide an essential “single source of truth.” Your CDP will have APIs that enable it to share relevant customer information across all your systems (internal or external) and your entire organization. In terms of systems integration, a CDP works seamlessly with your existing tech stack, and enhances all your other systems because it enables you to conduct customer analytics and gain full-funnel, cross-channel visibility into every customer you have. That capability is exactly why you have a tech stack.
In conclusion, a CDP enhances everything your B2B marketing team does, enabling you to gain full visibility into customers’ behavioral patterns and learn more along the way. A CDP does for marketers what a compass does for navigators -- it shows you where to go. For B2B marketers, that destination is revenue growth.
Have even more questions? Check out the Zylotech Resources page here.
Chuck Leddy is a Zylotech contributing writer.
If you liked this post, check out our recent blog post: The importance of alignment for ABM success.