Customer Segmentation & Personalization with CDP
How to increase CLV and reduce marketing spend with customer segmentation and personalized omnichannel experiences enabled by CDPs.
Reach the right people, in the right channels, with personalization fuelled by real-time CDP data
Segmentation is not a new tactic for you, marketers. Segmentation has always been the way to target messaging to specific groups of people to make more relevant content for those people. However, regular segmentation (based on the demography, geography, psychographic or behavioural attributes of a group of individuals) does not cut it anymore in the era of personalization.
Although segmentation data can improve the knowledge of these groups, using general segmentation as a basis for marketing activities does not enable marketers to achieve granularity and unlock the added benefits of personalization. Marketers need to take a step further, using the segment-of-few and segment-of-one approaches along with personalization to reduce costs on marketing, improve the KPIs of your marketing activities.
According to McKinsey, personalization can deliver 5 to 8x the ROI on marketing spend and lift sales 10% or more.
With the rise of big data, companies can access more information and get deeper insights about their customers, especially in terms of their behaviour (thanks to the tracking of first, second-and third-party cookies).
However, few companies are currently capable of efficiently managing, analyzing, and activating this data.
According to the 150 respondents of the 2020 Gartners’ CX survey, issues related to collecting, managing and storing customer data ranked within the top 3 challenges for 4 out of 10 respondents. Organizations are still struggling to deliver the personalized experiences their customers seem to desire.
How can I manage and analyze customer data to enable true personalization and more granular segmentation that will allow me to achieve better marketing results?
How CDPs enable true Personalization and advanced Segmentation
A CDP is a must-have Martech solution for those brands aiming to enable a personalized, omnichannel customer experience. As Gartner defines it: “a CDP is effective at centralizing data collection, unifying customer profiles from disparate sources, creating and managing segments, and activating those segments in priority channels."
With its real-time and centralized data, advanced analytics, AI, and even predictive capabilities, CDPs unlock deep customer insights, through detailed process activate the data across relevant channels.
CDP Use Cases
Some example use cases of CDP for customer segmentation and personalization:
Find high-value segments
Use key characteristic shared by your top customers to identify and reach potential new customers with personalized incentives to support their already high likelihood to convert or purchase.
Personalized trigger messaging
Personalize different omnichannel messaging triggers based on historical unique interactions of your customers. Is your customer more likely to convert/purchase through the desktop web channel? Then, focus your attention on reaching out to them when they are browsing on desktop vs on their mobile.
Identify under-served segments
Uncover and reactivate segments with high potential (because they have a high conversion rate compared to average) but who have been looked over with previous marketing initiatives.
Identify channel preferences
Identify the channel your customers prefer to use to engage with your company historically. Then, align your marketing accordingly to avoid ad fatigue, spamming and annoying your customers and improving the allocation of your marketing budget.
Use personalized incentives for high-loyal customers and create loyalty programs to help you retain customers, reduce your customer churn and solve your customers' individual needs through their entire lifecycle.
We can support you in crafting a digital strategy to reach your customer in a more effective and efficient way and implementing the right CDP solution for your business. We have helped companies like Carlsberg, Sligro, Kawasaki, ForFarmers creating the best Digital and E-commerce Experiences for their customers. We can do so for yours too.
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