A regular dose of D2C-centric resources & tools for Growing Brands, Startups & Entrepreneurs.

CDP are replacing CRM's in the customer-centric world

…and the first thing brands should know is that CDP is not the same as CRM

CRM (Customer relationship management) organises and manages Customer-facing interactions with your team

Vs

CDP (Customer data platform) collects data about a customer's behaviour in interacting with your product or service

Basically, CDPs provide a big picture of how all customers and platforms interact with your brand, while CRMs note interactions between a specific account and your brand.

CRM manages interactions with existing, past, and potential clients. It uses data of clients history with a company to improve business relationships, specifically focusing on client retention and driving sales growth.

CDP allows transforming raw into actionable data to deliver the best possible holistic Customer Experience by using their preferred communication channels and tactics that work.

The Challenges solved by CDP

1. Implementing customer segmentation

2. Employing automation processes

3. Collecting, managing, and activating customer data

4. Improving recommendations aka personalisation

5. Increasing customer loyalty

• CRMs are mainly designed for customer-facing roles, like salespeople and customer success representatives
  
  Whereas CDPs are complex and help marketing, products, or service, not just sales.

• CRM manages only registered customer data and uses predefined first-party data
  
  Whereas CDP handles them all as the table suggests.

What D2C brands can expect from the right CDP

360-degree Customer Profiling

Utilise the potential of zero, first, and third-party data to establish a comprehensive customer profile, gaining genuine insights into their requirements.

Unified database

Combine structured and unstructured data gathered from various sources into a cohesive and enduring customer database, using a single customer identifier for a unified view.

Actionable data

Leverage the collected data to make informed decisions and enhance your brand's marketing processes.

Packaged System

Implement a user-friendly set of features within a marketer-managed system that enables effective communication, segmentation, and optimization of the customer journey using customer data.

Predictive Analytics

Discover the best course of action with a consumer to meet their requirements, enhance engagement, and maximise their lifetime value by predicting their likelihood to make a purchase or the risk of churning.

Data-driven offer personalisation

Examine the behavioural and transactional activity patterns of your customers and provide personalised 1-to-1 product recommendations for cross-selling and upselling opportunities.

To Wrap it Up

• 73% of marketers believe a Customer Data Platform will be critical to their Customer Experience efforts

• 44% of organisations found CDP helping in driving Customer loyalty (Forbes)

• In the last 5 years, the overall volume of events that customers have tracked through Customer Data Platform increased by 60%

Meaning, investing in CDP is investing in customer experience.

That’s the end of our talk on “D2C Brands brace for reduced Customer Loyalty”...

☕ See you on the next coffee date!

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