Why You Need a Customer Data Platform for First Party Data

Digital Marketing after Cookies

With the rise in privacy concerns and considerations, most technology platforms are implementing restrictions around data collection and user tracking. Talk about a marketer’s nightmare! Organizations must rethink their customer data strategies and review their existing marketing technology. Third-party cookies were designed to store anonymous information that helps marketers understand their audience better, target their ads more effectively, and improve media buying efficiency. With the impending disruption of a world without cookies, marketing leaders and their teams must prepare for the future and focus on consent-based engagement, primarily with first-party data.

A customer data platform to the rescue

The good news is, first-party data is an invaluable, indispensable resource that will help companies succeed. A customer data platform (CDP) feeds on first-party data by collecting, unifying, and enriching customer information stored across channels. Marketers can easily segment customers based on specific behaviors and characteristics.

By working with first-party data, organizations get a holistic understanding of their customers, making customer interactions more innovative, optimized, and more personalized. Less than 5% of digital marketers say they’ve yet to realize 80% or more of the potential in first-party data.

Data drives customer experiences; even more, first-party data allows organizations to create customer experiences tailored to the individual accurately. To do this, organizations need to have a robust data ecosystem. One platform that stands out as the leading data-driven solution is the CDP.

Learn more about the difference between a DMP and a CDP.

Value of a CDP

Having inaccurate, duplicate, or incomplete data can cripple an organization. That’s where a CDP comes in. It acts as a centralized hub, storing data in a single, scalable place, making it fast and flexible to read through and analyze all data at once across the organization.

A single platform that unifies data gives marketers a 360-degree view of their customers. This capacity unlocks the potential to build rich, dynamic customer profiles, with the ability to recognize behavioral and cross-channel patterns.

You might be wondering about the overwhelming volume of data, but a CDP is more about quality than quantity. With a CDP, you can track the usefulness of your first-party data in the sense of understanding what’s working, what’s not and adjust strategies accordingly. Your organization can gain access to real-time insights across all touchpoints.

Organizations can achieve far more effective personalization with a CDP because they integrate data traditionally siloed by separate tools and processes. By harnessing data around the customer, marketers can shape personalized content that delivers exceptional customer experiences. With CDP, businesses can reduce their marketing costs by improving audience targeting, enhancing omnichannel engagement, and shortening conversion times. Learn more about how businesses can generate revenue with a CDP.

Summary

Your data strategy requires constant refining, focusing, and fine-tuning. This new pivot towards first-party data is on the rise, causing a ripple effect in adopting a CDP. As a result, organizations understand the value of data and invest in their marketing technology to explore its potential.

If you have any questions about selecting or implementing a CDP, please don’t hesitate to reach out for a no-cost, no-commitment consultation, and a member of our team will contact you shortly.