3 Benefits of a Customer Data Platform

February 29, 2024 | 4 minute read
Patrick Maxwell
Solution Architect, Oracle Digital Experience Agency
Text Size 100%:

 

Many brands are excitedly exploring ways to deploy artificial intelligence and machine learning to improve their omnichannel experiences. However, most are quickly discovering serious limitations on their ability to move forward because of how scattered and fractured their customer data is.

It’s not hard to understand how we got to this place. Not only do customers interact with corporations through many different contexts and channels, but the operational platforms that manage those channels typically aren’t designed to communicate with each other or to access or assess customer data very well.

In order to make use of customer data to drive engagement and satisfaction, another kind of solution is required, one specifically architected to receive data from each of these operational platforms, standardize that data, interrelate it, and make it accessible. That solution is the customer data platform (CDP).

Let’s talk about the three major benefits that CDPs deliver.

1. Centralizing Customer Data

Customer data gathered by corporations is complex. CDPs help your entire organization function better and provide a better customer experience by centralizing customer data and making it accessible to every authorized platform across the business.

Consider how Japanese automaker Mazda implemented its CDP to improve online engagement with customers. The company is using the Oracle Unity Customer Data Platform to centralize customer data from first-party, online, offline, and third-party sources. The result is a single, real-time view of each customer, vehicle, and dealership, which is essential to their ability to understand when and how casual shoppers become “activated” and serious about making purchases.

Mazda is using this dynamic customer and vehicle information to trigger specific campaigns and advertisements that resonate with target audiences. As a result, they've seen a 230% increase in leads and a 5% lift in sales.

To hear more from Mazda about their experience, watch this webinar about how to Make Every Customer Interaction Matter with Oracle Unity Customer Data Platform.

2. Improving Personalization

Customers are bombarded by ads and marketing messages across dozens of channels, including SMS, in-app, websites, digital ad displays, paid search, in-store signage, television, radio, print, and direct mail—to name a few. Abuses by some have led consumer data privacy advocates, trade organizations, governments, and technology platform providers to tighten up permission requirements and place new restrictions on the collection of customer data.

These changes will make channels healthier overall, but do present significant challenges for marketers. If nothing is done, digital targeting and measurement will degrade, hurting performance and impairing strategies.

However, despite the end of third-party cookies, Mail Privacy Protection, and other restrictions, creating tailored experiences is still essential to building deeper relationships with customers and delivering value in exchange for their opt-in. To create true engagement requires organizations to collect and analyze massive customer data sets, which is why artificial intelligence (AI) and machine learning (ML) are integral to better understanding customers’ behaviors, engagement, and preferences. An enterprise CDPs not only collects and curates this massive amount of data, the most advanced solutions like Oracle Unity embed AI and ML capabilities directly in their platform to help make sense of it all. 

This allows organizations to target customer segments in the manner they are most likely to engage, at the time they are most likely to respond, and with personalized messaging that resonates with each individual’s interests and aligns with their previous behaviors, as well as their likely future needs.

To explore more than 170 criteria that can be used to tailor messaging, get our Segmentation & Personalization Ideas checklist via a free, no-form download.

3. Resolving Identities at Multiple Levels

Complicating efforts to create personalized experiences is the fact that people’s initial engagements with a brand are often anonymous. For instance, they might see a television ad during one of their favorite shows or see an ad placement on one of the websites they frequent. Even when they eventually do engage in a first-party way, they might still remain fairly anonymous—or what we call pseudonymous.

For example, perhaps they made a purchase in-store using a credit card. Maybe they visited your website and searched for a product or browsed a category they were interested in. Or they might have even signed up to receive marketing emails using an obfuscated or otherwise non-identifiable email address.

CDPs gather these pseudonymous activities and profiles and use deterministic and probabilistic methods to resolve these with known customer profiles over time. Once resolved to a known profile, the pseudonymous activities gathered before and even after that resolution become part of the greater picture of behaviors, interests, and engagement of that customer with the organization. This data can then be used to further refine how customers are segmented, treated, and engaged by the brand.

Customer data can be complex and voluminous. However, taming this data is essential for next-generation applications. CDPs create a strong foundation for the future, but take time to implement and set up. So, act now to ensure your brand is positioned to take full advantage of AI, ML, and omnichannel orchestration in the years ahead.

—————

Need help enabling customer-centric omnichannel experiences? Oracle Digital Experience Agency has hundreds of marketing and communication experts ready to help Oracle customers create stronger connections with their customers, partners, and employees, even if they’re not using an Oracle platform as the foundation of that experience. Handling everything from creative and strategy to content planning and project management, we consistently exceed our clients’ expectations, earning a customer satisfaction rate of 96%.

For help overcoming your challenges or seizing your opportunities, talk to your Oracle account manager, visit us online, or email us at OracleAgency_US@Oracle.com.

Now updated, this blog post was originally published on Oct. 12, 2021 by Monica McClure.

Patrick Maxwell

Solution Architect, Oracle Digital Experience Agency

Patrick Maxwell is a solution architect at Oracle Digital Experience Agency. He has more than 27 years designing and implementing customer-centric marketing solutions. Patrick is focused on helping clients integrate Oracle CDP and CXM solutions into their technology stacks so they can get maximum benefits.


Previous Post

Email Marketing Trends for 2024: Competitive Differentiators

Chad S. White | 9 min read

Next Post


Email Marketing Trends for 2024: Proven Essentials

Chad S. White | 14 min read