It captures data. It cleanses data. It unifies data to create a single customer view. But a customer data platform’s talents don’t end there. From building loyalty and trust to increasing revenue, the business benefits of CDP, an evolution of customer relationship management (CRM), are many and varied. We’re sharing 7 ways that a customer data platform helps your business create standout customer journeys and drives personalization at scale.

1. Eliminating data silos

This is where the customer data platform really flexes its might. By breaking down data silos, the CDP allows for excellent data management and transforms otherwise haphazard, fragmented collections of names, email addresses, and purchase history into valuable, actionable data that updates dynamically in real-time.

Duplicate profiles that impact relevancy and analytics are removed, allowing the customer data platform to create a 360-degree customer view and carry out accurate metrics analysis, segmentation, and decision-making to deliver the types of personalized experiences that turn customers into brand advocates.

2. Unlocking AI-powered personalization

Leveraging historical and real-time data, AI-powered customer data platforms provide marketers with all the insights they need to decide the who, what, where, when, and how of personalized customer engagement.

AI-powered personalization is a valuable marketing tool for several use cases. While brands can use AI to identify opportunities to upsell products and services to relevant customers, they can also predict and identify customers who are unlikely to convert.

Excluding uninterested or unsuitable customers from campaigns to focus on higher-value customers saves time, and resources, and prevents these customers from receiving irrelevant or “out of touch” messages that contribute to churn.

3. Ensuring data protection and privacy

Customers choose to provide their first-party data in exchange for more personalized digital experiences, but they also want their data to be safe. With the ongoing threat of data breaches and GDPR and CCPA enforcement, building and maintaining user trust has never been more important for brands.

CDPs enable brands to comply with existing and emerging data protection and privacy legislation by centralizing customer insights – pulling together data sources, creating complete and up-to-date customer profiles, and making those profiles available in real-time. Not only does this centralized, customer-centric approach keep you and your customers safe when you collect data, but it also means you can quickly and easily carry out a data audit if, and when requested to do so.

4. Building omnichannel customer experiences

Exceptional CX calls for a thorough understanding of both online and offline customer interactions. A customer data management platform gives brands a deep understanding of their customers by ingesting data from online and offline sources and unifying it to create a single customer information view.

Using machine learning and AI, the CDP allows for data-driven customer segmentation based on criteria such as demographics, geographic location, and behavior and then activates relevant campaigns via various channels including mobile, email, webinars, and social media. As a customer’s channel preferences evolve over time, the customer data platform can adapt to these changes and react intuitively.

5. Increasing operational efficiency

Seamless integrations with existing tech stacks, like DMP or marketing automation tools, mean CDPs reduce setup costs substantially and save hours of engineering work and reliance on IT resources. By democratizing customer data, the CDP allows marketing teams to focus on creating next-level campaigns and experiences, while IT teams can concentrate on tracking, building, and new data science model optimization.

6. Improving customer lifetime value

Customer lifetime value (CLV) represents the total worth of a customer over their entire relationship with a brand. Considering that it costs significantly more to acquire new customers than to retain existing ones, it makes good business sense for brands to look after the customers that they have already converted by delivering engaging digital marketing experiences that encourage loyalty.

Using predictive insights, a CDP gives brands the ability to identify high-value customers and serve up the most relevant, personalized customer experiences — the kind that differentiates your brand from the competition and increases customer loyalty, retention, and ultimately, CLV.

7. Driving revenue

From improving customer acquisition to delivering personalized omnichannel experiences that drive retention, a customer data platform is one of the martech stack’s most powerful revenue generators. For example, the profitability of repeat or returning customers has increased 36% in the last decade. A CDP empowers brands to be able to collect first-party data that can be leveraged for targeted marketing for attracting repeat customers across their digital customer experience.

Sitecore Customer Data Platform

Sitecore CDP is an advanced customer data platform that increases conversion rates, revenue, loyalty, and retention by removing data silos and consolidating real-time and historical data from all online and offline channels to create a single customer view.

The platform’s secure privacy-by-design approach builds trust around data collection, while real-time segmentation allows you to deliver marketing campaigns using live audiences that track customer behavior across all touchpoints, streamline content management, and reduce advertising spend by retargeting audiences with precision.

Find out more about how Sitecore CDP can revolutionize your marketing efforts or read our guide to choosing a customer data platform.

Fiona Hilliard is a Content Marketing Manager at Sitecore. Connect with her on LinkedIn