Shifting demographics, evolving consumer patterns, and exponential mobile adoption are shaping both local and global consumer markets. An overwhelming percentage of consumers from emerging markets with higher population growth rates will be between the ages of 25 to 35 in the coming decade. Meanwhile, “global greying” drives an aging population to hold a significant percentage of the market, an underserved demography rapidly evolving in behaviour with technology adoption. All of these individuals access digital services such as banking, retail, and entertainment and brands are competing for their attention.

Amidst these broader demographic shifts, businesses find themselves on an information highway, with a phenomenal increase in mobile device adoption and the use of social media networks. Succeeding in this new normal requires data to be timely and relevant, providing insights to support business outcomes and deliver hyper-personalised customer experiences while adhering to governance, risk, and compliance (GRC) guidelines.

Businesses already have or are investing in customer relationship management (CRM) software, data management platforms (DMPs), data warehouses, and data lakes. Yet, there are important questions any business must answer: Has the business properly identified the customer and the relevant customer profiles? Is the business sending the most relevant message to the particular customer? And, most importantly, is a hyper-personalised approach possible without looking at data, analytics, campaigns, and activation holistically? This is where the aforementioned solutions may struggle.

For example, think of all the SMS ads you receive daily. How many of these do you actually read? Consider the number of people who block SMS ads, which inadvertently leads to a negative brand perception. There is a more effective way to utilise marketing budgets and communicate with your target markets constructively.

A customer data platform (CDP) is the game-changer and your answer to this conundrum. A CDP provides an ever-evolving solution with the ability to integrate all four key areas of a customer-centric marketing lifecycle. The CDP consolidates the functions of customer data unification, analytical and statistical modelling based on artificial intelligence (AI) and machine learning (ML), campaign management leveraging developed models, and activation via the most receptive channels.

A CDP enables businesses to build customer personas for targeted marketing, drive customer loyalty and retention, and pursue new revenue streams through the following capabilities:

• Gain real-time data on customer buying patterns, trends, and locations.

• Connect all data about a single customer across multiple sources (e.g., CRM, ERP, sales automation, etc.) and identity resolution to unify customer data.

• Build customer profiles or personas by using unified data and run analytical models to gauge churn prediction, conversion rates, next best offers, and more.

• Craft hyper-personalised messages informed by analytical models that businesses can then execute through digital platforms and in-person interactions.

It is unsurprising, then, that the retail, banking, hospitality, and telecommunications industries—all of which face tough competition—are looking to adopt a CDP. There are two ways to get started with your CDP infrastructure: an off-the-shelf product or building your own. Off-the-shelf or “buy” CDPs naturally have a faster deployment time and reap ROI within a set scope. This itself is a significant advantage for a business. The “build” CDP approach provides more flexibility for customisation and, in some instances, even a lower commercial starting point. An emerging approach is building a “composable CDP,” leveraging the data warehouse your business has already invested in. All three approaches have their advantages, and businesses can select what works best for their requirements.

A CDP is a well-integrated solution, but as emphasised, it is an evolving one. Its effectiveness will depend on:

• The number of customer data retrieval sources, which are always increasing and require the development of plug-ins.

• Data cleansing and preparation processes to avoid false positives.

• Data protection levels to comply with regulations and avoid fraud.

• Other successful business models that you can adapt to your business.

At NCINGA, we not only bring CDP solutions to the table but also build plug-ins to enable additional data streams the business requires. One scenario is capturing the sentiment analysis of customers contacting your call centre. We integrate a data virtualisation solution with a CDP to provide a single source of truth to run analytical or statistical models. NCINGA has built functionality using generative AI, where a user can have a discussion with the system to gain insights using layman’s terms. Data residency and hybrid solutions offer the freedom and GRC compliance to run the CDP on both cloud and on-premise platforms. We build data warehouses, create custom analytical models, and develop dashboards and reports if your business needs these capabilities.

To conclude, CDPs will become imperative for businesses to keep abreast of evolving market trends and demographic changes, and their adoption will only continue to increase in the coming years. A technology solutions provider will enable you to leverage the many benefits of a CDP.

Source : DailyFT