Breaking Down Silos - How CDP is transforming the omnichannel communication landscape?

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Published on
February 13, 2023


   Customer Data Platforms (CDPs) are increasingly becoming the backbone of Direct-to-Consumer (D2C) companies as they unify customer data and provide a single source of truth for customer insights. With the explosion of data from multiple channels, CDPs help D2C companies consolidate data from disparate systems, including e-commerce, marketing automation, and customer service, into a centralized database.       

   Recent studies have shown that the use of CDPs is rapidly increasing, with Forrester predicting a 35% growth in the CDP market by 2024. Furthermore, a survey by WBR Insights found that companies using CDPs have experienced a 15% increase in customer engagement and a 12% increase in revenue.             

   The rise of CDPs is transforming the way D2C companies approach their customer data and driving significant business benefits. By unifying data and providing a complete view of the customer, CDPs are enabling D2C companies to deliver more personalized and relevant experiences to their customers, leading to increased customer engagement and revenue growth.  


   The CDP approach to unification  


   Unifying customer data for D2C (direct-to-consumer) companies involves integrating information from various sources such as online and offline purchases, website interactions, and other customer touchpoints into a single, centralized database.         

   To achieve this, the following steps can be taken:  

  • Data collection: Collect data from all relevant sources, including e-commerce platforms, CRM systems, marketing automation tools, and customer support systems.
  • Data cleansing and normalization: Clean and standardize the data to ensure consistency and accuracy.
  • Data integration: Integrate the data into a centralized database, such as a data warehouse or a cloud-based solution
  • Data analysis: Analyze the data to gain insights into customer behavior and preferences.
  • Data enrichment: Enhance the data with additional information, such as demographic and psychographic data, to create a more complete picture of the customer.
  • Data governance: Implement processes and technologies to ensure the data is secure, accurate, and up-to-date.


   By unifying customer data, D2C companies can improve their understanding of their customers and make informed decisions about marketing, product development, and customer support.  


   8 must-have capabilities for your customer data platform  



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   Increase in Sales  


   CDPs can significantly contribute to tying together customers' fragmented journeys. But in addition to that, they can also assist you in improving ROI and conversion rates.  It can automate and remove tedious, time-consuming duties from marketing professionals' everyday chores, resulting in more agile daily marketing activities.  


   Better Branding  


   High requirements are set for regulation, privacy, security, system dependability, interoperability, and performance by brands looking to reinvent the consumer experience. A CDP must fulfil these requirements while also seamlessly integrating into your marketing ecosystem and current organisational frameworks.  


   Target Segmentation  


   A CDP should have the capability to segment customers based on their preferences and purchase history. This enables businesses to target specific customer groups with personalized marketing messages and offers, resulting in increased conversions and sales.  


   Retaining Customers  


   No matter how effective your acquisition approach is, your prospects of surviving are minimal if you can't keep your consumers. With a CDP, marketers can look at the buying patterns of both current and former clients to spot those who are at risk of leaving, and they can move quickly with offers and messaging to keep them on board.  


   Personalized Omnichannel Communication  


   Only when data and analytics are turned into individualised consumer experiences can their worth be realised. A CDP must turn on personalized experience delivery and measurement, synced across all customer touch points with the brand.  


   Predicting Customer Behavior  


   A CDP should have the capability to predict customer behavior based on their past interactions. This enables businesses to proactively reach out to customers with relevant offers and recommendations, resulting in increased conversions and sales.  


   Retargeting and Modelling  


   Retargeting enables businesses to reach customers with personalized offers and advertisements, resulting in increased conversions and sales. Hence, a CDP should have the capability to model customer behavior, allowing businesses to make informed decisions about which customers to target and how to reach them.  


   360-degree Customer View  


   A CDP should provide a 360-degree view of customer interactions with the brand. This enables businesses to understand the customer journey and make informed decisions about engaging and retaining them. By providing a complete view of the customer, businesses can improve the customer experience and build long-lasting relationships.  


   Revitalizing customer relationships - How CDP engages loyal shoppers?  


   First and foremost, a CDP collects and integrates customer data from multiple sources, including online and offline interactions, customer service interactions, and transactional data. This data is then organized into a unified customer profile, providing a complete view of each customer.         

   By having all of this information in one place, marketers can better understand their customers and deliver more relevant experiences in the following ways such as:  


   Track of Purchase History  


   For example, a retailer can use a CDP to gather information about a customer's purchase history, preferences, and online behavior. They can then use this information to create targeted marketing campaigns, such as email promotions for products that the customer has shown an interest in. This personalized approach not only helps to build brand loyalty but also increases the likelihood of customer engagement and repeat purchases.  


   Real-time personalization  


   Another key benefit of CDPs is that they enable organizations to have a real-time view of their customers. This means that as soon as a customer interacts with the brand, the information is instantly captured and updated in the customer profile. This allows for real-time personalization, such as offering a customer a discount on a product they've just added to their cart or suggesting related products based on their recent search history. This type of instant engagement can be a powerful tool for building customer loyalty.  


   Privacy and security  


   CDPs also make it easier for organizations to manage their data and maintain privacy and security. They can also easily manage the consent and preferences of their customers, ensuring that they are only using the data in ways that the customer has agreed to. This helps to build trust and credibility with customers, which is essential for building brand loyalty.  


   From Siloed Experiences to Seamless Journeys - How CDP is helping D2C Brands?  


   In today’s digital world, customers expect a seamless, omnichannel experience, regardless of the channel they use to interact with a brand. However, many companies struggle to deliver true omnichannel personalization because they lack a unified view of the customer. They might have customer data scattered across multiple systems and touchpoints, making it difficult to get a complete picture of the customer and to personalize interactions in real-time.  

   This is where CDP-driven omnichannel personalization paves the way. A customer data platform uses data to create a 360-degree view of the customer, including demographic, behavioral, and contextual information. 

   For example, if a customer visits a website and browses a specific product category, the CDP can use that information to show them relevant ads or product recommendations on other channels, such as social media or email. This type of cross-channel personalization is only possible with a CDP because it allows companies to track the customer’s journey and use that information to deliver relevant, personalized experiences.      

   Another important aspect of CDPs is that they enable companies to test and optimize their personalization efforts. With a CDP, companies can track the results of their personalization efforts and adjust their strategy accordingly. For example, if a certain type of personalization is not resonating with customers, the CDP can provide insights into why that is the case, and help the company make changes to improve its personalization strategy.    

   In addition to improving personalization efforts, CDPs also have a positive impact on the customer experience. By delivering personalized experiences across all channels, customers feel that the brand understands their needs and preferences. This, in turn, leads to higher engagement and loyalty, as well as increased sales and revenue.  




   It’s worth noting that CDPs are not just for large enterprises. Small and medium-sized businesses can also benefit from CDPs, especially as they look to compete with larger companies in terms of personalization. Many CDPs are designed to be scalable and can be easily integrated with existing systems, making them accessible to businesses of all sizes.   

   In conclusion, CDPs are revolutionizing the way companies personalize their interactions with customers. By providing a unified view of the customer and enabling real-time personalization across all channels, CDPs help companies deliver seamless, omnichannel experiences that improve customer engagement and loyalty, and drive sales and revenue.  


   Want to know more about CDPs? Get in touch with Fornax today.  


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