In today’s digital age, businesses face an unprecedented challenge of providing personalized experiences to their customers across multiple channels. Customer 360 insights, Data Management Platforms (DMPs) and Digital Experience Platforms (DXPs) have emerged as powerful tools to help businesses address this challenge. By aggregating customer data from various sources, DMPs enable businesses to gain a comprehensive view of their customers’ behavior, preferences, and needs.
According to recent research by MarketsandMarkets, the global DMP and DXP market is expected to grow from $1.2 billion in 2020 to $3.2 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 22.3%. The report cites the increasing demand for personalized customer experiences and the need for a single customer view as the major drivers of this growth.
One of the key benefits of using a DMP is its ability to improve customer satisfaction metrics. By leveraging customer data, businesses can create personalized experiences that cater to individual customer preferences. According to a recent report by Forbes, companies that provide personalized experiences to their customers achieve an average Net Promoter Score (NPS) that is 12% higher than those that don’t.
Moreover, DMPs enable businesses to deliver consistent experiences across all touchpoints, which is critical to building long-term customer loyalty. A study by Accenture found that 81% of customers are more likely to do business with a company that delivers personalized experiences. Additionally, 86% of customers are willing to pay more for a better customer experience, according to a study by PwC.
In addition to improving customer satisfaction, DMPs can also help businesses optimize their marketing campaigns. By analyzing customer data, businesses can gain insights into which channels and messaging resonate with their customers. This allows businesses to tailor their marketing efforts to better reach their target audience and drive more conversions.
There is a lot at stake for online stores or retailers when it comes to a fruitful customer engagement with a brand. The deeper the customer-brand connect is the more there is a chance for long term success for businesses and building a meaningful and mutually profitable relationship with your customers .
The digital revolution has caused an explosion in marketing channels and the way your prospects and customers want to be targeted.
In order to optimize the experience for existing customers and to target the right prospect audiences a flexible cloud to on premise integration, data ingestion and analytics platform needs to be in place.
The following reference architectures attempt to visualize a seamless consumer experiences architecture for your digital marketing and analytic insight targets.
From a marketers view point on a high level the following solution layers apply:
From an enterprise architecture and business intelligence perspective viewpoint the following solutions need to be integrated and enabled for advanced business insights like lookalike modeling, consumer profiling, propensity and attribution and to destroy customer data silos.
The building blocks of a digital consumer experience platform:
These building blocks of a digital customer experience platform need to be in place to foster long-term relationships for retailers and service providers to offer meaningful personalization.
The goal of personalization here is not to engage with one audience of many, but to engage with infinite audiences of one
The data to build a 360 degree customer profile and to identify existing customers with the highest customer lifetime value and propensity comes from various sources with different data pointers throughout our customers journey with us as described in my previous article Consumer analytics 2.0.
In itself the collected data might not provide additional insights at first glance, but through data enrichment, inclusion of demographic, geospatial and appliance “in the moment” data and social data combined with purchasing history, predictive analytics and machine learning can uncover new insights to fine tune your marketing, media and product campaign activities.
These data sources of information can be ingested into the customer experience platform in an automated fashion and have business rules and machine algorithms applied to in order to find you target digital customer infinite audience of one.
The digital customer experience and insights platform:
Through the combination of online and offline data from various channels not only the interactions with existing customers can be optimized along that lifecycle, but by lookalike modeling and automation of big data algorithms your business intelligence tools can help you identify prospects with similar attributes and preferences like customers that are already purchasing your products or services.
In a nutshell a consumer insights platform architecture will enable you to :
- Gather and connect customer data from all available channels online and offline to build out your customer profiles.
- Analyze your multi-touch attribution where different touch points of the customer journey will help you to optimize when and how to act based on data and insights to ensure customers are receiving the right offer via the right channel at the right time.
- Understand the best channels and the most efficient ways communicate and deliver personalized messages to the customer, who to target and when to stop messaging and avoid over exposure
- Identify new opportunities of lookalike customers and utilize big data insights to serve existing customers even better