You are likely sitting in your chair, or maybe standing at your desk, and wondering… Why should I care about Customer Data Platforms? Why would I work with them? What can they do for me? And I’m sure you have a lot of questions! But don’t worry. I will not just show you why Customer Data Platforms (CDPs) are so important for your e-commerce business. But, in this blog, I will show you also how it works and how to use them to create more accurate customer profiles.
What is a customer profile?
A customer profile is a representation of the characteristics and needs of your customers. It can include anything from demographic data, psychographic data, and behavioral data about the customers. Your CDP will help you identify these audiences based on their motivations and needs. As well as behaviors that align with your product or service offerings.
A customer strategy will help you focus on developing products or services for specific groups of customers so that you can better target your marketing efforts and increase sales as a result. It is similar to customer profiling in some ways (e.g., both are used to create buyer personas). But, it differs because it focuses more specifically on the business side rather than the actual customer itself.
A customer profile tells you what they want, what they need, and how much they’re willing to spend on your products. A good customer profile is more than just demographic insights, it adds behavioral and psychological aspects to it too.
Why are CDPs crucial to attaining customer profiles?
CDPs are crucial to attaining customer profiles because they provide the insights you need to understand your customers. By taking a look at their behavior, preferences, and needs, it becomes easier for you to build messaging and offers that will resonate with your customers
CDPs help you understand what drives their buying habits. So that you can figure out how best to meet their needs. They also help pinpoint areas where they could potentially be spending money (and therefore become customers).
By having access to all your customer data in one place, your team can build out detailed customer profiles that include:
- Demographic information (age, gender, location)
- Psychographic information (personality traits)
- Behavioral information (what they do online, what they buy)
These three data points are key because they help you understand your customers better. For example, if you know that one of your customers is male and lives in Los Angeles. You might be able to infer that he’s a professional in his 30s who spends most of his free time watching sports on TV.
When you’re trying to reach new people (like potential customers) who aren’t already familiar with your product or service. Tt’s important to know as much about them as possible. By knowing what makes each customer unique—their age groups, genders, and locations. You can tailor your marketing strategies accordingly.
However, if you are able to tie more than just demographic information to your customers, you will have a much better understanding of who they are, and how to target them.
I am talking about the ability to understand their price sensitivity, their preferred shopping hours, or channels, and whether they react to discounts or other offers. This behavioral data is key to making sure you stand out from the noise. And it helps you reach your customers in the most effective way possible.
Customer profiles help you understand what makes each of your customers unique
Your ideal customer profiles provide you with the information you need to understand what makes each of your customers unique. Use this to create more relevant marketing messages.
They help you uncover the following: The buying process. Customer profiles help you understand how different types of customers decide whether or not to buy from you. It also tells you what factors affect their decision-making process. For example, if a customer is looking for a new car, they may first research different brands and models. From there before they narrow down their choices based on features such as horsepower and fuel economy.
They will then visit your dealership in person to take test drives with each model before deciding which one meets their needs best. By understanding this process in detail, it’s easier for sales associates to anticipate questions customers will ask during the buying journey. E.g., “How much horsepower do I need?”, which helps them provide better service throughout the entire experience.
The buyer’s journey with a CDP
The customer journey (or buyer’s journey). A buyer’s journey describes all of the steps involved in buying something from a webshop. It tracks everything from researching products online to making purchases at physical locations such as stores or websites.
Customer profiles help determine who exactly is buying from us—and whether any groups are underrepresented among our current clientele. What motivates those buyers? Each unique group has its own motivation for purchasing from us. Knowing these motivations helps you tailor marketing messages specifically toward them.
Single Customer view with Custimy
Companies being able to understand each and every customer on such a detailed level is quite a new thing in e-commerce. However, this has already been embraced by customers. This means that they now expect more personalized experiences than ever before. They expect your webshop to know them as well as their local hairdresser or baker. And they expect you provide them with a personalized one-to-one experience wherever they interact with you.
In fact, 71% of consumers feel frustrated when a shopping experience is impersonal.
This naturally leads to a whole new set of challenges.
Custimy’s CDP can help solve this new challenge in multiple ways with “Single Customer View”.
With an e-commerce CDP like the one from Custimy, you will have access to ways to solve that. We call it the “Single Customer View”. It provides you with unique insights on a 1:1 customer level. You can use it to find look-a-like personas and enrich your advertisement to look-alike audiences.
- Understand customers on a deeper 1:1 level, and target them based on behavioral insights such as buying patterns, preferences, sizes, designs, preferred communication methods, and attribution functions.
- Improve the Customer Lifetime Value (CLV) by giving your customers exactly what they want. Improve their loyalty through a comfortable, high-quality, and personalized customer experience.
- Identify whether your customer is profitable through insights and KPIs such as total spent, predicted CLV, return rate, propensity to buy, probability of churn, and more.
- Use your insights to understand how your customers prefer to communicate. Identify the best ways, times, channels, and methods for communicating based on the highest engagement rates.
- Understand the habits and preferred products of your most valuable customers through insights into their behavior and preferences, and segment customers most likely to buy.
Working with customer profile data with a CDP
You’re now prepared to build out your customer profiles using the data in a CDP. You’re one step closer to mastering customer segmentation and discovering your ideal customer profile! With it, you can communicate better, more effectively, and in a way that drives not only revenue but also profitability.