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Proposition 24 demands four pillars for a ‘serious’ customer data platorm

The Drum 20 Nov 2020 11:00

Brands can offer a superior customer experience, nurturing anonymous users into known, loyal customers, with a serious customer data platform that prioritizes four key capabilities. Here’s what needs to be done according to Adrian Nash, head of strategy at SAP Customer Experience.

While the 2020 US election was anything but straightforward, voters in California were clear on one issue: they want better oversight on the use of customer data by businesses. Over 56% of voters elected to pass Proposition 24, which expands the state’s consumer data privacy laws, including provisions to allow consumers to direct businesses to not share their personal information. Globally, the issue has already been addressed, with the EU’s GDPR containing a “purpose limitation” principle stating: “The purpose for processing of personal data must be known and the individuals whose data you’re processing must be informed.”

Superior customer experience (CX) has long been understood as a driver of new revenue and business growth, but as behaviors evolved during Covid-19, brands have had to re-evaluate CX strategies. According to McKinsey, 75% of US customers have tried a new shopping behavior or purchasing touchpoint during the pandemic and almost 80% will continue with the behavior. With this rate of change, delivering personalized experiences that nurture anonymous users into known, loyal customers, is no small feat. There is only one way for brands to keep up: through data.

1. Connection

Providing this level of service across this growing number of channels requires a living, breathing, unified customer profile, and a single customer view. This view is the one-way ticket to maximizing relationships by providing richer insight and engagement, and it can only be achieved with a CDP.

Like in any relationship, it’s important to understand the other party. Today’s brands should look at customer data to ensure an understanding and adjust engagements accordingly to make that relationship stronger. Understanding through segmentation and KPIs that are calculated in real-time for relevant, personalized conversation journeys is key. A brand that can effectively – and responsibly – use data to understand customers on a granular level will be able to create even more customized communications, product recommendations, and offers.

3. Respect

Enterprises are realizing that CDPs can help elevate CX strategies and honor the purpose of customer data. CDPs serve as a paper trail for data, where brands can see where customer data comes from, which is especially important in terms of compliance and privacy regulations like the GDPR, Proposition 24 and the CCPA. Any serious CDP should gather valuable, permission-based data to drive more personalized experiences while protecting customers’ personal data, and enable customers to maintain control over their own data through an intuitive, self-service preference center.

We live in the age of the customer – so customer engagement should always be top priority. In Gartner’s report, The Four Attributes of Customer Engagement, researchers stress the importance of understanding customer engagement. Engaged customers are generally better brand advocates, are more loyal and are likely to spend more money on your brand.

Buoyed by the entry of traditional marketing clouds, the CDP – per Forrester – can no longer be shoehorned as a solution that “centralizes customer data from multiple sources and makes it available to systems of insight and engagement.”

Adrian Nash Is head of strategy, SAP Customer Experience

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