Unlocking Customer Potential: The Power of Composable CDP in Delivering Exceptional Experiences

Imagine a customer walking into your store, and the salesperson instantly greets them by name, knows their recent purchase history, and can recommend the perfect product based on their preferences. Sounds fascinating, right?

In today's digital world, replicating this level of personalized attention across all touchpoints is no longer a dream, but a necessity for delivering exceptional customer experiences.

1 out of 4 customers are willing to pay extra for a better customer experience.

Customer Data Platform (CDP) have emerged as a game-changer in this pursuit. But a traditional CDP solution can often be rigid and struggle to keep up with the ever-evolving customer landscape. This is where the power of composable CDP comes in.

Composable CDP represents a new generation of customer data platform built on a flexible, modular foundation. By breaking down data silos and unifying customer data, they empower businesses to truly understand their customers and offer superior digital experience.

58% of marketers believe that CDP delivers significant value. Through the holistic customer view, composable CDPs enable businesses to deliver hyper-personalized experience that not only meet but exceed customer expectations, leading to increased satisfaction, loyalty, and ultimately, growth.

The customer experience challenge

Around 87% marketers admit that they lack a single, unified view of their customers. This lack of customer understanding due to fragmented data can lead to wasted time, missed opportunities, and subpar digital experience.

Enhancing customer engagement with personalized marketing strategies can be a significant challenge when data management is compromised and scattered across various systems.

For instance, a customer interacts with your brand through multiple channels – browsing products on your website, calling customer service with a question, and engaging with your social media posts. Each of these interactions generates valuable data about the customer's interests and behavior.

Unfortunately, with traditional data management practices, this data often resides in separate silos, like CRM systems, marketing automation platforms, and loyalty program databases.

This siloed data creates a blind spot for businesses, hindering their ability to understand the complete customer journey.

In a world where customers have countless choices, a single negative interaction can lead to churn, negative online reviews, and lost sales. Studies show that 52% of customers will switch to a company’s competitor after one bad experience.

The power of Composable CDP

Composable Customer Data Platform (CDP) represents a revolutionary approach to customer data management. Unlike traditional CDP with a monolithic architecture, composable CDP is built on a modular foundation. This means they consist of interchangeable components that can be easily integrated with existing data sources and marketing tools.

Here's how composable CDPs empower businesses to unlock the power of a unified customer view:

• Breaking down data silos: A composable CDP acts as a central hub, seamlessly connecting to various data sources (CRM, marketing automation, website analytics, etc.). This eliminates data silos and aggregates customer information from all touchpoints into a single platform.
• Real-time customer insights: By unifying data from multiple touchpoints in real-time, composable CDP provides businesses with a holistic view of customer behavior. This enables data-driven marketing rather than blind guesswork.
• Hyper-personalization: With a 360-degree view of each customer in a single place, composable CDPs empower businesses to deliver personalized customer experience across all channels. For example, sending targeted email promotions based on a customer's recent browsing history or recommending relevant products on your website based on past purchases.

Understand how to build an exceptional customer experience through an efficient CDP.

Industry use cases of Composable CDP

According to a recent survey by Gartner, only 14% of businesses have been able to achieve a 360-degree view of their customers. As per the report, the respondents who have achieved the view have called out CDP as their preferred technology to unify customer data.

The power of composable CDP extends far beyond simply unifying data. By providing a holistic customer view, it helps businesses across various industries to unlock customer potential and deliver exceptional digital experience. Let's explore some industry-specific use-cases:

Retail:

• Personalized product recommendations: Composable CDP can analyze a customer's purchase history, browsing behavior, and loyalty program data to suggest relevant products across different channels.
• Targeted promotions and upsells: By understanding customer segments, retailers can craft targeted promotions and upsells that resonate better, leading to increased sales and customer satisfaction.
• Omnichannel experience: A composable CDP can unify customer data from online stores, physical stores, and loyalty programs, enabling a seamless shopping experience regardless of the channel.

CPG (Consumer Packaged Goods):

• Targeted advertising: CPG companies can leverage composable CDP to understand customer demographics and buying habits. This allows for targeted advertising campaigns that reach the right audience with the right message.
• Campaign measurement and optimization: By tracking customer response to marketing campaign, CPG companies can measure their effectiveness and optimize them for better results.
• Loyalty program personalization: Composable CDP can personalize loyalty programs by offering targeted rewards and promotions based on individual customer preferences.

Ecommerce:

• Improved customer segmentation: Ecommerce businesses can create highly granular customer segments based on purchase behavior, demographics, and website interactions. This enables them to personalize marketing campaigns and product offerings more effectively.
• Reduced cart abandonment: By understanding why customers abandon carts, ecommerce businesses can use composable CDP to trigger targeted interventions with personalized offers or reminders to complete the purchase.
• Post-purchase engagement: Composable CDP can be used to send personalized post-purchase emails with recommendations for complementary products, loyalty program updates, or surveys to gather valuable customer feedback.

Travel and Hospitality:

• Personalized travel recommendations: Travel companies can use composable CDP to suggest personalized travel packages, flights, and accommodations based on a customer's past travel history and preferences.
• Dynamic pricing and promotions: Understanding customer segments allows travel and hospitality businesses to offer targeted promotions and adjust pricing strategies to maximize revenue.
• Improved customer service: Having a unified view of customer data enables travel and hospitality companies to provide more personalized and efficient customer service.

Understand whether to Build or Buy a CDP and the factors affecting the decision.

What Next?

According to a recent study by IDC, the data volume is expected to double by 2026. Businesses that embrace the power of composable CDP will be well-positioned to unlock customer potential, build stronger relationships, and achieve sustainable success in the years to come.

So, if you’re interested to unlock the potential of Composable CDP for your business then reach out us at marketing@altudo.co. Schedule your 1:1 no-obligation session and discuss with our experts about your CDP goals and requirements.

FAQs

• How is a Composable CDP different from a traditional CDP?

Traditional CDPs are often pre-built with a fixed set of features. A composable CDP, on the other hand, offer a modular approach where you can choose the components that best suit your needs. This allows for greater flexibility and customization compared to traditional CDPs.

• How to implement a Composable CDP?

Composable CDP can activate data insights by integrating with your existing Martech stack. The implementation complexity also depends on the specific components you choose, and the level of customization required. Altudo has global exposure of helping brands implement a CDP seamlessly without affecting on-going marketing operations.

• How does Composable CDP handle data governance?

Data governance is crucial for any CDP implementation. A composable CDP typically offer tools and functionalities to define data access controls, data lineage tracking, and data quality management. This ensures data security and compliance with regulations like GDPR and CCPA.