During internal & external conversations on Customer Data Platform, one question pops up almost every time – “Is a CDP investment worth it?”. Well, the answer to this question is always a calculated “of course”.
With the ever changing economic dynamics & customer expectations, it has to be a priority for brands to not just unify customer information into a profile but also to make this profile extremely actionable based on TRUST & INSIGHTS.
The right combination of unification, intelligent calculation & activation creates the bedrock of data-driven customer engagement & helps garner a favourable limbic response from the end consumers. Ultimately, this positive mindshare leads to expanding marketshare thereby stabilizing existing & opening new revenue generating avenues.
This positive mind-space forms the basis of establishing the coveted “Circular Business Model”. It is right to say that a Trust & Consent Driven Customer Data Platform forms the building block to gain a customer’s positive mind space which in turn opens doors for sustainable circular economy.
I agree that a good CDP cannot, by itself, result in creating a good circular business model. However, it can help a business unearth the vital customer formula – a combination of customer behaviour, usage patterns, perceptions, journeys, across all touch points – to solve the grand equation of continuous & closed-loop revenue generation.
Circular Business Economy is a complex equation to solve. A Customer Data Platform helps unravel the optimal customer formula that removes the complexity from the circular business equation.
For example, consider the following Industry Scenarios,
Automotive Industry – where Customer Data Platform can combine customer data and vehicle insights which in turn help lay the foundation for “Incentivising good car usage” which in turn helps in the following,
- Identify owners and cars who are most likely to encourage buy-back & reach out
- Monetize agreements, with vehicle marketplaces, with customer consent
- Enter & Sustain in Subscription Economy
- and more…
Consumer Products Industry – where CDP can help identify & create trust based rich customer profiles which in turn helps to
- Incentivise return of unused contents like packaging via relevant loyalty programs
- Uncover customer hotspots to streamline supply chain & promote data monetization with selling avenues / distribution centres
- Become an environment conscious brand by reaching out to right audiences at the right time through right channels to promote return of reusable components & reduction of wastage
In summary, it is essential to incorporate trust & consent in to a holistic customer profile. Trust builds comfort with customers and they get more open to sharing their data with brands. The more they share the more enriched the customer profiles become. This enrichment opens up innovative use cases and revenue / monetisation avenues which can promote a circular business model with near-continuous revenue generation. This is exactly why an investment in CDP is worth it and helps one to uncover creative revenue potentials.
Would love to hear your thoughts on this. Do you think CDP might be one of the central puzzle pieces when it comes to establishing circular business economies.
In the upcoming set of posts, we will explore the essential must-have features of a CDP and how SAP is positioned nicely to be the trend setter in Customer Data Platform space.