To continually grow your business, you need to bring in new customers, as well as keep your existing customers happy. Unfortunately, customer acquisition is expensive and tricky. Perhaps that’s why only 44% of companies focus primarily on acquiring new customers.
The challenges getting in the way of successful customer acquisition in 2023 include everything from difficulty capturing the attention of consumers to privacy and data security regulations. Businesses must tackle these challenges to survive and thrive over the long haul. With the right tools, like a customer data platform (CDP), overcoming these challenges and hitting your customer acquisition targets will be much easier.
Let’s explore some of the CDP use cases related to customer acquisition.
How CDP helps with customer acquisition
A customer data platform is a software solution that brings all your customer data together. Think about all the different systems you use to collect data about your customers, like your website analytics, email, customer relationship management (CRM) software, and social media accounts, to name a few.
Often, these systems don’t connect, creating data silos that prevent your team from seeing the whole picture. Customer data platforms eliminate those data silos by aggregating all your data into a centralized database. You’ll have your data from all sources together in one place, where each business department can use it. The CDP is a single source of truth about your customers, providing 360-degree customer views.
But how does aggregating all your first-party data in a CDP help with customer acquisition? All the data that the customer data platform brings together is key to improving your customer acquisition efforts. The software can help you determine which customers are most likely to be interested in your products or services, and even give you greater insights into your existing customers. Then, your team’s responsible for taking this invaluable information and stepping up your customer acquisition.
CDP use cases for customer acquisition
Even within customer acquisition, you may want to take advantage of several different CDP use cases. Here are some of the most significant customer acquisition use cases of customer data platforms:
Offer personalized customer experiences
Almost 75% of consumers expect companies to understand their specific needs and preferences. Personalization is no longer an extra component to consider offering customers — you must do it to stand out from your competitors. So how do you personalize?
The answer is using a CDP. With a customer data platform, you’ll have all the information you need to create personalized customer experiences. Data from your website about what a potential customer views and for how long, for example, can help you make the right offers to convert them.
Identify high-value customers
Without detailed data, you’re flying blind during your customer acquisition efforts. A customer data platform will help you gather and analyze the necessary data to determine which customers will most likely convert. You can also use this data to predict which customers will have the highest customer lifetime value (CLV), allowing you to send them specific offers.
This information provided by the customer data platform will ensure you make the most out of your customer acquisition opportunities. Since customer acquisition efforts typically have a low return on investment (ROI) compared to other efforts like customer retention, getting the most out of your campaigns is crucial.
Facilitate multi-channel marketing efforts
Gone are the days of advertising solely on the radio or in print. Today’s marketing campaigns are multi-channel efforts, spanning email, display ads, mobile ads, social media, and more.
Customer data platforms give you a complete, 360-degree view of your customers and potential customers, which is ideal for developing your multi-channel messaging. The CDP could tell you, for instance, that a certain prospect regularly opens marketing emails related to one of your products and has viewed that product on your website. With this information, you could send that customer a personalized offer for that product over email or through another channel.
Your CDP enables you to send the right messages to the right prospects through the right channels. With all this valuable information at your fingertips, you’ll have the best chance of closing sales and gaining new customers.
Stay in compliance with data privacy regulations
Data privacy is a top concern for consumers these days, and governments around the world are instituting regulations to protect that privacy. Businesses need to stay up-to-date with evolving regulations, which can be a significant challenge. Any data breaches or privacy violations will be costly and seriously hurt your customer acquisition efforts.
Luckily, using a customer data platform will help you protect your data and ensure compliance with all relevant regulations. Because CDPs create a central hub for your data, you have greater visibility and control over the data you collect.
Say a customer wants to know what data you are collecting on them, for instance. You can simply open up the customer data platform and view all the data related to that customer. Using a CDP enables more data transparency and control over data management. These platforms even integrate with data consent management software so you can see each customer’s data privacy preferences.
Using a customer data platform is useful across your business, especially when it comes to customer acquisition efforts. CDPs allow you to personalize early engagements with potential customers, predict which consumers have a high lifetime customer value, and facilitate multi-channel marketing campaigns.
If you aren’t already using a customer data platform, you’re missing out on the opportunity to boost your customer acquisition and your bottom line. Stay ahead of the competition with a CDP.
As an operational analytics platform, Live Earth consolidates your first-party customer data to eliminate troublesome data silos. The Live Earth platform doesn’t stop there, though. Through Live Earth, you’ll also have access to the industry’s most diversified, real-world dataset and advanced AI technology. The platform has everything you need to supercharge your customer acquisition and more. Contact us today to discuss how Live Earth can help your enterprise.