Maximizing the Usage of a Loyalty Platform with a CDP

Businesses are constantly seeking ways to deepen their understanding of customers so that they can use this knowledge to deliver engaging, personalized experiences. One powerful tool that has emerged to meet this need is the Customer Data Platform (CDP), especially when working alongside a Loyalty Platform. But what exactly is a CDP, and how can they enhance a businesses' customer loyalty offering?

Understanding CDPs

The CDP category is broad, but most commonly, CDPs are deployed by organizations to serve as a centralized system that collects, organizes, and analyzes customer data from multiple touchpoints, such as websites, stores, mobile apps, CRM systems, and more. Ordinarily, their primary function is to create a unified view of each customer, allowing businesses to understand their behavior, preferences, and interactions across channels.

Typical functionality of a CDP can be grouped into the following pillars, but capability varies by vendor;

The Role of CDPs in Maximizing Loyalty

1. Unified Customer View: One of the key ways CDPs can enhance loyalty platforms is by providing a single, comprehensive view of each customer. Instead of fragmented data scattered across different systems, businesses can access a unified profile that includes past purchases, interactions, preferences, and more. Loyalty programs add significant value here because they allow businesses to collect a rich source of first-party data which enables them to paint a very accurate picture of how that customer behaves with that retailer. By integrating this data collected within a loyalty platform to all the other customer data hosted within the CDP creates an incredibly detailed and actionable unified view of each customer.
2. Personalized Experiences: With the data in place to provide a complete understanding of each customer, businesses can leverage CDPs to execute highly personalized experiences via a loyalty platform. How does it work? Retailers can use their CDPs to create business rules to determine customer audiences. E.g.  If a customer spends $150 within an 8-week period, move them into the VIP audience. Once a customer enters this audience, the CDP can send a trigger to the loyalty platform in real-time, notifying them to take a pre-determined action. In this example, that action could be to assign the new VIP customer a host of new offers and rewards into their loyalty wallet. As soon as these entitlements are made available, the customer can be notified, delivering an engaging and personalized experience which rewards the customer at the exact moment that it matters most.
3. Data Activation: CDPs enable businesses to activate customer data in real-time, allowing for timely and relevant interactions with customers. For example, if a customer abandons their cart on a website, the CDP can trigger the loyalty platform to send a personalized offer to entice them to complete the purchase. Or for a truly omnichannel example, if a customer experiences a late kerbside pick-up, they can be added to a new audience by the CDP and issued an offer into their Wallet from the loyalty platform as a goodwill gesture.
4. Churn Prediction and Prevention: Another valuable capability of CDPs is their ability to predict and prevent customer churn. By analyzing customer behavior and engagement data, CDPs can identify signs of potential churn, such as decreased activity or engagement. Businesses can then proactively intervene with targeted offers or incentives such as 10% off if you shop this week loaded into their Wallet to re-engage at-risk customers and prevent them from leaving.

Challenges and Considerations

While CDPs offer powerful capabilities for enhancing loyalty platforms, there are also challenges to consider. Integrating CDPs with existing systems and workflows can be complex, requiring careful planning and coordination. But don’t worry, we have a blog coming out soon with top tips when integrating to a CDP. Additionally, ensuring data privacy and compliance is essential when working with sensitive customer information.

Conclusion

In summary, loyalty platforms and CDPs often work hand in hand, enabling businesses to gain comprehensive insights into their customers. This new understanding, combined with the dual execution capabilities of these tools, empowers businesses to deliver highly personalized experiences to create more meaningful interactions to ultimately drive increased customer loyalty and revenue.

Contact us today to begin creating personalized customer experiences.