Personalized Marketing Can Increase Profits
The push for deeper personalization to improve customer experience is a top priority these days. However, highly targeted and deeply personalized marketing efforts rely on comprehensive customer data profiles. These help marketing teams customize and conduct effective campaigns. And, these profiles are fueled by data stored on a customer data platform (CDP).
A CDP brings data together in one spot. From there, it makes it immediately available for customer profiles segmentation and personalization. Additionally, it helps marketers deliver personalized messaging to the right customers at the right time through the right channels.
The value of using a CDP becomes quite evident in this Forrester Consulting Total Economic Impact study. The study examines how five companies used Simon Data’s CDP to improve their customer experience. They did this by giving marketers the data they need to run their campaigns. These interviews reveal how these companies use Simon’s CDP to achieve:
- Improved segmentation, personalization, and targeting
- Increased productivity and collaboration between teams
- Streamlined cross-channel experimentation and execution
A Closer Look at Personalized Marketing
Before starting with Simon’s CDP, these companies were dealing with data from multiple sources. As a result, they weren’t getting the most value out of that data. Therefore, many struggled to apply customer data to marketing campaigns. When marketers did try to work with customer data, they found manual segmentation was slow and imperfect.
After gathering their customer data with Simon’s CDP, the marketers at these five companies created personalized customer messaging across multiple channels. They found more personalized messages improved campaign performance and increased revenue. It also helped streamline marketing processes. Using the Simon CDP’s automation, marketing teams also reduced the effort required to execute their campaigns by 50% to 70%.
Positive Results, Increased Profits
The Forrester research also revealed the interviewed companies realized significant profits from personalized email marketing. After improving the personalization of their email campaigns, the five companies collectively brought in combined incremental earnings of $4.8 million.
The advanced segmentation power of the Simon CDP helped marketers personalize email messaging and delivery cadence to better connect with customers. This outcome supports the goal of delivering the right message to the right customer at the right time. The businesses interviewed by Forrester saw positive results across a variety of metrics, including:
- Better open rates (by 20%)
- Higher click-through rates (CTRs)
- Improved conversion rates
- Increased revenue generated by campaigns
Simon’s CDP helped these companies improve personalized email and targeting. Also, they increased digital return on advertising spend by 15%. Before using the CDP, digital ad spending was far less efficient. They found that the CDP’s improved segmentation and targeting helped them make better advertising investments. This improvement helped generate an additional $1.7 million over three years.
Several of the companies interviewed for the Forrester report were able to apply the CDP’s profile segmentation on their corporate websites. This implementation ensures personalization and consistency across every customer contact point. These engagement efforts led to an increase in revenue of $159,000.
Using the Simon CDP to automate personalized marketing campaigns also led to more efficient business workflows. Productivity increases for the marketing teams and their support engineers translated to a savings of $563,000 over three years. The engineering teams reported they could reduce their time developing personalized email marketing campaigns by 70%.
Improved Marketing Processes
The softer, unquantified benefits are equally impressive. The CDP’s experimental framework greatly simplified the process of developing cross-channel test campaigns for marketing teams. Additionally, these tests typically didn’t even require engineering support.
Simon’s CDP provides a single source of truth of customer data. These profiles enhance cross-team collaboration between all teams, including marketing, product development, data analysis, and CRM operations. Additionally, this interdepartmental collaboration also helps facilitate developing new customer experiences.
Customer data comes in from a variety of sources and formats. However, the Simon CDP can quickly ingest and unify data for flexible analysis. This unification also opens additional use cases for customer profile data. There were significant benefits, according to the businesses interviewed for this report. Previously, they were using solutions that required extensive engineering to ingest and orchestrate data successfully.
The companies’ response was overwhelmingly positive. “We never feel like there’s a limitation to what we can achieve,” said one retail manager interviewed for the study. The combined experiences of the companies Forrester surveyed show how a CDP can help inform marketing campaigns by more accurate data profiles.
Download this Forrester Consulting Total Economic Impact Study to read how access to customer data can drive effective personalized campaigns.