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Tap the Potential of Your CDP Data to Discover the Most Valuable Customer Attributes

By Heather Anding, VP Strategic Consulting. The sheer volume of data available to marketers can be overwhelming. The challenge lies in discerning which data points will drive the most value and enhance the personalization and relevance of your digital programs. To pinpoint the most valuable customer profile attributes, it is crucial to start with clear, measurable marketing objectives. Only then can you recognize the key profile attributes that will inform your strategies and deliver significant value.

Understanding Customer Data Platform (CDP) Profile Data Layers

To effectively leverage data activation with a Customer Data Platform (CDP), marketers must understand the different layers of profile data available:

  1. Purchase Transaction Data

Key Metrics: Product details, purchase frequency, Average Order Value (AOV), Lifetime Value (LTV), margin, etc.

Usage: This data forms the foundation for Recency, Frequency, and Monetary (RFM) segmentation. It helps determine spending for customer retention and find valuable look-alikes. Additionally, it guides targeting for repeat purchases and testing personalized incentives based on the customer’s value to the brand.

  1. Engagement Data

Key Metrics: Channel opt-ins, site visit and interaction with brand messaging.

Usage: Understanding engagement data allows marketers to optimize channel decisions, ensuring they reach customers effectively. It helps capture attention and drive engagement by targeting customers when they are most receptive.

  1. Additional First-Party Data

Key Metrics: Call center interactions, online account profiles, interests, ratings, reviews, etc.

Usage: Progressive profiling, beyond purchases, enhances personalization efforts. This data increases the impact of targeted marketing strategies and drives greater performance.

  1. Demographic Data

Key Metrics: Age, income, gender, household makeup, marital status.

Usage: While some demographic data may be captured in your first-party data, enrichment solutions can provide additional insights. Apply this information to define audience segments and refine targeting approaches.

  1. Enrichment Data

Key Metrics: Latent and active signals, transaction and visit location intelligence, behavioral signals.

Usage: Enrichment solutions like the Zeta Data Cloud offer valuable insights beyond your brand’s data. This data can drive share-of-wallet strategies and competitor conquesting programs. Behavioral signals reveal customer interests and content consumption, enhancing the influence of personalized messaging.

Prioritizing Data for Activation with a CDP

Each layer of data plays a critical role in achieving marketing objectives. The key is to prioritize the data you need and ensure your CDP and Marketing Platform can manage and activate it effectively. Here are some strategies to consider:

Study Best Customers

Analyzing your top customers and their dominant interests helps personalize acquisition campaigns. Timing based on market signals can further inform activation strategies to enhance customer lifetime value.

Pre-Churn Retention Strategies

Using first-party and enrichment data can identify leading indicators of churn. This information allows you to develop pre-churn retention and engagement strategies to drive customer loyalty.

Behavioral Segmentation and Targeting

Leveraging behavioral data to segment your audience based on their interactions and engagement patterns provides deeper insights into customer preferences. This enables you to create highly relevant and personalized marketing campaigns that resonate with specific segments, driving higher engagement and conversion rates.

 In the end, knowing what your business needs are and identifying the right data to achieve those goals is paramount. With the endless stream of data available, a robust data collection and activation strategy fueled by a CDP has become a top priority for marketers aiming to deliver incremental impacts. By focusing on the most valuable customer profile attributes, you can elevate the personalization and relevance of your digital programs, driving enhanced customer lifetime value and long-term success.

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