A customer data platform consists of a collection of applications that creates an integrated, consistent and automated customer database. Various information is extracted from multiple sources and cleaned, combined and then created into a single customer profile. This cleaned, consolidated and combined information is then made readily available to various other marketing processes. Thus, by using a Customer Data Platform, marketers are able to view their customer history, contact details, purchase history and sales history at the same time.
The Resulting Information Can Be Used In Any Number Of Applications, Including Business Analysis And Decision Making.
Sales reports are notoriously difficult to prepare and maintain. The time it takes to manually extract information from a variety of sources and organize it into a meaningful report are time consuming and tedious. This also limits the amount of information that can be shared with other departments or even outside the company, thereby limiting the potential effectiveness of the reports. Further, sales reports are typically prepared on a weekly or monthly basis, which means that sales figures are only updated when they are important to the company.
Tracking the activities of customers is crucial for the success of any business. Through a customer data platform, companies can easily track the orders, contact information and sales history of each customer. This information is then leveraged to generate timely sales reports and to build up a database of active customers, so that businesses can more effectively advertise to them. This enables businesses to determine which advertisements are working and which aren't, allowing them to fine tune their marketing strategies.
Sales reports provided through a platform can also be used to generate earnings forecasts and help businesses plan for the future. A common problem among businesses is determining the end-of-life scenario of their products. By having access to data about orders, trends and lifetime purchasing habits, business owners can predict how much revenue their products will generate in the long run. By taking this into account, they can plan for future product upgrades and revamps as well as adjust their pricing structures accordingly.
Customer data platforms provide a way for businesses to manage their sales process more effectively. By providing a central place to store and share customer information across multiple locations, a data warehouse allows them to provide personalized service to their customers. In addition to this, by allowing users to easily update their sales reports, it enables them to respond faster to their customers' needs and increase sales. Businesses that don't currently have a platform set up may want to consider outsourcing their customer database management, as well as the management of their sales process. Hiring a third party can help reduce costs and streamline processes, while increasing productivity.
A customer data platform also has the potential to reduce operational costs. Instead of maintaining several different types of software across several departments and locations, a single data management system can serve all necessary functions within one location. This means that employees won't have to waste time learning how to use each different piece of software, which can be time consuming and confusing for both staff and customers. Instead, they'll be able to go directly to their file folders to access the information that's required by each individual task.
The ease and convenience that a data warehouse provides for business owners also extends to the ability to automate processes across an entire organization. Since the data warehouse will typically store customer information across multiple locations and devices, business owners can create workflow procedures that will work for each location and device. Businesses can then make changes to workflow procedures whenever necessary, allowing them to keep their data as streamlined as possible.
Many business owners also find that having a data warehouse makes their lives easier, particularly when it comes to calculating costs. Calculating expenses can be a challenge, particularly if a business isn't sure of the exact amount of a certain expense. Businesses can input that information into a single system and get an instant, detailed cost estimate. If a business hasn't input the information into an exact form before, it can be easy to make mistakes in the costing process. With a data warehouse, all of the expenses are calculated exactly as they should be, reducing any chance for error and saving money on unexpected costs.