Nowadays, customer data has emerged as the new currency for numerous businesses. However, not everyone has mastered the art of fully capitalizing on their customer data platforms (CDP). Surprisingly, a mere 14 percent of businesses possess a comprehensive 360-degree view of their customers, as per 2022 research by Gartner. Despite this, a significant majority of customers (69%) express a willingness to share their data with companies, provided they receive something valuable in return. 

In this post, we’d like to take a closer look at what customer data platforms are and how they can open doors to new customers for countless companies. Furthermore, we’d like to showcase how one of our clients used CDP to automate data monetization and make the most out of each interaction with their customers. 

What are Customer Data Platforms? 

CDPs are software solutions that consolidate information from various tools, forming a unified and centralized customer database. This database encompasses data from all touchpoints and interactions with your product or service. The versatility of this database allows for segmentation in numerous ways, enabling the creation of highly personalized marketing campaigns. 

As a retail company, you can leverage CDPs to collect data from multiple touchpoints, such as social media platforms (Facebook, Twitter, Reddit), your company’s website, email, and any other place a customer might interact with your business. The CDP will gather all these data points, amalgamate them into a comprehensible and unified customer profile, and subsequently render that profile accessible to other systems that may require it — such as the Facebook ads platform, Pinterest, Reddit, or any other similar tools. 

Thanks to CDPs, your brand will be able to better leverage the power of segmentation in order to properly understand your audience and create more personalized marketing campaigns. You can also use it to explore customer data monetization and boost your brand awareness. 

What exactly is Customer Data Monetization? 

Businesses across various sectors, including retail, travel, and consumer goods, are leveraging this opportunity by collecting first-party data from customers and prospects. This data is utilized to enhance marketing strategies, deliver personalized content, optimize supply chain processes, and propel overall business growth. Yet, the potential for revenue generation extends beyond these realms. 

Projections indicate that the global CDP market size will soar from $2.15 billion in 2023 to an impressive $9.92 billion by 2030. Moreover, an estimated 69% of customers are inclined to share their data in exchange for improved deals. Despite this, only a limited 14% of businesses have achieved a comprehensive 360-degree view of their customers. 

Leveraging CDP for Data Monetization 

Business leaders are delving into the vast potential of data monetization through the adoption of a customer data platform (CDP). Companies that harness first-party data within a CDP can curate robust and pertinent datasets for internal use while also seizing revenue-generating opportunities by sharing these assets with external entities. According to Fortune Business Insights, the global CDP market size is anticipated to surge from $2.15 billion in 2023 to an impressive $9.92 billion by 2030, fueled by the expanding potential for generating new revenue streams. 

The act of sharing reliable and trusted first-party data with advertisers, publishers, and partners transforms customer data into lucrative business prospects. For instance, retailers leveraging a CDP to establish a comprehensive 360-degree view of their customers can utilize this data to establish retail media networks, offering consumer brands the opportunity to advertise their products for a fee. 

The accumulation of data from various sources, including point-of-sale transactions, internet traffic, and media impressions, can dramatically enhance your business’s ability to connect with customers through targeted campaigns and, more significantly, introduce the potential for developing new products and services. 

Today, customer acquisition has become paramount. Your CDP not only facilitates the personalization of marketing efforts to attract and retain customers but also opens up a new revenue stream, fostering future business growth. 

CDP and Data Monetization Example 

Let’s take a closer look at how one of our clients has capitalized on Customer Data Platforms to monetize their data. Our company has recently collaborated with an entertainment brand to develop a versatile Customer Data Platform (CDP) that effectively gathered information on customers’ purchase histories, point-of-sale (POS) transactions, and more, all while adhering to regulatory guidelines.  

Leveraging the CDP as a cornerstone, the company now provides this invaluable data to vendors seeking to create hyper-optimized campaigns rooted in real purchasing behaviors across a nationwide network of physical and digital outlets. 

This data loop enhances our client’s comprehension of customer interactions within the broader advertising and publishing landscape. Simultaneously, the company is introducing innovative, experience-driven marketing initiatives that integrate multiple related products. This approach not only saves time and resources but also streamlines decision-making in product and supply chain management through data-driven insights. 

This brand has evolved its conventional entertainment offerings into a lucrative and high-margin advertising platform. Basically, our team has managed to bring all data together in a compliant way, monetizing data for their own business using inventory optimization and targeted campaigns. 

Begin your Data Monetization Journey Now 

As a retail business, you can easily monetize first-party data. Our partners achieve success by maximizing the value derived from advertising, increasing foot traffic to stores, and innovating ways to craft customer-centric experiences. The revenue streams generated from these collaborative partnerships may even offset the initial investment in establishing the Customer Data Platform (CDP). 

Harness the power of your premium data with the implementation of a CDP. Contact us using the form below to learn more about how we can help your business succeed using CDPs.