CRM + DMP = CDP: The perfect match

Why the pros of customer relationships are head over heels for behavioural data: it’s more than just a cookie thing

Just a few days before Valentine’s day, Pete walks into his local jewelry store. The jeweler recognises him right away. As it’s the beginning of February, he also understands that Pete is here to buy a gift for his wife Lucy. Last year, it was a white gold bracelet: Lucy’s favourite. Maybe this year he’ll get the matching necklace? By relying on what he remembers from his customer’s history, the jeweler knows exactly what piece to recommend.

Can the same outstanding level of customer intimacy be achieved when the only points of contact between an advertiser and their customers are digital… and a bit impersonal?

One of the claims of data marketing is to reach the same acute knowledge of clients that makes the best salespeople, but on a much wider scale and in-real-time: in other words, to do exactly what Pete’s local jeweler is doing, but with thousands of consumers.

But here’s the thing: in order to be a good salesperson, you first need to know who you’re talking to. Advertisers today have access to an unprecedented volume of data: surfing the web, clicking on a banner, looking up a keyword, reading a newsletter… All of these online behaviors generate data. A boon for marketers? Well, almost: this behavioural data, also called non-personally identifiable data, are hard to tie back to a physical person.
So are modern-day marketers doomed to talk to cookies instead of people?

We, at Numberly, don’t think so. We think that behavioural data, if it is gathered with the explicit consent of consumers, is the perfect match to customer relationship… and we’re telling you why.

 

Customer intimacy through CRM

Customer Relationship Management (or CRM), in a broad sense, is at the core of our expertise.

In order to manage their relationships with their clients, advertisers need to be able to talk to them directly. This is why we help them collect what we call nominative data: name, email or physical address (contact data) as well as the preferences they declare by filling in questionnaires. Let’s take Peter for instance, who’s still in search for the ideal piece of jewelry. In this scenario, he made a first purchase online a few years back. By entering his information to make the purchase, he has been added to the jeweler’s CRM database and has authorized him explicitly and freely to contact him to keep him updated of his news.

Just a few months later, the jeweler decides to send out a qualification form that would allow him to to better know his CRM database better. Peter receives an email inviting him to answer a few questions and constitute his personal jewelry wishlist. The jeweler thus learns the existence of Peter’s wife, Lucy, whose birthday is on March 17th, and who prefers white gold.

Thanks to this information, the email communications that Peter gets are personalized to his tastes: he never sees a piece of jewelry he has already purchases in an email, but all the products that are suggested to him are personalized according to his tastes. And just a few days before Lucy’s birthday, a surprise special promotion can go a long way…

Managing volatile data with DMP

Nominative data is crucial to follow-through on the customer relationship, but by relying solely on this, advertisers miss out on the added value brought by the volume and accuracy of behavioural data. A DMP, or Data Management Platform, is a database for behavioural data, stemming from browsing cookies. These volatile pieces of data are created when a new user visits the advertiser’s website, or a partner website if applicable. Through cookies, it becomes possible to know the behaviour of web users : those who have visited all the product pages for diamond-encrusted rings, those who have only spent a few seconds on the home page before surfing away, those who have added multiple products to their cart without ever checking out, those who have reacted positively to a Facebook display campaign. By that point, it is possible to build behavioural segments within the DMP, but is it possible to know if a loyal client lies behind a cookie?

CRM & DMP: a match made in heaven!

This is where things get really interesting: the cookies that are stored in the DMP can complement the prior knowledge that the advertisers had of their clients. Every new cookie is compared to the CRM database. Sometimes, it’s a match! Behind the indecisive cookie that has scrolled half-a-dozen times through the same product page for a white gold bracelet, lies Peter!

Just a few days later, Peter receives an email reminding him of why this gold bracelet is the right match. And as he’s a loyal customer, he’s offered a commercial gesture: the bracelet is engraved for free. Pete’s all set for the big day!

Matching and segmenting

On a wider scale, advertisers strive to offer customers the same personalized and individual experience all along the conversion funnel. The data that was collected whether behavioral (browsing the web, using an app, clicking on a banner) or nominative (answers to a questionnaire) are matched. It thus becomes possible to achieve a people-based vision that is free of the cookie-blinders: individual profiles appear more clearly as qualification becomes more precise.

This bridge between CRM and DMPs is what the market calls CDP, or Customer Data Platform : a data-base offering a complete vision of individual consumers and centralizing data. These Customer Data Platforms that allow marketers to better know their target along a wide array of criteria have been central to our expertise for years.

After reconciliation comes segmentation: what segments of customers or prospects share the same characteristics? The aim is to talk to each individual customer in a personalized and relevant way whatever the channel might be. When thus conducted, marketing strategies become useful to consumers: less repetitive and more accurate.

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