CDP technology is revolutionizing how brands cut costs and boost revenue. With the right customer data platform (CDP), you can slash customer acquisition costs, reduce churn, and streamline operations. This ultimately results in major savings and explosive growth.
Investing in new technologies in times of uncertainty can feel risky. Budgeting is typically thought of as cutting costs, not adding another expense to your balance sheet. But in the case of CDPs, adding another technology to your stack can actually be a valuable tool for cost savings.
Let’s look at some examples of how ActionIQ customers are achieving cost savings with CDP technology.
Slash Customer Acquisition Costs with CDP Technology
Customer acquisition has long been at the forefront of marketing priorities across industries. With acquisition costs rising faster every year and the approaching deprecation of third-party identifiers, brands are eager to discover smarter ways to leverage the available insights to navigate against soaring marketing costs. Here’s where CDP technology makes an enormous difference.
The key outcomes of importance for Bloomberg Media spanned across three pillars: media efficiency, increased conversions and future-proofing with first-party data.
We spoke to Grant Germano, Martech Strategy Lead at Bloomberg Media, to discuss strategies the media brand is putting into play to adapt to shifts in privacy, harness first-party data to power its acquisition efforts and future-proof customer experience against market shifts long-term. This begins with recruiting the right technology to hit the ground running.
According to Germano, “since implementing the CDP, [the brand] saw significant improvements in audience match rates, conversion rates and acquisition costs – all driven by more relevant and timely experiences powered by first-party data.”
“In the first six months of being live with our CDP, we saw audience sizes and match rates increase upwards of 500%,” Germano said. “We also saw Bloomberg subscriptions being driven from paid social increase over 59% while seeing the breakout of an annual versus monthly subscription increase by 53%.”
In addition to powering increased subscriber conversions, this CDP technology enabled the brand to optimize its marketing spend in the process. It was important to seek out a solution that would optimize targeting to reduce customer acquisition costs and enable expansion across numerous additional channels beyond just Facebook and Google Analytics.
It’s a long road ahead for Bloomberg with ambitious goals to continue harnessing customer data to forge deeper relationships with customers, deliver innovative offerings and grow its subscription business. But it’s impossible to create runway for sustainable growth and future-proof against an ever-changing market without implementing a bulletproof martech toolset.
Check out the full webinar featuring Bloomberg to learn more about how the brand is elevating its customer experience strategy to power subscriber growth while optimizing acquisition costs.
Retain More Customers with CDP Technology
It’s up to 25x more expensive to acquire new customers than retain existing ones. CDP technology helps you reduce churn by identifying at-risk customers and delivering personalized experiences. And on average, your current customers are 50% more likely to purchase new products from you compared to new new customers.
It’s crucial to build on your existing relationships to increase customer lifetime value and maximize the deals you’ve already closed, but if your customer churn rate is high, you’ll be too busy chasing new leads and replacing lost business. So how do you reduce churn?
Thankfully customer data platforms (CDP) are here to save the day. Not only can your CDP help you recognize churn risks, you can use it to take action on customer insights and deliver personalized experiences that inspire long-term loyalty.
One ActionIQ customer achieved a 35% lift in renewal rate by using their CDP’s lookalike modeling to predict churn risk and proactively engage customers.
Autodesk embarked on a major, multi-year journey from a licensing model to a subscription model. To ensure success, the company needed to create more direct relationships with its customers. While Autodesk had multiple systems it used to interact with customers, the data within them was stored in different places, making it difficult to harness all of it efficiently to create personalized, impactful experiences.
“With a subscription business model, if users don’t adopt the product early on, ultimately the retention and renewal rates will go down. Prior to implementing the CDP, our marketing systems had no clue about the actual status of onboarding our customers. We wanted to ensure that customers would adopt the product early on to keep retention and renewal rates high,” said Tzvetana Dudffy, Senior Director, Enterprise Engagement Platforms at Autodesk.
For example, the post-purchase campaigns employed by Autodesk took a one-size-fits-all approach. As a result, users and administrators received the same onboarding messages at the
same time, no matter where they stood in the adoption cycle.
Minimizing your customer churn rate means understanding who your customers are and tailoring your business strategy to suit their wants and needs. That requires a user-friendly customer data platform technology that empowers your business users to quickly and easily access customer data and activate it on all the channels where your customer can be found.
Streamline Operations with CDP Technology
CDP technology removes data bottlenecks between technical and business teams. With easy access to customer data, marketers can build audiences and orchestrate campaigns faster without IT help.
Shutterfly accelerated their time-to-market by 50% with a CDP, preventing $700k in revenue loss in one quarter. Their customer data platform empowered marketers to execute campaigns quickly and independently, so that their technical teams were no longer data gatekeepers.
Data democratization is about empowering both technical teams and business teams. And its foundation is self-service analytics, which enables everyone — regardless of technical knowledge — to gather and filter data for use without a bottleneck.
By using an audience segmentation solution that helps business teams self-serve audience discovery and activation, you can reduce operational costs and increase marketer efficiency — all while empowering customer-facing teams to enhance personalization.
Strategy: Optimize Technology Investments
|How You Do It
|What You Need
|Eliminate capability overlap and replace expensive legacy technologies – such as data management platforms and bloated email service providers – with agile and efficient CX solutions.
|– Reduce total cost of ownership of martech stack by 40%
– Save $1M+ due to sunsetting legacy technologies and services like a DMP
|Modular CX solutions that provide:
– Customer 360
– Audience segmentation
– Journey orchestration
– Real-time experiences
Strategy: Streamline Marketing Operations
|How You Do It
|What You Need
|Help business teams directly access customer data to reduce reliance on expensive IT resources and automate manual processes.
|– Reduce operational costs by 80%
– Increase marketer efficiency by 25%
|Audience segmentation solution that provides self-service audience discovery and activation
The right enterprise-grade CDP technology can solve for lagging operations by:
- Blending a high-performance analytical engine with a user-friendly UI that enables marketers to experiment with audience parameters and unlimited customer attributes, offering immediate visibility and flexibility with audiences and segments
- Speeding up brands’ time to market, boost conversion and retention rates, fuel long-term brand loyalty and enhance CLTV
- Providing self-service orchestration at scale, eliminating endless back-and-forths between marketing and IT and slow, manual data-gathering processes
- Letting business teams use AI to augment customer intelligence, model and predict customer behavior and ultimately make customer insights available to all
- Reducing IT resource-dependency by business teams
With ActionIQ’s CDP solution, enterprise companies can democratize audience segmentation and insight generation, helping marketers achieve their goals while reducing the burden on IT and data analytics teams.
Invest in CDP Technology for Savings and Growth
CDP technology enables you to slash acquisition costs, reduce churn, and streamline operations. The result is bottom-line savings and top-line growth driven by extraordinary customer experiences.
Get our Foolproof, Futureproof CDP RFP Guide to learn more about maximizing value with CDP technology.