According to a recent survey conducted by Gartner, it was revealed that a significant misconception exists among sales and marketing leaders regarding the function of Customer Relationship Management (CRM) systems as Customer Data Platforms (CDPs). Surprisingly, 51% of marketers mistakenly believe that their CRM system also can serve as a CDP*, and only 58% of the Top Sales Leaders Rely on Customer Analytics¹. This points towards a common misunderstanding and application surrounding the role of CDPs as an enterprise solution.
CRM software has undoubtedly evolved into comprehensive data management platforms that encompass various areas such as marketing, sales, and service. However, in their attempt to become all-encompassing solutions for managing customer data and interactions across an organization, modern CRMs have lost their focus and become overly complex systems that fail to fully address the needs of their core users. Simply put, CRMs are attempting to do too much.
Organizations that rely solely on their CRM to fulfill more than basic data manipulation or sales cycle analytics must consider adopting a modern customer data strategy. Statistics paint a clear picture of the challenges faced by many CRM users:
- 60% of CRMs fail to meet expectations
- 51% of CRMs encounter significant data issues.
- Less than 40% of CRM customers utilize 90% of the features they have purchased.
How a CDP Adds Value
The value of customer data lies in how organizations can leverage it to gain crucial insights and drive strategic decision-making. By analyzing customer purchase behavior, businesses can achieve multiple benefits. First, it enables them to gain a deeper understanding of their customer base. This understanding helps in engaging more effectively with customers, leading to the creation of positive outcomes. Additionally, analyzing customer purchase behavior allows businesses to innovate products and services based on customer demand. Furthermore, it enables targeted marketing efforts towards potential buyers. Finally, it facilitates the streamlining of the sales process through automation and optimization.
The modern-day customer relationship management engine will be replaced by a dynamic, business-first customer data infrastructure that puts data and insights in the hands of decision-makers effortlessly and at-scale. This modern infrastructure will be automated and extensible, allowing the business to manage data for multiple use cases without involvement from a central team. This will allow the end-user to customize the system to fit the business problem at hand. A modern CDP will provide limitless orchestration and integrations, which will enable systems to interconnect. This will drive efficiency and integration between historically disconnected departments.
An Enterprise Wide Solution
A customer data strategy goes beyond isolated departments; it enables leaders in customer experience, product, sales, marketing, and operations to cultivate stronger relationships with both existing and prospective customers while aligning business functions with wider organizational goals. It plays a vital role in deepening customer engagement and accelerating business growth in today’s highly competitive marketplace.
Staying Ahead of the Curve: What’s Next
In the business landscape of 2023, harnessing the power of customer data through a robust customer data strategy has become a fundamental requirement for successful organizations. Equipped with such a strategy and defined success metrics, organizations can promptly respond to customer desires and expectations, as well as proactively adapt to market changes.
At Perficient, we understand the value of harnessing customer data to maximize every customer interaction. With our extensive knowledge in customer data solutions and platforms, we are proud to be a comprehensive, global digital consultancy that is fully equipped to collaborate with you at every stage of your customer data journey. Our expertise spans a wide range of industries, and numerous top-tier companies have placed their trust in us to provide them with world-class data solution capabilities. With a proven track record of working alongside leading technology innovators, we help you stay ahead of the curve. If you’re seeking to unlock the full potential of your data and enhance your customer experiences, we invite you to reach out to us for more information.
*Gartner, Survey Analysis: Distilling Marketer Adoption, Views and Misperceptions of Customer Data Platforms, Figure 1, 19 November 2018
¹CSO Insights, Mckinsey quarterly 2016