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Best CDP use cases for eCommerce Loyalty

Updated: Apr 29, 2022

Learn how to leverage customer data platforms to identify loyal customers, understand their shopping behavior & optimize your marketing strategy

Whether you're just starting with a new eCommerce store or you've been in the game for a while with growth marketing professionals, implementing a customer data platform (CDP) can be a huge help when it comes to loyalty and customer retention. In this post, we'll take a look at some of the best CDP use cases for eCommerce stores, and we'll also explore how these platforms can help you keep your customers happy and coming back for more. So, if you're looking for ways to boost your business, read on!

Loyal customers are a big part of your business’ success. Create a loyalty or membership program and offer special discounts exclusively to them. Make them feel special, and they will surely keep coming back to you. 82% of consumers now belong to at least one loyalty program in the post-pandemic world.

Customer loyalty is the point of intersection for customer satisfaction, pleasant experiences, and total value. To get customers to come to visit your platform, you need retargeting so that they can keep buying from you and encourage them to promote their brands.

As a business owner or marketer, it’s important to create great products and make sure people are happy when they leave our store after purchasing an item.

The use cases covered below are

  1. Keyword refresh for Paid Search

  2. Cross-location loyalty programs

  3. Churn prediction and avoidance

Keyword Refresh for Paid Search

E-commerce marketers using paid search need to keep their keyword strategy fresh and based on targeted campaign spend for effective overall Ad spending. Utilizing unified customer profiles from a CDP, thousands of keywords are monitored and optimized on mobile and web searches linked to social media and Instagram, Facebook Stores.

The CDP captures the data associate keywords to customer profiles. This association of keywords to profile is critical to identifying segments and possibly customer personas. Measure the performance of keywords within target segments and personas, adjust keyword bid and spend based on the value.

Cross-location Loyalty Programs

Coming with a restaurant app background, chained franchises, and particularly restaurant chains with multiple locations, often need has a single loyalty program that can be used for rewards and points across them. This unified customer data allows the business to expand the kind of promotions to offer and substantially increase customer satisfaction with the brand.

The chain needed to manage profit loss and assign credit to locations to complete the offering. Each individual customer needs to be treated singularly in the solution, but there was a problem. The CRM is managed at each location. Not all were the same, and the information stayed at the location.

Despite the CRM being in different locations, the loyalty program and membership integration and clean, efficient customer interaction management were simple because of data standardization implemented early on. Meeting the challenge, the implementation team used a CDP to capture the data from each location, identified the loyalty customers based on criteria, and used deduping rules to clean up the transactions. In the end, the chain measured better overall customer experience as they are treated as a single person no matter where they go.

Churn prediction and avoidance

A subscription-based business relying on predictable revenue streams has executives that believe clients leave as they grow past the initial offering. And churn is very bad for subscription businesses B2B or B2C.

To apply a CDP solution to the problem, the first challenge was that user logs had missing tags and were not keeping up with the updates. The initial approach the team before used was impractical and only good at a one-off analysis. They needed more granular data.

The solution was to run the raw event log data and identify recurring key events despite the CRM being in different locations, the loyalty program, and membership integration. Clean, efficient customer interaction management was simple because of data standardization implemented early on in the log that is significant. Each key event was recorded against the individual customer profiles and evaluated the long-term impact of changes over time. With events tied to an individual customer, they established the ability to identify intent to leave and when to engage - two key events for subscriptions.

Overall, utilizing the CDP resulted in less reliance on engineering to set up the data capture, achieve a more accurate view of the stickiness of features. Marketing was able to gain an understanding of feature value by customer segment. With real-time analytics, companies can maintain churn rates at par or better than the industry average.

Technology like marketing automation and CDP fix problems that impede delivering a seamless buyer experience. Customer loyalty programs are key to keeping the cost to acquire down. The use cases covered below provide examples of how CDPs can transform your marketing team by solving these common issues in digital advertising, paid search management, cross-location loyalty program design, churn prediction, and avoidance strategies. If you’ve been struggling with any of them or would simply like more information on ways CDPs assist marketers across various departments at large enterprises around the world, let us know! We have specialists who can work one-on-one with you until you feel confident about using this powerful technology yourself.

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