What's a Customer Database Platform?

What exactly is meant by the term "Customer Data Platform"?

A customer data platform, often known as a CDP, is an effective solution that assists dealerships in consolidating and managing customer data obtained from a variety of different sources. You may acquire a comprehensive perspective of your consumers, provide more tailored shopping experiences, and enhance your marketing with the help of a customer data platform (CDP), all of which will help your dealership's bottom line.

Why is it necessary for my dealership to have a CDP?

A CDP is a crucial tool for dealerships who want to remain ahead of the competition and maintain a focus on the client as customer-centricity becomes increasingly critical for businesses all over the world. You are able to create the individualized, pertinent experiences that generate customer loyalty and drive growth when you leverage the insights and capabilities of a customer data platform (CDP).

Features for Your Dealership's CDP Partner Integrations That Are an Absolute Must-Have:

Your Customer Data Platform (CDP) has to have integration capabilities for the various data sources that are currently in use at your dealership in order to perform at its optimal level and offer you with data that is both accurate and up to date.

A complete image of your clients and their interactions with your dealership may be created using a CDP if it is able to quickly combine data from a variety of sources, including as customer relationship management (CRM) systems, dealer management systems (DMS), and web analytics tools. A better statement would be that your CDP shouldn't stand in the way of your growth; rather, it should lean into it. Strong CDPs have open application programming interfaces (APIs), which provide you the ability to "swap out" data sources. This allows your dealership to remain flexible and expandable. In this approach, your CDP will be able to readily adjust to the use of a new DMS or CRM if your dealership decides to use one.

Best: A really outstanding CDP will go one step further by finding possibilities in your data based on shifts in consumer behavior. This is the best way to use a CDP. After that, the CDP takes fast and automated action by adjusting the marketing and email campaigns for your dealership to reflect the change. This is essential to helping scale the expansion of your business. This degree of technological sophistication more closely resembles Customer Data and Experience Platforms (CDXP) than it does a conventional CDP.

Data Management & Governance:

If your dealership offers financing or leasing alternatives, then you are considered a financial institution by the FCC, and you are expected to comply with their data privacy rules. If your dealership does not offer financing or leasing options, then you are not a financial institution. Due to the fact that poor data governance makes your organization more vulnerable to data breaches and legal action, now is the ideal moment to make an investment in a CDP.

A good CDP will include powerful data management and governance capabilities, which will guarantee that the data you save about your customers is accurate, up to date, and safe.

Better: It's not enough for data to only be protected; it also has to be squeaky clean. Keep an eye out for technologies that offer capabilities like data cleansing and maintenance, as well as identity resolution.

Best: Your CDP needs to have the capacity to react to changes in order to handle data privacy and compliance in an appropriate manner. Your customer data platform has to be ready to immediately comply in the event that a customer or a lead decides they want their information erased or altered.

Personalization Capabilities: Keeping your existing customers happy should be a top priority for your dealership if you want to be able to weather any kind of change in the economy. Through the creation of exceptional one-to-one experiences for your clients, personalization may assist in increasing retention rates.

A customer data platform (CDP) will produce a 360-degree perspective of your consumers, allowing you to design tailored and targeted experiences for them.

Better: Some CDPs offer sophisticated personalization features, such as targeted marketing campaigns and online experiences that are based on the behavior and preferences of the client.

Best: An excellent customer data platform (CDP) or customer data and experience platform (CDXP) will have advanced segmentation capabilities that allow you to create or automate hyper-specific audiences based on specific behaviors or demographics. These capabilities will be in addition to personalization, which is the best feature. You may be able to give more tailored and relevant experiences to customers, which may increase conversions and strengthen customer loyalty.

Putting a Price on It: Factors to Consider in Cost and Pricing

Purchasing a CDP is a long-term investment that has the potential to generate considerable cost reductions for your dealership throughout the course of its ownership. In order to make an educated selection that is in line with both your financial plan and the objectives you have set for your company, it is essential to do a thorough analysis of the prices and the various pricing possibilities. Take into consideration the following important factors:

Costs Paid One Time as Opposed to Those Paid Monthly Some CDPs may provide one-time licensing costs, while others may offer pricing based on a monthly subscription. Think about which alternative meets the requirements of your dealership on the most economical level. It is essential to be aware that subscription pricing models often offer you access to newly released features as soon as they become available, which means that the quality of your program improves over time.

Costs of Customization and Implementation Some content delivery platforms (CDPs) include customization and implementation packages that might assist you in getting up and operating more rapidly and efficiently. Be sure to adjust your spending plan to account for any additional expenses that may be incurred as a result of purchasing these bundles.

Up and Running: The Role of Technical Support Throughout the Course of CDP Implementation

It could appear as though putting in place and configuring a CDP is an insurmountable undertaking, but in reality, if you have the correct supplier on your team, getting the software up and running should be a straightforward and trouble-free procedure. When investigating CDPs for your dealership, be sure to take into consideration the process of getting them set up. You run the risk of missing out on important features that are included in the CDP and that may assist elevate your dealership if you do not have the correct setup and training.

When choosing a CDP supplier for your dealership, here are five questions you should inquire about:

• During the process of setting up the CDP, what kind of help is provided by the company?
• What kinds of tools and instructional materials are made available by the organization to ensure that my staff is able to make the most of the CDP?
• How long does the process of setting up the CDP take, and what phases are included in the process?
• During the course of the installation, would I have access to a support staff that I can get in touch with?
• After the initial CDP configuration has been finished, will the firm continue to provide support for the CDP?
• You should be able to establish whether or not the supplier you are considering is a good fit for your dealership by analyzing the responses to these questions.

Support for Customers Is Always Here to Help

If your dealership has in the past encountered bad customer service from vendors, you realize how important it is to select a partner that appreciates your requirements and places them at the forefront of their priorities. It is essential to provide first-rate support and service to customers if you want your dealership to derive the maximum benefit from the CDP that you select. Be careful to explore the support options provided by the CDP provider you choose, as well as their availability for you as a client, and how they communicate and respond to incoming requests before making a final decision (email, phone, live chat support, etc.). You could also consider reading reviews left by previous customers and talking to people working in related fields to find out what they think of their CDP supplier. There are times when those individuals who have had past, hands-on experience with the organization and are able to share insights based on that expertise are the finest sources of knowledge.

Sign Me Up!

If you're a forward-thinking auto dealer who has to deal with disconnected data, you probably have direct experience with the difficulties that come with attempting to efficiently handle and exploit consumer data. You may conquer these obstacles with the assistance of a customer data platform (CDP), which will also help your company achieve greater outcomes.

When deciding whether or not to use a CDP, it is important to carefully assess its primary characteristics, which may include customization, data action, data management, data management, interaction with marketing and sales tools, and partner integration. In addition to the cost and price alternatives, the process of deployment and onboarding, as well as customer support and service, should be taken into consideration.