The Pitfalls of Operating Without a Customer Data Platform (CDP)

Challenge 2: 'My digital experience doesn't adapt to important offline user interactions'

Websites often fail to integrate offline interactions into the digital experience. For example, if a user interacts with a brand offline—such as making a call, a purchase in a physical store or attending an event—this interaction is rarely reflected in their online journey. As a result, the website continues to treat them as new visitors or in their 'old' state, providing redundant information or overlooking their evolved needs.

Users will face a disjointed experience if the website does not remember who they are or their previous loyalty towards your brand. This will in turn result in potential loss of repeat customers due to the lack of personalisation follow up.

Challenge 3: 'I can't cross-sell or up-sell to existing customers on my website, or by email'

Leveraging customer data can significantly enhance cross-selling and up-selling opportunities. However, without this data, businesses cannot identify customers' previous purchases or interests to recommend complementary products. For instance, if a customer already bought an orange, the website should suggest other available fruits, but this requires knowledge of their purchase history.

This will impact a client's business growth by losing revenue opportunities from not suggesting additional products or services that complement the previous purchase. Customers may miss out on discovering new products that they might find valuable, and there is a reduction in sales effectiveness and lower customer lifetime value. 

Challenge 4: 'I can't retain customers with a value-added website experience'

Acquiring new customers is important, but retaining existing ones is often more cost-effective and beneficial in the long term. A personalised and value added experience can significantly improve customer retention. However, without leveraging data, businesses cannot differentiate between new and returning customers, failing to offer the tailored experiences that keep customers coming back.

Businesses are in high competition with users to grab attention and provide experiences tailored to them. Customers who don't feel listened to when visiting a website may look for better website experiences elsewhere. Users now look to build deeper relationships with brands and will often choose businesses with more personalisation features to spend their money on.

Challenge 5: 'My website users gave me their data already but I keep asking for it again and again'

Repeatedly asking users for the same information can create frustration and disrupt the user experience. Customers expect brands to remember their preferences and past interactions. Constantly requesting data can make the interaction feel impersonal and inconvenient, driving users away.

This will also in turn damage the brands reputation and professionalism. It will also drive users away from completing any forms on the website or sharing any personal information in the future. 

Challenge 6: 'I am sending emails from another platform but the website doesn’t know who they are'

A disconnect between marketing automation platforms and the website leads to inconsistent user experiences. Users may receive personalised emails that address them by name and reference past interactions, but when they visit the website, they encounter a generic experience that doesn't acknowledge this context.