# How CDPs help the enterprise ecommerce industry thrive Author Toby Yuen Sr. Customer Success Manager ## Table of contents - [The challenges of personalization for ecommerce companies](https://www.simon.ai/blog-posts/how-cdps-help-enterprise-ecommerce-industry-thrive#the-challenges-of-personalization-for-ecommerce-companies) - [How CDPs help enterprise ecommerce brands thrive](https://www.simon.ai/blog-posts/how-cdps-help-enterprise-ecommerce-industry-thrive#how-cdps-help-enterprise-ecommerce-brands-thrive) - [A customer story: RCI](https://www.simon.ai/blog-posts/how-cdps-help-enterprise-ecommerce-industry-thrive#a-customer-story-rci) - [Conclusion](https://www.simon.ai/blog-posts/how-cdps-help-enterprise-ecommerce-industry-thrive#conclusion) New and seasoned marketers know that “personalization” is not just another trend. It’s become a key component of ecommerce marketing strategies so brands can maintain their competitive edge. More than half (61%) of executives recently noted that personalizing the customer experience is a high priority for their brand. Executives aren’t claiming its importance for no reason, either – 76% of consumers indicate they are more inclined to purchase from brands that personalize, and these consumers spend 37% more with those brands. Personalization is here to stay. Studies have shown personalization can reduce customer acquisition costs by up to 50%, lift revenue by 5-15%, and increase marketing ROI by 10-30%. ## **The challenges of personalization for ecommerce companies** As personalization continues to prove its value, it also presents challenges for enterprise ecommerce businesses. These challenges can lead to missed opportunities for increased customer engagement and loyalty, ultimately affecting revenue. In a 2024 report by Deloitte, only 43% of surveyed consumers acknowledged that their online shopping experience was personalized, contrasting with 61% of brands that reported personalizing their marketing campaigns. This disconnect between ecommerce businesses and their consumers often stems from: **Data silos:** For ecommerce businesses, data often resides in various systems. As a result, marketing teams struggle to analyze and fully understand customer behavior, preferences, and purchase history. **Fragmented customer profiles:** Customer data can also be inconsistent and incomplete, leading to inaccurate profiles that hinder personalization efforts. **Lack of actionable Insights:** Without the ability to translate this information into meaningful actions, its value diminishes, resulting in generic and impersonal interactions. **Data governance & security:** Enterprise businesses must navigate strict data governance and security requirements. Compliance with regulations is essential to protecting customer data. CDPs address these challenges by ingesting data from scattered sources and marrying it into a customer 360, allowing marketers to take action on their customer data and identify the data gaps needed for better personalization. Additionally, most CDPs prioritize data governance and security requirements, ensuring customer data protection. ## **How CDPs help enterprise ecommerce brands thrive** CDPs address common challenges and can contribute to the success of ecommerce brands. A CDP can improve conversion rates, drive increased average order value, and foster better customer retention and loyalty. A CDP helps larger organizations with: - **Managing complex data ecosystems** that include numerous sources and integrations. - **Achieving a customer 360 view** by consolidating disparate customer data, creating a single customer profile. - **Enhancing segmentation capabilities** so the marketing team can leverage rich customer data to create granular audiences based on demographics, behavior, and purchase history. - **Personalization at scale**, such as custom product recommendations and targeted marketing campaigns. CDPs empower ecommerce marketing teams to orchestrate customer experiences and engage customers throughout the journey, creating a personalized shopping experience across channels. Firstly, ecommerce brands need to **acquire** new customers through brand awareness and engagement. Some CDPs can integrate with social media for brands to use first-party data. As customers evaluate products, ecommerce brands want to **engage** with them to enhance the pre-purchase experience through digital ads or timely messages. Personalization continues beyond purchase; during the **retention** phase, ecommerce brands focus on fostering loyalty, improving Customer Lifetime Value (CTLV). CDPs enable brands to implement strategies aimed at increasing repeat purchases, upselling, or cross-selling related products. ## **A customer story: RCI** Resort Condominium International, a Simon Data customer, saw notable results with their new website personalization strategy. Personalized website content increased bookings from their “not likely to book” segments by 4.5% and generated $13MM in revenue. ## **Conclusion** According to a 2022 study by IDC, the volume of data in the world is expected to double by 2026, emphasizing the importance of maximizing personalized experiences. A CDP offers necessary functionalities for ecommerce marketing teams to optimize customer data management and provide robust orchestration capabilities.