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Can a CDP and an MMH Deliver Personalized Service Just Like My Barista?

Ever wondered how your barista knows your coffee order before you even say a word? In this week's blog, we explore the magic of personalized service and how larger businesses can achieve it using Customer Data Platforms (CDPs) and Multichannel Marketing Hubs (MMHs).

Take your customer segmentation to the next level with our advanced guide

Why it matters:

Leveraging Customer Data Platforms (CDPs) and Multichannel Marketing Hubs (MMHs) empowers businesses to achieve personalized service at scale, mirroring the intimate customer experience provided by a familiar barista. Through real-time data analysis, Optimove’s CDP organizes customers into microsegments, predicting future value and optimizing campaigns through an MMH for tailored customer interactions, enhancing overall customer experience and loyalty.

Key Takeaways:

Emphasizing the value of daily customer interactions, the article showcases how businesses can leverage CDPs to gather and analyze data, creating ongoing, personalized interactions.

Optimove’s strategy involves micro-segmenting customers based on key data points to predict behaviors, offering businesses profound insights akin to a barista’s familiarity with regulars.

The role of MMHs is highlighted for optimizing campaigns in real-time, leveraging customer insights to enhance positive responses, and delivering tailored customer journeys.

Utilizing data analysis through Optimove’s CDP enables businesses to establish deep, personal connections with customers, overcoming virtual interaction challenges and ensuring exceptional customer experiences.

Every morning, I wake up groggy and stumble out the door of my apartment to get my first cup of coffee from the local shop around the corner. A few weeks ago, I walked into this coffee shop, and the barista gave me a friendly wave and pointed to the counter. Like magic, my favorite drink– a caramel latte– and a bag of chips I’d have with lunch awaited me. The barista rang me up at the register, asked me about my opinions regarding my favorite football team (the New York Giants, unfortunately), and then sent me on my way using my name to say goodbye! It was a two-minute, unforgettable exchange.  

Later, as the sweet caffeine began to kick in, I wondered: What sorcery did the barista use to know exactly what drink I was going to order? And how did he know that I was going to order a bag of chips to save for lunch?  

Let’s take a step back. My frequency of visits added up for the barista. He began to recognize me and took note of the patterns of my patronage. Before long, he knew me well enough to anticipate my needs and guarantee my experience in his coffee shop exceeded expectations. It wasn’t magic; it was his hard-earned collection of knowledge! 

The lesson here is not difficult to understand: the barista capitalized on daily interactions to provide impeccable service, increase revenue, and ensure customers’ loyalty. As customers return, the barista fine-tunes service to each customer.  

Guide to Advanced Customer Segmentation

Every business would love to give customers the kind of highly personalized attention the barista provided, but larger businesses with many locations, or online B2C businesses, cannot possibly interact with people at this same intimate level. So, what’s the alternative for large consumer-facing businesses? 

The alternative is collecting, analyzing, and acting on customer data in real time. A customer data platform (CDP) can collect a customer’s purchase history, frequency of purchases, and other significant indicators of a customer’s purchasing patterns. Each data point acts like a conversation with the customer, providing businesses with a continuing personal one-on-one with the customer. The business is empowered with deep insight to have the knowledge to provide an incredible customer experience.  

Optimove does just this. Using a CDP, we organize customers into different microsegments based on data points proven to be important to that person’s current relationship with the brand. These microsegments are used to predict future value, likelihood of churn, likelihood of reactivation, and other metrics useful for understanding a customer as well as my barista does me! These insights are run through a Multichannel Marketing Hub (MMH) which optimizes campaigns to have the greatest propensity to elicit a positive customer response. 

Though data is a powerful tool, it is impossible to fully represent a customer’s complex behavior using only ones and zeroes. However, as a customer provides more information, we can better anticipate their needs. For example, my barista didn’t know for sure that I would buy a bag of chips for lunch, but I told him the prior week prior that I crave salty snacks on Fridays. He used this information to make an educated guess. Optimove, too, capitalizes on data to anticipate and deliver on customers’ future needs. Since the beginning of time, the best way to sell goods has always been to ‘know your customers’ – especially face-to-face. Though the virtual era makes direct human connections a challenge, data analysis through Optimove brands grants businesses the ability to make deep personal connections with their customers.  

So, I hope to drag myself out of bed tomorrow, head to my local coffee shop, and be greeted with a caramel latte already waiting for me. If a particular wish of mine is granted, this won’t be the only business to exceed my expectations throughout the day. If another wish of mine is granted, the Giants will win the Super Bowl this year, but let’s stick with the first wish; that one is much more likely to come true. 

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Anthony Valentino

Anthony is a Senior Data Analyst at Optimove. Anthony lives in Long Island, NY with his family. He has a degree in Statistics and Mathematics Vassar College and has been rambling to people about math and statistical modeling for the last decade, even if they weren't interested.