CDPs: What Are They and Should You Care About Them?

When you got into the multifamily space, you probably didn't think about how you're really in the business of collecting, analyzing, and talking to your team about data.

When it comes to marketing, lead acquisition, conversion, and all things multifamily, it’s all data all the time.

But what do you do with it??

How do you leverage it to the best of your ability to grow a profitable community?

Research shows that 80% of property managers find it challenging to access the data and insights they need.

If you fall into the 80%, CDPs can help make sense of the real value of your data and how to use it to improve everything from lead generation to conversions.

Here’s what to know and how to make CDPs work for you.

‍

What is a CDP?

CDP, otherwise known as a Customer Data Platform, collects and organizes first-party customer data from all of your many sources.

Here’s a look at some of the ways a CDP collects data from potential residents:

👉 Email list sign-ups

👉 Tour scheduled online

👉 Responding to a survey and including demographic data, including age and the current location of your lead

👉 Collecting feedback after a tour or a community event designed to attract leads

Once the CDP collects different data points and behavioral activity, it then combines and organizes all of that data into simplified customer profiles.

Your data is now unified in one place.

Beyond being more organized, using a CDP can dramatically improve your marketing by harnessing your data to better shape your campaigns.

(Source)

Adapt to a Cookie-Less World

In 2021, Google announced it would phase out third-party cookies by late 2023 (although that’s since been extended into 2024).

The problem?

Marketers have used third-party data for ages to track website traffic and target their ads, all with the help of cookies.

Once cookies are phased out, companies can no longer track and store the third-party data they collected.

It’s not just good practice but a matter of marketing survival to switch to zero-party data.

Zero-party data comes directly from prospective residents, making it more likely they'll be hyper-specific about their interests, preferences, and likes and dislikes.

Customer Data Platforms are the best move to make to get ready for a cookie-less world where data still reigns supreme.

Simplify the Leasing Process

Attracting and converting leads to leases can feel a little mysterious.

What works one month may not yield the same results the following season. 🤔

Instead of guessing at what’s working or poring over the data with your team to look for clues, CDPs analyze online behavior to make your marketing strategy feel more seamless and less like a chore.

At the same time, leveraging a CDP can also make your prospective residents’ lives easier.

When you tailor the apartment hunting experience to their behaviors and preferences, residents understand exactly what your community can do for them and if it’s a good fit or not.

Tip 💡: Targeting your marketing with the help of CDPs also helps you attract better lead quality, which in turn brings down your costs on everything from marketing to conversions.

Lean Into Predictive Maintenance

Let’s look at how a CDP impacts your current residents.

Maintenance is a big deal to residents and can make or take your word-of-mouth referrals and online reviews. 📣 📣 📣

Research shows that 31% of residents say maintenance is the reason residents leave a property, just behind rent prices.

Digging into your CDP can help your property managers stay a step ahead of maintenance trends.

Tip 💡: Now your team can look over the historical data to predict when a specific unit, lobby, or community pool needs a specific repair or touch-up.

Your proactive approach helps save time and keeps your residents happy by providing a seamless community experience.

Your community will also make a good impression when maintenance is addressed and your communal spaces are in top-notch shape.

Break Down Data Silos

Data silos aren’t unique to the multifamily industry, but no matter your business, they lead to missed opportunities.

When your data is stored in Google Analytics, your CRM, Excel spreadsheets, social media accounts, and in PPC ad reporting, you’re looking at everything in silos and trying to condense them into workable data.

(Source)

Instead, you can just streamline it all into a CDP.

The new hyly.ai is one place to start for an AI-powered marketing suite that drives renters from leads to leases to renewals.

This platform is uniquely situated in the market for its ability to unify over 20 prospect and resident experiences, such as pre-tour nurture, prospect, win back, and resident referrals.

Breaking down silos also helps you get more time back in your day.

According to research, data silos cause employees to lose 12 hours a week chasing data.

Imagine what your team could do with so many extra hours in the day.

If you love the idea of data but don’t enjoy figuring out how to make sense of it and pull it all together, you need a CDP.

Your competitors will inevitably make the switch to CDPs.

The results?

Truth 💣: Residents may not be able to put their finger on why, but they’ll notice which communities offer a frictionless apartment hunting and community experience and those that don’t.

‍