What is a Customer Data Platform?

Introduction

Customer Data Platform (CDP) is a marketer-managed application that creates a unified consumer database that can be accessed by other systems. In essence, it is a solution that centralizes consumer information from all sources, combines this data into consumer profiles, and makes this information accessible to other programs for marketing campaigns, and customer experience, and customer service initiatives.

A CDP is a type of consumer database that aggregates all kinds of customer data, including phone numbers, the browsing behavior of website visitors, and transcripts of engagements with support agents over web chat and email. Thus, a CDP serves as a central repository for all consumer data. All consumer behaviors are linked to an exclusive identifier, whether the consumer is anonymous or identified.

Features of Customer Data Platforms

A CDP offers a web-based, marketer-friendly interface that facilitates the following activities:

Data Collection

A main feature of CDPs is the capability to collect individual-level, first-party consumer data from several sources in real time, without storage restrictions. Data sustains as long it is required for processing. The data collection should include first-party identifiers like device IDs or emails and attributes like demographic info.

Profile Unification

CDPs consolidate profiles at the individual level and link attributes to identities. This includes connecting several devices to one individual after they’ve been identified personally as well as deduplicating consumer records.

Segmentation

CDPs have the ability to produce and manage rule-based segments. Sophisticated segmentation functionalities may include propensity or automated segment discovery models.

Activation

CDPs can send segments as well as instructions for these segments to selected tools for implementation of advertising, mobile messaging, and email campaigns, and other channel or campaign activities. However, marketers still require execution capabilities for the final stage. Top CDPs include activation features like self-optimization and testing capabilities, dynamic creative optimization, and next-best recommendations.

Benefits of Customer Data Platforms

Single View of the Consumer

CDPs are designed to gather data from multiple sources, combine it to create a comprehensive overview of the consumer across channels and devices, and make this data accessible to other platforms. This view of the customer can be easily transferred to the systems and places your business requires.

Improves Operational Efficiency

It is resource-intensive and unreliable to integrate point applications and set up new tools and technologies because custom programs can be difficult to maintain. A CDP centralizes consumer data with turnkey integrations which saves the time spend on the integration task. In addition, you can set up business rules and audiences in a single location and apply them across multiple tools which saves huge volumes of duplicated work.

Effective Marketing and Customer Experience

Modern consumers are utilizing multiple devices and channels, and expect consistent buying experience on all of them. They don’t like see online ads of a product that they’ve bought in-store. A CDP provides enterprises a comprehensive view of buyer behavior that they can utilize to provide a uniform and high-quality customer experience on all channels and devices.

Democratization of Information

Customer data is invaluable for any company as the customer service, business intelligence, and marketing departments depend on getting reliable information for their operations. CDPs democratize access to and the capability to utilize consumer data across business units and consumer touch points.

Provides Agility

A CDP enables organizations to create and link a flexible technology collection that adapts to changing technology trends and consumer behavior. The CDP focuses on the data foundation and provides businesses with tools to gather data from all sources and utilize them on all channels to deliver superior consumer experiences.