What is a Customer Data Platform (CDP)?
With today’s consumers looking for personalized experiences that speak directly to them, you need to find a way of setting yourself apart as an online brand. One way to do that is to make the most of your data. Using a Customer Data Platform (CDP), you can collect, sort, and benefit from a vast amount of relevant data, before using it to enhance your business and marketing strategy.
What is a Customer Data Platform (CDP)?
As the name suggests, a CDP is a software platform that combines all of your customer data. These can include their attributes, characteristics, and cross-channel relations with your company. By holding all of this material in a single location, a CDP lets you view a single customer profile in its entirety, across all channels. On top of that, it aggregates all the data for your entire consumer base.
What kind of data can a CDP collect?
In simplest terms, a CDP can collect all online data related to your customers. These can include demographics, financial data, cross-channel usage, purchase behavior, and even lifestyle and interest data. With external sources, you can even add factors like local weather predictions.
Features of a CDP
While there are a number of CDPs on the market, each with different options, there are some standard features you should expect from any Customer Data Platform:
Centralizing all your data sources: a CDP ingests and consolidates all the raw data across your offline and online sources, including cross-channel data.
Processing your data, making it useable: once collected, a CDP can automatically wrangle, or transform your data, making sure that it is available for use, no matter the user’s IT expertise level. Standard actions include cleaning and enriching data, removing any duplications, and standardizing attributes.
Creating a single customer view: a CDP lets you see your individual customers in a full 360-degree profile, with distinct profiles for each user.
Segmenting and synchronizing your data: following this, you can use a CDP to create specific real-time consumer segments, built around any number of attributes. Through synchronization, you can share the data across other applications as well.
Four Benefits of a CDP
After integrating a CDP, what can you expect to get out of it? Here are four benefits your company can expect if you adopt a Customer Data Platform:
Make data accessible to your team
By collecting all your data, consolidating it, and transforming it, a CDP can be a centralized hub of all your data. This means it can be accessible to everyone in your company, from your marketing team to your data analysts. This will enable your company to move on from the isolated and inaccessible data silos of the past. And, with data more accessible throughout your entire company, you will have the insight to make data-driven decisions that help you grow.
Upgrade your customer experience
With all this data, you can help give consumers what they expect, also known as personalization. Thanks to the insight you have with a 360-degree customer profile, and the ability to segment your audience into ever-more specific market segments, you can offer a customer an experience tailored to their exact needs and wants.
From reducing the time needed to transform and extrapolate data, to being part of an automated marketing system, a CDP can help you save time across the board, letting you work on what you need to.
In today’s world, data security is of the utmost importance. There is simply no alternative to strong security measures. With a CDP, you can respect user privacy and focus on zero- and first-party data, that which a customer gives their consent. A CDP can automatically manage this data in real-time, making sure you have permission to hold the data while collecting it ethically. This means using a CDP can help you deal with changing data requirements like the banning of third-party cookies, which is already affecting digital business across the globe. If the move to a cookie-less future is a concern for your company, read this article to find out more about the future of cookies and how CDP can help.
How can a CDP enhance your marketing strategy?
As we have shown, a CDP gives you the tools to use all the data you have available to optimize the customer experience. All the customer data you have can be collated into a 360-degree profile, letting you see what a customer wants. And with this data for all your prospects, you can create specific campaigns, targeting different segments.
Through predictive modeling, for example, the data can be transformed into valuable customer information. You can see the likelihood that a prospect will be sensitive to a product recommendation, and even the potential customer lifetime value that they offer you. And with that, you can target customers with the right messages at the right time. For example, you might see that some of your customers are predicted to spend more online. Then, you could send all of them a unique email campaign with a discount, pointing them in the direction of your website. This is one way in which you can use a CDP to increase revenue, while promoting customer loyalty and trust.
CDPs and Marketing Automation
When you have collected a large amount of data, marketing automation can help to optimize your marketing strategy. Together, they can be used to automate and optimize your marketing activities. Using a range of individual customer profiles, you can enhance the customer experience, offering a personalized customer journey: specific offers and recommendations, and even personalized emails on special occasions like birthdays.
Is my company ready for a CDP?
If your company works with large amounts of data from different sources and channels, you know how challenging it can be. Data can require hours to transform and analyze, and much of it can end up in inaccessible data siloes. With a Customer Data Platform, you make the most of all of your data. A CDP can simplify the data collection and analysis process, perfect for those without IT expertise, while optimizing your marketing strategy, making it ready for the future.
Curious about what a Customer Data Platform can bring to your company? CDP's automatically ingests the data from any internal and external channel, putting all your data in a single, central location. After this, it cleans the data, removing or repairing anything that is required automatically, so it is ready for your use. See what it can bring to your company and create smarter marketing moments.