CDP stands for customer data platform. CDPs provide a unified, comprehensive view of each customer by collecting data from multiple sources and tracking this data over time. A well-designed CDP gives the marketing team the right insights and the opportunity for immediate action.
More concisely, some promises of a customer data platform are:
- All your customer data in one place
- Personalized experiences across many touchpoints
- Real-time integration
- A 360° view of every customer
- Personalization at scale
Many companies have turned these promises into attractive and profitable projects. Let me explain in more detail how a CDP works and why it is worth to consider time and money into it.
Customer insight and understanding
Customer data platforms (CDP) provide a complete picture of the customer journey and accurately record customers' interactions with products, services, or brands so that they can be used for future marketing campaigns.
Essentially, a CDP is a customer database that is automatically updated as new data becomes available from a wide range of sources, mainly in-house data and sometimes third-party data.
CDPs can then structure this collected data into clear customer profiles, allowing organizations to identify and better engage with their customers, which can lead to high and long-term revenue.
Dynamic profile data
CDPs enable marketers not only to collect customer data, but also to create customer profiles, so that complete customer data resides in one central place. Such data includes basic contact details such as name, age, gender, location, social channel profiles, account information and job title.
Some of this data is often included in a company's CRM, but CDPs do not require manual entry and go a step further by also including data about a customer's lifestyle, personality, hobbies, and family details.
Know and recognize your customer
Such data helps marketers analyse how customers interact with their business. You can collect data such as the product categories they browse, click-through rate (CTR) on emails, number of web pages visited, products or solutions bought and social media engagement.
All this data helps understand the customer's preferences and ensures a better, personalized experience throughout the customer journey. Motivating factors that can influence a customer's purchase decision, such as why they chose a product and what they dislike about it, can also be identified.