Customer data platform (CDP) is an underrated topic but poses high importance in the marketing and business sector. It is crucial to understand the proper characteristic of CDP to leverage the benefit in the business ecosystem.
Marketers gather a lot of data from CDP, which gives them proper control over deliverables, segmentation, and orchestration through appropriate integration methods. Even though CDP can be applied throughout the business, the IT or development firms reap the most rewards.
The marketer-managed system is designed to collect all sorts of data that can be compiled for single or multiple use cases. It is a lucrative opportunity for marketers to leverage data through CDP. CDP gives a single view of customer data to marketers. These data are built throughout the years and went through cuts and cleaning to be the perfect proxy. Getting unified profiles and customer choices is the best thing to have in hand if you want the marketing campaign to succeed.
Even though the COVID-19 tolled us pretty hard, online services thrived, and customer data continuously piled up. These customer data are not physically identifiable documents but works as average market demand document. So, there is no illegal portrait coming into play.
On the other hand, as the pandemic raised interest in different solutions, CDP giving out single view insight became the most efficient method. B2B-B2C platforms and marketers coming into play under single term sheets have become an exciting part of technological interaction.
Businesses need data, and what better way than to gain it from platforms offering similar values and services? We can easily define CDP as fragmented data to help find what hundreds of businesses are doing in terms of serving customers, finding what products are in demand, and improving implementation.
CDP can be found in simple software applications making marketing and customer service a seamless experience. CDP can bring anonymous customer data together in view with CRM. The term CDP is relatively new, and according to our research, the name came in 2013 from David Raab, the CDPI founder. CDPI developed a RealCDP™ certification program that outlines five significant capabilities.
Unfortunately, many think of CDP as another term for CRM, DMP, or marketing automation, which it’s not. In other words, orchestration, segmentation, and out-of-the-box capabilities are done via CDP.
Properties of CDP:
- Has the ability to capture data in detail.
- Outsource data from both unknown and known sources.
- Has privacy features integrated, and no identifiable data is collected.
- Crating unified profiles for a single view.
- Ability to share data easily throughout services.
RSG Vendor evaluations showed CDP vendors are usefully grouped into categories. These categories are used for data sharing, creating mutual respect for the platform’s data and customer information.
CDP has several business scenarios for compliance methods. Advanced customer data management, predictive analysis, online personalisation, experience optimisation, outbound marketing campaign support, eCommerce recommendation, omnichannel and offline aggregation, real-time behavioural analysis, channel support, digital advertising, loyalty, and reward management are some of the primary ones.
Vendors differentiate the method from different points of view. In marketing standards, capabilities make the difference. According to MarTech, some of these capabilities are natively identifiable solutions with pre-built connectors to other systems. For a product to qualify in the CDP category, it must have a 360-degree view of the customer and the ability to gather data from multiple systems. The first, second, and third-party data collections are given a priory to unify system customer profiles.
As we said before, CDP is not CRM; CRM mainly stores truncational customer data. So, the ability to gather insight is not present. On the other hand, DMP is a cookie-based system and does not create persistent customer data. It only allows smaller sessions efficient for the customer. On the other hand, if we expect CDP as a personalisation tool, we have to look elsewhere as the native execution tools such as website personalisation is not present in the mechanism. If used correctly, CDP can be a great asset, but it doesn’t replace other core systems.