CDP or Customer Data Platform definition is a technology that allows companies to manage data more effectively. Typically, this technology is used to improve and optimize troubleshooting related to customer data integration, labeling, and storage.
The Customer Data Platform or CDP is an application that combines all of a company’s customer data into one place. The app pulls information from a variety of sources, including social media, email, mobile apps, and company databases. The data obtained is then organized into a single platform, where the company team can access and act on it.
CDP also uses this data to create customer profiles or buyer personas. This will make it easier for companies to get to know customers and form appropriate marketing campaign strategies, including customer service and other matters related to customer experience.
The first step in how CDP works is connecting to a customer data source. They then verify and aggregate this data, and remove repetition (if any) to form a comprehensive customer profile. When they get new information, they will also update customer profiles as a form of consistent and up-to-date records.
Types of CDP
The customer data platform required by a business can vary. But generally, there are four types of CDP, namely CDP data, CDP analytics, CDP campaigns, and CDP delivery.
Data CDP is the most basic type of CDP. This customer data platform collects data from various sources and consolidates it into a single system. He can also enter it into other systems, although in limited numbers.
Analytics CDP requires all data that has the same functionality. As the name implies, the type of data needed is one that can be analyzed and can help automate some processes. Typically, this data consists of automated customer segmentation, predictive modeling, or customer journey mapping.
CDP campaigns are not much different from CDP analytics. Only, he can distinguish the special treatment of each customer. The platform’s customer data can also analyze market segments, while managing marketing materials, messages, and unique interactions for each user.
Delivery CDP is a type of CDP that includes all other CDP functions. The thing that makes it different as well as its advantages is that it is able to add a messaging system to reach customers.
Benefits of CDP for Business
The customer data platform works by centralizing customer data into a system. Because of this, CDP can provide many benefits to businesses implementing it, including:
Collecting Data Directly from Customers
There is a lot of customer-related data, but not all of it is accurate. Therefore, businesses need to collect data directly from the first party, namely the customer. In this case, CDP can help collect live customer data, such as views from site visitors or social media followers.
Have a More Insightful Analysis of Customer Data
Customer data analysis involves understanding customer behavior as demonstrated in their customer journey. Its purpose is to help make business decisions related to marketing, product development, or sales. The customer data analysis includes four main components consisting of data collection, sorting, storage, and analysis. All these components can be done easily through the use of CDP.
More Organized Customer Data Management
The customer data platform makes the process of obtaining, managing, and using customer data simpler and easier to perform. Companies don’t need to waste a lot of time and effort organizing huge amounts of customer data.
Avoiding Data Silos
A data silo is a collection of data that has limited access and not everyone can access it even if it comes from the same company. This is certainly inconvenient for some users, especially those who need access to customer information and data. In this case, CDP can help businesses avoid data silos. Where CDP does it is by bringing together customer and employee data. Thus, all data that has entered the system, can be accessed by everyone.
Improve Data Protection and Privacy
Generally, CDP has been equipped with settings and technologies that can provide protection and privacy of customer and company data.
Helping Businesses Get to Know Customers
If you want to implement a customer-centric marketing strategy, a business needs to know the customer first. This can be done through the use of CDP which functions to build a profile of each customer.
Increase Marketing Effort
Finally, the benefit of CDP is that it can enhance a company’s marketing efforts through multiple channels or media. Where CDP can unify the marketing efforts of various channels by providing accurate and consolidated data. CDP can also collect and organize the latest data so that it can be a reference for future marketing.
So now you know the Customer Data Platform Definition? It would be better for companies if they use CDP. CDP is a technology that allows companies to obtain the information needed to achieve certain goals, which are generally related to improving customer experience. CDP also provides comprehensive customer-related data. So, businesses can use it to develop the right strategy in developing the business.