Customer Data Platform

 A customer data platform (CDP) is a group of programs that work together to build an accessible, long-lasting customer database. To develop a single consumer profile, data is collected from various sources, cleaned up, and integrated. Other marketing systems are then given access to this structured data.  Gartner claims that a number of mature businesses, such as multichannel campaign management, tag management, and data integration, have given rise to consumer data platforms. 

CDPs are becoming increasingly popular as businesses realize the importance of collecting and analyzing customer data. In fact, according to a report by the CDP Institute, the global market for CDPs is expected to reach $1 billion by 2021.

So, what exactly does a CDP do? First and foremost, it collects data from various sources, including website tracking, email marketing, social media, and customer relationship management (CRM) systems. Once the data is collected, it is organized and standardized so that it can be easily analyzed.

Data Gathering

A CDP's capacity to gather data from various sources (both online and offline, with a range of forms and structures) and transform that inconsistent data into a uniform form is one of its key advantages. Among the data types a typical CDP need to support are:

• Customer events include browsing behavior, activities taken in an app or on a website, clicking on a banner, etc.
• Data from a POS terminal, including purchases, returns, and other transactional data.
• Consumer characteristics Age, gender, first purchase date, birthday, segmentation information, and consumer predictions.
• Data used to evaluate a campaign, including impressions, clicks, reach, and engagement.
• Customer-company interactions: verbatim survey results, focus group transcripts, NPS scores, data from chatbots, social media posts, and call center audio files.

Marketing Automation System

Whereas CDPs offer some of the capabilities of marketing systems and customer interaction platforms, they are fundamentally distinct from marketing automation systems in terms of their design and functioning. Tools for CDP are made to communicate with other systems. They save information from other systems that the automation or engagement tool does not. This is helpful for forecasting trends and making recommendations based on historical data. 

DMP vs. CDP

An anonymous web and digital data collection platform (DMP) is used. CDPs gather information that can be linked to a specific person. Using the intelligence, CDP users can deliver more individualized content and delivery. With the use of a DMP, advertisers may provide tailored ads at scale and leveraging anonymous customer data from third-party browser cookies.

One of the key features of a CDP is its ability to create unified customer profiles. This means that all of the data collected about a particular customer is consolidated into a single profile, which can include demographic information, purchase history, website behavior, and more. With this information, businesses can better understand their customers and tailor their marketing messages accordingly.

Another important feature of a CDP is its ability to create segments. With a CDP, businesses can create segments based on a variety of factors, such as demographics, purchase history, and behavior on the company's website. These segments can be used to create targeted marketing campaigns that are more likely to resonate with customers.

In addition to these features, many CDPs also offer analytics capabilities. This means that businesses can use the data collected by the CDP to gain insights into customer behavior and make data-driven decisions about their marketing and sales strategies.

Overall, a CDP is a powerful tool that can help businesses better understand their customers and make informed decisions about their marketing and sales strategies. With the global market for CDPs expected to reach $1 billion by 2021, it's clear that businesses are recognizing the value of these platforms and incorporating them into their operations.