CDP

A customer data platform (CDP) is a software system that collects and unifies customer data from various sources to create complete and consistent customer profiles.

Unlike other data management tools, a CDP is designed specifically for use by marketing teams.

This allows marketers to get a holistic view of customer behaviour and preferences, making it easier to personalize and segment campaigns.

How does a CDP work?

The operation of a CDP can be divided into several main phases:

Data collection:

A CDP collects data from a variety of sources, such as:

• Websites
  
• Mobile applications
  
• CRM systems
  
• Social media
• email marketing campaigns
• And other customer contact points
  

This information includes primary data (data that a company collects directly from its customers) and third-party data.

Data unification:

Once collected, this data will be unified to create unique customer profiles.

This involves identity resolution, i.e. combining data from different sources to ensure that all data from the same customer is linked to a single profile.

Segmentation:

With unified customer profiles, marketing teams can segment their audience more effectively.

CDPs allow segments to be created based on behaviors, demographics, purchase history, previous interactions and more.

Data activation:

Segmented data can be used to personalize marketing campaigns across multiple channels.

This includes digital advertising, email marketing, website content and mobile campaigns.

Analysis and reports:

Finally, a CDP provides analysis tools to measure the effectiveness of campaigns and gain insight into customer behavior.

This allows for continuous adjustments and optimization.

Advantages of using a CDP

Implementing a CDP in a marketing strategy offers numerous advantages:

• Comprehensive view of each customer: by unifying data from all sources, a CDP provides a complete and accurate view of each customer, facilitating personalization.
  
• More effective segmentation: with detailed customer profiles, marketing teams can create more accurate and relevant segments, increasing the effectiveness of campaigns.
  
• Advanced personalization: the ability to segment effectively allows messages and offers to be tailored to each customer, improving the customer experience and increasing conversion.
  
• Marketing optimization: with accurate data and analysis, marketing teams can make informed decisions and adjust their strategies in real time.
  

Differences between a CDP and other marketing tools

It’s important to differentiate a CDP from other marketing tools, such as CRMs and DMPs:

CRM (Customer Relationship Management):

CRM systems are designed to manage customer relationships and usually focus on sales and service interactions.

Although a CRM can store customer data, it is not optimized for unifying data from various sources and doesn’t offer the same segmentation and activation capabilities as a CDP.

DMP (Data Management Platform):

DMPs are mainly used to manage third-party data and are fundamental tools in programmatic advertising.

Unlike CDPs, DMPs don’t usually process personally identifiable information (PII) and focus on targeting and activating anonymous audiences.

Conclusion

In short, a customer data platform (CDP) is an indispensable tool for marketers looking to obtain a complete and unified view of their customers.

By collecting, unifying and activating data from various sources, a CDP enables advanced personalization, precise segmentation and continuous optimization of marketing campaigns.

With email marketing being one of the main beneficiaries, implementing a CDP can significantly transform the effectiveness of marketing strategies and the customer experience.