The top features and capabilities to look for in a Customer Data Platform (CDP)

Author

Lauren Saalmuller

Table of contents

The sheer volume of disorganized customer data pouring in these days can make you feel like you're sinking fast. Does this sound familiar?

Your sales and support teams rely on your CRM database OR on your data teams to access customer data
Website behavior and interactions are tracked separately
Loyalty programs generate yet another stream of customer info you can’t track

If this is the case and you’re feeling overwhelmed by these data silos, a customer data platform (CDP) might be your new best friend. CDPs pull all that fragmented customer information into one centralized powerhouse, transforming data chaos into powerful insights.

Whether you’re in the market for a CDP or are considering making a switch, let's look into the critical features you'll need to find the perfect CDP solution for your needs.

Navigating the CDP landscape

A CDP is designed to break down data silos and create a unified, 360-degree view of each customer. In short, it’s a platform that makes sense of and helps you activate your data.

Here's a preview of some key benefits of using a CDP:

Enhanced personalization: Offer laser-focused marketing tailored to individual preferences
Optimized customer journeys: Guide customers seamlessly through every interaction with your brand
Boosted ROI: make the most of your marketing dollars with targeted, data-driven campaigns

While most CDPs offer these benefits, picking the right one is about more than finding the one with every single bell and whistle. It's about aligning features with your unique business needs.

Consider these questions:

What are your main goals? (increased customer personalization, increased repeat sales, higher CLTV, or improved ROAS)
What are your existing systems? (marketing automation, CRM, loyalty programs, etc.)
What kind of customer data do you deal with? (purchase history, preferences, and/or demographic data)

Unveiling the must-have CDP features

In our experience, here are the fundamental features that make CDPs tick for customer marketing teams:

Data unification and identity resolution: When combined with a Cloud Data Platform like Snowflake, your CDP should be gobbling your unified, real-time data and customer info from multiple sources – then transforming it into a single, accurate customer profile. This means matching and cleaning names, addresses, and more, linking it all back to individuals, even if they interact using different devices.

Granular customer segmentation: A CDP is your secret weapon for understanding customer groups. Imagine you can easily carve up your audience by behavior ("recent purchasers"), demographics ("women 25-35"), or even engagement ("clicked on last three sale emails"). That translates to hyper-personalized promotions and offers.

Customer journey orchestration: This is about visualizing your customers' ideal paths – from visiting your website to subscribing to your newsletter to making a purchase. Once you understand the journey, a CDP can optimize each step.

Omnichannel marketing activation: Consistent messaging builds trust! Use your CDP to drive relevant, personalized experiences across every channel – email, social media, websites, and even SMS.

Predictive analytics and insights: CDPs have a crystal ball of sorts. Artificial Intelligence (AI) and machine learning (ML) help predict customer behavior, spot potential churn risks, and suggest things like the most promising products to recommend based on past purchases — thus, personalizing the customer experience even more.

Real-time data ingestion and activation: Time is money in marketing. Your CDP needs to process data immediately to trigger relevant actions. Abandoned shopping cart? Boom, reminder email (and maybe a special discount!) in a flash.

Robust reporting and visualization: This is about understanding what's working and what's not. Your CDP should make it simple to see how campaigns perform, and then use this data to shape your future customer marketing strategy.

Integrations and openness: Your marketing tech stack doesn't live in a bubble. Look for a CDP with extensive API access that links seamlessly to your existing CRM, email tools, and more. The smooth flow of data both upstream and downstream is key.

Scalability and security: As your business grows, your data will too. A robust CDP sits on top of a Cloud Data Platform so that it scales effortlessly, storing and managing that customer info securely.

Privacy compliance and data governance: We can't skip this! Choose a CDP that prioritizes data privacy and meets compliance standards (GDPR, CCPA, etc.).

Bonus features for advanced use cases

Ready to level up? Here are some extra features beyond the basics to consider when searching for a CDP that could unlock next-level insights.

Artificial Intelligence and Machine Learning (AI/ML): AI-powered CDPs can do incredible things. Imagine predictive models that automatically identify your most likely-to-convert prospects or customers on the verge of churning. A good CDP might even recommend the "next best action" to guide your interactions.

Attribution modeling: This is the secret sauce for proving marketing ROI. An advanced CDP can connect a customer's interactions across touchpoints, helping you see which is driving the most sales and conversions. Finally, some justification for that clever social media campaign!

Customer feedback management: Customer surveys, testimonials, and reviews give you a goldmine of data. A good CDP can pull in feedback from every source, revealing how your customers really feel and where you can improve the journey.

Conclusion

The world of CDPs is vast and diverse. There's no single “best” option, but there is the right option for your unique needs. Don't be blinded by bells and whistles you may not use right away.

Instead, you should:

Prioritize the essential features needed to tackle your biggest data challenges
Outline your current setup and goals to pinpoint the specific benefits a CDP will bring
Think about the future. Where do you want your marketing efforts to go, and how can a CDP help you get there?

Selecting a CDP is a worthwhile investment in data-driven decision-making and enhanced customer experience. When you find the perfect match, you'll have the foundation for marketing strategies that not only connect with your customers but deliver undeniable results.

Ready to continue your research? Check out these helpful resources:

Happy CDP hunting!

‍