What Is a CDP? The Definitive Customer Data Platform Guide
Data is a company’s most valuable resource. As such, it’s driving business like never before. Companies that gather and control accurate customer data can explore targeted and effective marketing efforts. Thus, helping them position the right products in front of the right consumers. Customer Data Platforms (CDPs) are at the cutting edge of delivering the right messaging to the right customer, but what is a CDP?
A CDP operates behind the scenes, providing four key functions: data collection, customer profile unification, data segmentation, and data orchestration. Allowing marketing teams to end up with customer profiles that are both accurate and comprehensive. Which in turn, attracts customers and inspires them to buy.
Selling opportunities can be fleeting. Customers come and go. Therefore, marketing teams need access to their customer data, wherever it is stored, at the precise moment when it will be most helpful.
Having data available at your fingertips helps develop higher degrees of personalization. Additionally, this type of personalization drives engagement and helps drive customer loyalty. Lastly, this engagement inspires your customers to seek out the products presented by this level of data-driven marketing.
The real secret sauce is a CDP that integrates with your existing tech stack. A CDP can provide the right data to the right customer at the right time. The best CDP solutions can also provide broad integration. Your existing CRM or ERP platforms can stay in place, and customer support systems can perform better. Now that we better understand “what is a CDP,” let’s look at how it works.
What Does a CDP Do?
The most critical of the four key marketing and sales functions mentioned earlier are data segmentation and data orchestration.
Using customer data segmentation, marketing teams can examine specific groups of customer data. This detailed view helps them determine which customers are most likely to respond to a particular campaign. Additionally, it helps predict how likely they are to continue valuing your products. From there, marketing teams can choose the most effective distribution of the customer data sample set. This sample helps generate the most valuable results from data segmentation.
…And Why You Would Want One?
A CDP delivers these segmented marketing tests within a single framework. The resulting insights help determine the potential efficacy of particular marketing campaigns. They also inform any follow-up efforts. This information is a marketing gold mine. Marketing teams are constantly facing new and emerging challenges. A strategy that once worked several months ago may now suddenly fall flat. The targeted and personalized marketing messages a CDP can help deliver build value, generate business revenue, and ensure customer loyalty.
To further optimize marketing campaigns, teams can use their aggregated customer data for campaign orchestration. Marketing orchestration is a linear process within larger marketing efforts. Marketing teams examine the entire process: developing the campaign, executing it, and measuring its success through all channels.
Delivering a unified customer experience is critical regardless of how the customer interacts with your company. That experience must be seamless across all channels. While customers may not directly perceive this, they appreciate a seamless and smooth experience when doing business with a company. A seamless customer experience helps generate value, reduces wasted spending and effort, and secures customer loyalty.
Easing Marketing Complexity
These potentially complex steps in your marketing efforts are why deploying a CDP is critical to maximizing your marketing muscle. A CDP can aggregate customer data from virtually any source. Marketing teams no longer have to search multiple sources for the data they need. All customer data is delivered in one framework, making it easily accessible. Now, marketing teams can develop and execute the optimal marketing plans to drive success, value, and customer loyalty.