CDP Introduction

 

The CDP or Customer Data Platform is one of the marketer's powerful tools.  It is basically designed for the marketing. It will help to collect the first-party customer data and build the customer experience. By bringing together multiple data sets and creating a single customer view.

CDP is responsible for the content. So highly personalized content that is delivered to the right person and right time.

 


 

Technical Definition 

A CDP is packaged software that created a persistent, unified customer database that is accessible to other systems. 

Break down the definition 

Packaged Software: Software managed internally by the organization. CDP require little support from the IT department.  So, marketing teams can plan and execute the personalized campaign based on user activity in an effective manner.

Creates a persistent, unified customer database: It provides a full 360-degree view of each customer activity from multiple data sources and all the information for the particular customer is tracked over time. So, each activity always updates for the specific user.

Accessible to other systems: Data stored in the CDP can be used by other systems for analysis and to manage customer interactions.

 

Identifying why your organization might need a CDP

  1.  You need to connect data collected by your organization that is currently soiled and underutilized.
  2. You need to get a 360-degree understanding of your customer and their customer journey.
  3.  Your organization wants to offer a more intuitive, personalized experience on your website and digital channels.
  4.  You need to reduce ad spending and create targeted multichannel advertising campaigns.
  5.  You need to combine online and offline data.
  6.  Your organization want to future-proof its data management process in compliance with GDPR and CCPA.
  7.  You want to cross-sell and up-sell products.

 

Key Feature

 

·       CDP should be capable of collecting data from multiple sources like CRM, Emails, and Servers and creating a unique profile for each user.

·       The CDP should have a web-based UI that allows marketers to segment customers into custom audiences.

·       The CDP should be accessible to external systems through email, mobile, web, and apps.

 

How Does A Customer Data Platform Work?

 

The CDP is composed of four parts

  1. Data Collection
  2. Profile Unification
  3. Segmentation
  4. Activation 

Data Collection 

The CDP collects the first-party data and customer behaviour data from multiple platforms and integrates with them.  The CDP is capable of storing data and reading it in real time.

1.                  Customer identifiers including cookies, emails, names and device ids

2.                  Attributes such as demographic information

3.                  Purchase history.

 

Types of Data Collected by CDP 

1.                Demographic

2.               Transactional

3.               Behavioural

 

Profile Unification 

This is the most important function of the CDP. It will help to consolidate the user profiles and connect different attributes based on specific identities.

 

1.                  Linking multiple devices to a single user once they have been identified.

2.                 Consolidating duplicate customer records if users logged in using another address.

 

Segmentation

 Segmentation is the next step of Data collection, Once data is captured from the different areas it is assigned to a segment. In the CDP user interface, marketers has different segment based on the data set like common activity, behaviour, or transactions.

 The following markers use the segment

1.               Personalization

2.              Filter audience

3.             Promote new products.

 

Decisioning 

The decision function within the CDP user rules and predictive analysis to make smart decisions about the best customer to the best content

    Example: Give the offer based on their purchase.

 

Activation 

The final step is the activation process the markers need an execution tool to activate the segment.

1.                     Providing recommendations to a customer

2.                     Taking real-time decisions based on customer data.