The Customer Data Platform is an approach to data management that User data from a wide variety of sources and make them accessible. CDPs are playing an increasingly important role in online marketing. In the following, you will learn why you should also take a closer look at this topic.
Customer Data Platform at a glance
Customer Data Platforms are designed to make it possible, Link all data across all channels. The use of data across multiple channels is also known as a Cross-Channel Marketing known. The data includes both onsite and offsite data.
For example, you can choose from different sources like the Customer Relationship Management (CRM) or business intelligence (BI). To the Channels include for example Email marketing or Social media. The goal is thus a 360-degree view of your clientele. Existing individual data silos are to be dissolved and brought into line with each other.
A summary definition comes from the side of the Customer Data Platform Institutes. The CDP Institute and its founder David Raab regard Customer Data Platforms as software packages (packaged software) for creating a consistent and uniform customer database. Other systems should therefore be able to access them.
Building blocks of a CDP
To explain how it works, first consider the goal. It is about a Uniform address of your customers. This shall personalized and include all channels. To be taken into account is the Customer life cycle. Thus, on all devices an individual Customer Experience be possible.
According to the CDP Institute's definition, these properties and components are therefore important:
- Software package (in the sense of a complete prefabricated system).
- Creation of a unified and consistent database
- Access via all channels through other systems
The first point of a software system refers to a system that is technically capable of meeting all the requirements of a company.
The Establishment the CDP requires less profound expertise than about Data warehouses. This contributes to, Save time and effort. The costs and risks decrease. Users are typically marketing professionals, not IT professionals. While CDP maintenance also requires some knowledge, CDPs still give you, the user, more control over the system.
Goals of the Customer Data Platform
The consistent and uniform customer database is designed to give you a comprehensive view. You want to target each customer specifically. Therefore you are on Data from a wide variety of sources depended on. This captures the CDP, links them and stores them together. An additional advantage is the unique ID of the merged data. The data is unique and can be precisely assigned. This serves the User recognition.
On this basis, you can address your customers in a personalized way. This works across different channels and devices.
At Access by other systems the Customer Data Platform acts as middleware. It thus provides no replacement of already existing tools to data management. Instead it mediates between the data silos of the company. Therefore, external systems can access the data stored in the CDP. In this way, a Analysis or evaluation of customer interactions possible on the basis of the CDP. Ideally, in the CDP Interfaces for all conceivable marketing systems and channels available.
Differentiation from the Data Management Platform (DMP)
The Customer Data Platform serves a different purpose than the Data Management Platform (DMP). Likewise, the mode of operation differs. On the one hand, the DMP serves the purpose, Collect data and make it usable in networks. These data are available in Raw format before. They are mostly used in a Data warehouse collected, but are still unsorted.
The CDP on the other hand is a Management system. It works with already available customer data. The DMP works with Third party data. These are collected through multiple channels before third parties acquire them. The CDP uses First Party Data. These can be collected directly from the user.
Functionality and operation
At a glance, a Customer Data Platform fulfills at least the following Functions:
- Data collection and unification
- Segmentation of data and profiles
- Unification of the profiles
- Data Analysis
- Decisions and Predictions
- Data activation
The starting point is in the Data collection. First and foremost first party, but also second and third party data can be integrated. These must then be stored in a uniform and directly usable format. Ideally, this results in a unified data pool.
The function of the Segmentation serves the Identification of the target group. From the data types Customer segments derive. Subsequently, strategies for segmentation across multiple channels can be defined. It is in this marketing task that CDPs show their strength: It is about a Precise addressing of your customers. The classification is based on the Interests and characteristics of customersto address them with targeted messages.
At the Standardization of customer profiles is about the Merging customer profiles from different channels and data sources. This results in a uniform and approximate complete Customer Profile. Among other things, they capture customers' names, interests and behavior at a glance. Based on the customer lifecycle Address customers in a personalized way.
On the basis of this many and structured data, it is possible to Analyses in the future. The processed data in one place is also suitable for Predictions. In addition, segmented customer data can be used to derive patterns that allow predictions to be made about future behavior.
The subsequent usability of the data is carried out by using the Activate data. The valuable information from the large amount of data leads to concrete courses of action. The data activation includes the Transmission of insights to various marketing channels. This includes your own store system or website, Facebook or other social networks. Depending on the segments, the data can be used on different channels. The Data transmission is automated in the sense of the CDP.
Advantages and non-binding advice
Ideally, you will enjoy the Advantage of a precisely tailored customer approach in real time and on all channels. From email marketing to social media, reach customers where they are. The CDP Aggregates all data available throughout the company, unifies them and makes them usable for all your channels. Thereby it enables a precise targeting and personalized address of the target groups.
Learn how to use the Harnessing the power of a customer data platform. So do not hesitate to contact us. Our team of marketing experts will be happy to advise you comprehensively and without obligation.