Why Customer Data Platforms are important to create unified customer profiles?

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New to marketing? Want to know about CDP? Confused between various tools like CDPs, DMPs, and CRMs? In need of an optimum CDP tool for use?


Here’s a thought!


In this article, we will explore the fascinating realm of Customer Data Platforms (CDPs). This newly re-defined technology caters to the need for a modern marketing strategy involving customer data at its core, serving various important marketing spheres.


Get ready then!


Let us understand every inch of the field that is CDP and explore how it settles among the top modern marketing tools.


Customer Data Platforms (CDPs): A Brief



What Are Customer Development Platforms (CDPs)?

                                                                                 What Are Customer Development Platforms (CDPs)?



Ever been on the lookout for a certain product online?


Your journey would most likely transpire with getting more and more personalized recommendations/Services as you go on providing data related to your needs for being at the market.


You switch through websites, Apps and then receive personalized advertisements on other interfaces like social media platforms (Instagram, Facebook, etc.) This enhances your overall experience and eases out the entire process not just for the Seller advertising but also the consumer consumption.


Ladies and Gentlemen, this is what briefly captures the concept of CDPs. Time to get to the technical side of it!



Let’s begin with the fundamentals.


Consumer Data Platforms, or CDPs, are powerful marketing tools made for gathering, organizing, and combining consumer data from many sources. They produce a thorough consumer profile that aids firms in better comprehending their clients.


A CDP does exactly what you may picture as having all the parts of a customer’s jigsaw in one location.


This technology allows businesses to pull in customer data from any channel, system, or data stream to build a unified customer profile. These tools usually include a customer database and automation, as well as management resources for multichannel campaigns, real-time customer interactions, and connected data.


A CDP combines all of that data in real-time for companies, allowing them to offer hyper-personalized experiences for customers.


One factor driving this trend is the increasing importance of customer experience, which is improved through timely data gathering, AI-assisted segmentation, and the personalization of interactions. At the same time, marketers are facing the gradual, but seemingly inevitable, extinction of third-party data as fuel for their marketing programs.


Therefore, businesses are looking to CDPs to bolster their first-party data and engage in privacy-compliant practices like sharing through data clean rooms.



Benefits of Using Customer Data Platforms


Customer Data Platforms enhance customer experience (CX) by combining various data types (structured, unstructured, online, and offline) for a consolidated perspective. They combine data from all customer touchpoints, including email, social media, loyalty programs, and in-store transactions, with data already present in other internal systems, like ERP, CRM, DMP, and others, to generate a continuously updated 360-degree perspective of the consumer.


Different departments can collaborate when they have the same perspective of the consumer since they can see who is dealing with a certain client or if there is no interaction at all. Businesses may communicate consistently and seamlessly engage customers by using CDPs.


A CDP enables a company to accurately target specific customers, tailor their experience, and forge enduring connections that increase retention rates. Revenue is also impacted by personalization. Marketers that have mastered personalization improve sales by 5 to 15 percent and marketing spending efficiency by 10 to 30 percent.


Data from CDPs is more thorough and current than data from other sources since it is collected directly from your consumers. Marketing initiatives are more successful, efficient, and cohesive when they are based on a complete, current picture of the consumer.


Last but not least, having a single platform of trustworthy, integrated consumer data empowers you to make smarter, data-driven decisions and could even spark the creation of new marketing initiatives.


So folks, as we have now established the base of our topics, we can further differentiate between CDPs and other similar technologies which will broaden our understanding as to why CDP is one the best tools a marketing strategist can encounter.



CDP vs CRM: Many People Get Confused


Alright, let’s break it down in simple terms!


Imagine CDP as the master of data, gathering information from various sources to create a full picture of each customer. It’s all about personalization and understanding customer behavior.


On the other hand, CRM is like the smooth operator of customer interactions. It helps manage communication, sales leads, and customer support, keeping everything organized and ensuring smooth customer relationships.


In a nutshell, CDP focuses on data unification and personalized experiences, while CRM is all about managing customer interactions and relationships. Both are essential and when used together, they form a dream team for top-notch customer engagement and satisfaction!



Customer Data Platform vs Data Management Platform


A Data Management Platform (DMP) is a technology used for collecting and analyzing anonymous user data from various sources to create audience segments for targeted advertising. It focuses on ad optimization and reaching specific audiences without identifying individual users.


Customer Data Platforms (CDPs), on the other hand, gather known customer data from multiple sources, creating detailed customer profiles for personalized experiences. CDPs are customer-centric, fostering better engagement, loyalty, and understanding of customer behavior.



Why Do Businesses Need Customer Data Platforms?


Today’s businesses communicate with their clients using a variety of platforms, including websites, mobile applications, social media, email, and more. The amount of relevant data generated by each of these touchpoints might be hard to manage. CDPs come to the rescue in this situation!


  • Data centralization: By acting as a single source of truth, a CDP collects all of your dispersed data. This allows you to say goodbye to misunderstanding and data silos.
  • Enhanced Customer Understanding: By examining consumer behavior and preferences, CDPs offer insightful data that can be used to create marketing efforts that are more specialized and focused.
  • Real-Time Data: You can access data via CDPs in real time, which enables you to react quickly to client demands and preferences.
  • Cross-Channel Consistency: CDPs make sure your communications are consistent across all platforms to provide customers with a smooth experience.
  • Data Collection: CDPs collect information from a range of sources, including social media, CRM systems, website interactions, purchase histories, and more. It resembles a data scavenger hunt!
  • Data Unification: The CDP employs its secret sauce to clean, standardize, and connect the data once it has been acquired, resulting in the creation of a unified customer profile. Consider it similar to assembling a jigsaw puzzle.
  • Data segmentation: CDPs divide up their clientele into groups according to their behavior, tastes, and demographics. Marketers may design targeted advertisements that are specific to each group thanks to segmentation.
  • Data Activation: Now for the enjoyable part! Businesses may leverage segmented data from CDPs to drive marketing efforts across a variety of channels. Like putting more gas in your marketing engine!


The Power of Personalization With CDPs


Modern marketing is all about personalization, and CDPs are every marketer’s secret weapon. They assist companies in providing tailored experiences in the following ways:


Customized Content: CDPs give advertisers the ability to customize content based on user preferences, ensuring that consumers only see the information that speaks to them.

Predictive suggestions: Through the analysis of historical behavior, CDPs can generate educated assumptions about the goods and services a client could be interested in, which results in effective suggestions.

Lifecycle Marketing: CDPs enable companies to design individualized customer journeys from the initial contact through follow-up involvement, encouraging long-term partnerships.


Businesses need to concentrate on client retention since, as we all know, recruiting new consumers can be expensive. CDPs can be quite helpful in this situation:


Churn Prediction: CDPs may predict customer churn by using past data to spot warning indicators and take proactive steps to keep key clients.

Re-Engagement Strategies: Companies may develop focused re-engagement efforts to win back inactive consumers with the aid of CDPs.


How To Integrate Customer Data Platforms?

You must first identify your goals and objectives before you can begin implementing a CDP.


What do you hope this integration will accomplish?


Do you want to raise conversion rates, increase client engagement, or improve their entire experience?


The trip of integration will go much more smoothly if you know where you’re going.


Let’s now discuss data sources. You must collect data from numerous sources because your CDP will serve as the central repository for all of your customer data. This includes all of your website, mobile apps, social media platforms, email marketing efforts, and even offline sources. The more information, the better! Keep in mind that poor data quality might lead to inaccurate and unreliable information because “garbage in, garbage out.”


Next, make sure your CDP can coexist peacefully with your current tech stack. Verify compatibility with your CRM, marketing automation programs, analytics software, and anything else that is essential to your marketing endeavors. Here, seamless integration is the key to success.


One, two, three tests, testing!


Run thorough tests before going live to make sure that data is moving between your systems as it should. Your marketing initiatives need to run smoothly; a bug causing havoc is the last thing you want.


Keep in mind that integration is a continuous process. The process of adjusting and optimizing is continuing. To make the most of your CDP, keep an eye on the data, track performance, and make improvements as necessary.


Celebrate when your CDP is fully operational and integrated. You now have a potent weapon available to you to boost your marketing initiatives and provide customized experiences that will wow your clients.


A CDP integration, then, is akin to joining the dots between your data sources and marketing objectives. Define your goals, collect information from diverse sources, check for compatibility, give data privacy top priority, and do thorough testing.


Once linked, your marketing plan will be superhuman, leaving your rivals in the dust. Cheers to integration!


Top 3 Customer Data Platforms Available





Insider - Customer Development Platforms

                                                                           Insider – Customer Development Platforms – Home Page


A cutting-edge consumer Data Platform (CDP) called Insider CDP enables organizations to fully utilize their consumer data. Marketers may consolidate and combine data from various sources, including websites, apps, and offline interactions, with the help of Insider CDP. Businesses may provide hyper-targeted experiences because of the platform’s strong features for consumer segmentation, customized marketing campaigns, and real-time analytics.


Insider CDP is a top option for companies looking to improve customer engagement, generate conversions, and maintain an edge in today’s cutthroat marketing environment thanks to its user-friendly UI and strong AI capabilities.







Bloomreach - CDP

                                                                                                Bloomreach – CDP Home Page


It’s not an “all-or-nothing” approach with Bloomreach; you may pick and choose whatever functionalities you wish to use. Bloomreach is a CDP plus marketing automation platform, but it may also function as a standalone CDP to give an existing technology stack a consistent source of customer data or to manage all marketing operations utilizing the additional campaign execution and analytics layers.


If you currently have a CDP, Bloomreach Engagement’s customer data engine can assist you in fully utilizing your data and maximizing the return on investment of your e-commerce marketing initiatives.







Segment Customer Development Platforms by Twilio

                                                                              Segment Customer Development Platforms by Twilio


Segment.io is a customer data platform (CDP) that allows marketers to create personalized advertising and customer journey experiences for consumers based on their behaviors and interactions with your organization. Segment, as a CDP, allows you to use your 1st party data (and potentially 2nd party data) easily by streamlining the collection and integration of your data and democratizing it across silos.







Optimove CDP Home Page

                                                                                                     Optimove CDP Home Page


Optimove implements a science-driven approach to planning, orchestrating, and optimizing a complete, hyper-personalized CRM Marketing plan. By combining predictive customer analytics, AI optimization technologies, and a multi-channel campaign orchestration engine, Optimove helps marketers deliver the right message via the right channel to every customer, every time. The result is customer-led journeys that increase customer engagement, retention, and lifetime value.


Names of some more used and known Customer data Platforms are FirstHive, Lytics, BlueConic, Totango, and  Emarsys. All of them specialize across various and specific dimensions of a great marketing strategy. They have their advantages and can be chosen considering certain goals for the firm that aims to use these in their work.





To sum up, Customer Data Platforms (CDPs) have become crucial tools for companies looking to succeed in the always-changing world of customer-centric marketing. Marketers now have an unmatched ability to create individualized and pertinent experiences that help them forge closer connections with their target audiences. This power comes from the ability to harness and make sense of massive amounts of customer data from various sources.


The bits of consumer data distributed across numerous touchpoints are brought together by CDPs, which serve as a unifying factor. Businesses can overcome the constraints of particular marketing channels by centralizing this data and gaining a holistic understanding of their customers.


CDPs will continue to be a crucial resource for companies aiming to stay ahead in the race to provide excellent customer experiences as the hyper-personalization age progresses.


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