Customer Data Platform: the guide
CDP, CRM, DMP, etc., to say the least, there are a lot of acronyms in the world of marketing tools ! In this guide, we are going to focus on CDPs – Customer Data Platforms – and see how they could be useful for your business, and why you should consider acquiring this type of solution.
- The history of Customer Data Platforms
- What is a customer data platform?
- Focus on customer data
- Differences between CDP and CRM
- Differences between CDP and DMP
- Main advantages you will benefit from with a CDP
- Types and Uses of Customer Data Platforms: An In-Depth Analysis
- Major CDP software vendors
The history of Customer Data Platforms
Managing customer data is nothing new. From handwritten individual filing cards to modern cloud-based solutions to massive 70s computers, the search for the ultimate CDP tool has been going on for decades. Modern UAE WhatsApp Number List computing power has considerably accelerated the pace of technological progress, allowing the advent of increasingly powerful tools.
The management software (CRM) were introduced in the 90s, and allowed businesses to manage their interactions with customers and prospects. These platforms were also capable of performing data-driven analyzes that could contribute to loyalty and sales. While useful, these tools had some limitations: they only handled data from registered customers and only used pre-defined first-party data.
Things changed in the 2000s with the arrival of Data Management Platforms (DMP). These were aimed primarily at advertisers and could assist them in the planning and execution of their media campaigns. Unlike CRMs, DMPs worked with second and third-party data, and they were able to segment anonymous identifiers.
Customer Data Platforms (CDP) were introduced a few years ago in response to business demand for better customer insight and omnichannel marketing initiatives. The older tools – CRM and DMPP, while useful in their own fields, had created data silos, i.e. compartmentalization, and marketers were not able to use any productively and optimally all the data to which companies had access.
CDPs solved this problem by providing a unified customer view that brings together a company’s proprietary data (and to some extent, second and third-party data) into a single, comprehensive platform. One of the major advantages of CDPs is their ability to store extremely detailed first-party data, such as events that occur on a website.
What is a customer data platform ?
A Customer Data Platform (CDP) is software that aggregates and organizes customer data across a variety of touchpoints and is used by other software and systems, in order to perform marketing actions and efforts. CDPs are able to collect and structure the data obtained in real time into individual and centralized customer profiles.
A CDP can also be described simply as software that has the ability to create a permanent, unified customer database, accessible to other systems.
Customer data platforms create customer profiles by integrating data from various sources (first, second and third-party). This includes data from your CRM and DMP, transactional systems, web forms, email and social media activities, behavioral data acquired on your website, as part of your e-commerce, etc. .
Focus on customer data
CDPs exist because customer data has become essential for business and marketing operations and activities.
Customer data is information that consumers leave behind when they use the internet and interact with businesses online and offline, through websites, blogs, e-commerce portals and platforms, and in-store interactions. They have immense value for businesses, even though we know that the days of third-party data are numbered, and businesses are going to have to rethink the way they collect and manage their customers’ personal data.
There are four main types of customer data that CDPs collect and organize.