In this digital world, consumers generate a plethora of data from several points such as websites, mobile applications, social networks, CRM businesses and so forth. Businesses grapple with ways in which such data can be managed and turned into action in order to enhance and individualize customer interactions. This is where a Customer Data Platform (CDP) comes into the picture. What is more, what are the current trends that make such tools extremely important for the businesses?
Understanding the Customer Data Platform (CDP)
Customer Data Platform (CDP) employs various software programs and processes to collate and connect all customer-related data from countless sources in a way that affords any person a 360 view about the customer. Whereas older concepts of data management were used where data collection took time, a CDP is different by collecting information and assimilating it in real time where it is immediately ready for use.
CDPs are able to capture and analyze structured and unstructured information including but not limited to purchase records, web or app behavior, and social media activities. Then they regurgitate this information to the organization, specifically in marketing, sales or customer service departments in more contextual way to enhance interaction with customers.
How a CDP Operates with the Business
On the business’ side, a CDP follows three major steps:
Data Gathering: The CDP captures data from a variety of sources such as websites, mobile applications, CRM systems, email marketing platforms, or social networks. This data can range from pretty basic demographics to more sophisticated information such as purchasing behavior or browsing activities.
Data Integration: Next up is the data integration process where the collected data is processed and stored to form a complete profile for every individual customer. This includes the removal of duplicate records, checking consistency between pieces of information and the source data, and merging different types of information under the same customer account.
Data Deployment: Once the data is consolidated, a CDP helps share this data out to other systems and applications or helps bring actionable insights from all data into one platform to allow for personalization offering, relevancy in communication and improve engagement and interaction with all users regardless of the channel used.
Wow Statistics Per CDP
Personalization at Scale: Another major function of the CDP solution is the provision of superior personalization in an organization as one to the many situations. The bypassing of functional silos enables businesses to understand and engage each customer individually thus they can optimize their activities and communications focusing on those that are most valuable to customers.
Better Understanding of Customers: CDPs cater businesses with great understanding about the customer’s likes and dislikes. This understanding, which is based on facts, helps organizations make better choices, enhance the efficiency of marketing plans and also discover new avenues of growth.
Improved Data Organization: CDPs help to eliminate the lack of integration of information as they gather data from various sources. As a result, all departments are able to have access to common, precise and current information regarding customers which improves their functioning.
Engagement at the Speed of Sale: Thanks to the nature of technology employed by solution providers like CDPs, corporate entities can respond to customers’ actions as they happen. The fact that customers can continuously be engaged enables businesses to enhance the customer experience significantly.
Data Safe and Compliance: CDPs ensure that in this age where there are lots of restrictions on how personal data is used, businesses will still be able to use customer data, which would typically have been impossible. They enable improved management of how customers’ data is used, tracked, and shared in compliance with the GDPR, CCPA law.
Conclusion
Clearly, having a Customer Data Platform(CDP) provides a competitive edge because companies are able to bring together various customer data to provide more effective customer interactions in a way that is compliant with industry regulations. Providing a 360-degree view of a single customer and assisting marketers to utilize that view in real time makes CDPs the new core of marketing technologies.
