What is CDP and how it works?
A Customer Data Platform (CDP) is a tool that collects, organizes, and analyzes customer data from various sources. It helps marketers understand their customers better, personalize marketing campaigns, and enhance customer experiences.
From a marketing perspective, a CDP acts as a centralized hub that combines data from websites, mobile apps, CRM systems, email marketing platforms, social media, and more. It consolidates information like demographics, transaction history, browsing behavior, and social media interactions.
The benefits of using a CDP in marketing include:
1. Customer Insights: CDPs provide a complete view of customers, allowing marketers to understand their preferences, behavior, and purchase habits. This enables the creation of targeted and personalized marketing strategies.
2. Segmentation and Targeting: Marketers can segment customers based on specific criteria. This ensures that marketing campaigns reach the right audience with the right message at the right time.
3. Personalization: CDPs enable marketers to deliver highly personalized experiences. They can tailor marketing messages, recommendations, and offers based on individual customer preferences, past purchases, and interactions.
4. Omnichannel Marketing: CDPs track customer interactions across various channels and devices, allowing marketers to create consistent and seamless omnichannel campaigns. Customers receive unified experiences regardless of the channel they use.
5. Campaign Optimization and Measurement: CDPs provide real-time data and analytics to measure campaign effectiveness. Marketers can track key performance indicators, analyze customer engagement, and optimize campaigns based on actionable insights
Summary:
What makes CDP outstanding is that it is capable of collecting data from all sources to a single point. It connects, stores, unifies, enriches and activates by the following activities
Owned platforms pass the first-party data to CDP
CDP enriches the data from other sources by exchanging and purchasing through data providers.
The enriched data is utilized for more accurate ad targeting or message personalization
The data is also visualized via business intelligence tools
Some platforms like ARM Treasure Data have a built-in dashboard such as Customer 360 View, which can be customized through API
Example of Customer 360 View
- Revenue gained
- channel preference
- Predictive Score to the future behaviours
- Interest Categories
- Matched segments to the customers with the similar profiles
- Customer Journey, media attributions and touchpoints as the digital footprints
- How they Visited webpages
- How they engage to emails
Reference
- https://piwik.pro/blog/dsp-dmp-hybrid/
- https://www.slideshare.net/EddyWi/the-dmp-101-data-management-platforms-explained
- https://orbitsoft.com/blog/2014/03/wev-added-a-lot-of-dmp-providers-and-increased-your-odds-for-advertising-success/
- https://www.cdpinstitute.org/directory
- https://www.slideshare.net/EddyWi/cdp-101-everything-you-need-to-know-about-customer-data-platforms-138106895
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