What is a Customer Data Platform ( CDP ) ?

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March 29, 2020

What is a Customer Data Platform ( CDP ) ?

CDP Institute says a customer data platform is packaged software that creates a persistent, unified customer database that is accessible to other systems.

According to prestigious publications like Forbes, companies that give priority to data-driven marketing are six times more profitable year-over-year than companies that don’t. Seventy-five percent of those data-driven companies also see an increase in customer engagement, and data-driven strategies often produce between five to eight times more ROI than strategies without.
 
Results like this support the idea that the future of marketing lives in the data, but not just any data- it’s a combination of several components. Its behavioral data enhanced by AI (artificial intelligence) and machine learning that is accurate, real-time and interconnected.

How do enterprise-level marketers drive real business results?
By getting hold of and using actionable, real-time, accurate behavioral data. Companies that do, dominate in their respective industries. Examples of data-driven companies that embrace a customer-driven platform are Amazon, Spotify, and Netflix.

What is a customer-driven platform?
Defined by the CDP Institute, a customer-driven platform is packaged software that creates a persistent, unified customer database that is accessible to other systems.

At the elementary level, the customer-driven platform stores, connect and combines customer data to give a real-time, 360-view of customers regardless of which devices or channels they interact with. It also supports customer acquisition and the “customer journey.”

All the data is captured if shopper “X” follows your company on social media, or browses your website, or subscribes via email, or uses your customer service ticketing systems. Their behavior such as the content they prefer to interact with, the emails they open, or customer service interaction are all stored and updated and available in real-time.

 This is the 360-degree view of a customer that companies need and want. A central repository where everything knowable about your customer is captured so marketers can be better informed and personalize the experience for that single customer profile.

 That being said, customer profiles are only beneficial when you can act on them. Unifying data is a good first step. A good customer-driven platform should also enable the ability to act on the data. This causes integrating with your current marketing channels and tools. It means bringing in data and immediately pushing it back out to all your channels to improve targeting, personalization, and ultimately, marketing results.

 Putting a strong customer-driven platform to work in your business may seem daunting, however, a good CDP can quickly simplify the process.

Know more about Intelligent CRM Contact: Steve Palladino EVP, steve.palladino@groupfio.com, or call him at
707-478-1329