Many marketers are familiar with CRM and DMP systems, but a new term, Customer Data Platform (CDP), has recently gained popularity in the marketing data platforms.
According to studies, CMOs spend two-thirds of their budget on customer retention and growth around the world. Consumers connect with companies through a variety of channels, including phones, tablets, computers, smart TVs, and other devices, therefore marketers have an urgent need for a platform that gives them a unified view of their customers’ data and behavior like data attributes. CDPs began to gain traction in this way.
A customer data platform (CDP) is a marketing system that integrates customer data from marketing and other channels.
Customer profiles, customer identifiers, web and mobile session details, app interaction details, email responses, lifecycle stage updates, and so on are all stored in the CDP, according to experts. All of this information is gathered and formatted in such a way that a marketer may readily manage it.
Marketers should use CDPs.
A customer data platform (CDP) provides marketers with a comprehensive view of each and every consumer. A marketer may quickly access all types of data with the help of a CDP. For example, browsing history, previous purchases, lifecycle stage, email, phone number, and other information.
These are the most essential takeaways from a Customer Data Platform:
● Marketers are in charge of CDPs.
● Have a single database for consumer behavior, profiles, and other associated data that is unified and permanent.
● For each consumer, use the same identifier across all channels.
● Compatibility with other platforms (CRM, Helpdesks, Ad Services and more).
● Allow marketers to leverage CDP data on external platforms without having to make any changes.
Now, a CDP might be compared to CRMs and DMPs in that they all collect and store customer data on a single platform. However, there are significant disparities in the data collection and processing methods. The following section discusses how they differ from CRMs and DMPs.
Aggregation of CDP data can include:
● Customer web and mobile session information
● Data on demographics and behavior
● Partner and external app data Data about in-product and in-app usage
● Data on events and clicks
● Profiles of customers and more
While these are the most significant data types that a CDP monitors, it is capable of much more. CDPs, for example, can capture a variety of data such as email answers, social media mentions, and more.
As a result, it becomes a very valuable tool in your organization, and it’s sometimes not just good for marketers, but also for customer service or account managers, who can keep a close eye on customer accounts and fix any issues that arise.
What distinguishes CDPs from CRMs and DMPs?
The following are the main differences between CDPs and CRMs and DMPs:
● CDPs do not require any professional support to integrate with various platforms. CRMs and DMPs, on the other hand, may require the assistance of a developer.
● DMPs and CRMs, unlike CDPs, are unable to do advanced identification. They don’t have access to the unified data sets that CDPs have.
● Unlike CRMs and DMPs, which require manual data entry, CDPs now leverage AI and ML algorithms to generate customer profiles from raw data.
● For targeted marketing, CDP can reveal new customer qualities. CRM and DMP can only segment the audience and keep anonymous user profiles.
● While CRMs and DMPs can extract just segmented data based on distinct categories, CDPs can store contextual, demographic, and historical data.
Although CRMs, DMPs, and CDPs have many similarities and complement each other in some ways, CRMs and DMPs together will work well if you are searching for third-party solutions on a short-term basis. Customer Data Platforms are the way to go if you want to build long-term relationships and have all of your data in one place.
Customer Data Platform by Sitecore.
Sitecore CDP is a sophisticated customer data platform that eliminates data silos and consolidates real-time and historical data from all online and offline channels to provide a single customer view, resulting in increased revenue, loyalty, and retention.
The platform’s secure privacy by design approach generates trust, while real-time segmentation enables you to deliver marketing campaigns utilizing live audiences that track customer behavior across all touchpoints and cut advertising costs by precisely retargeting audiences.
CDP’s Key Advantages
A customer data platform is a useful tool, but what are the benefits of adopting one for your company?
Customer data management, or the act of collecting, organizing, and using customer data, can be simplified by CDPs. Furthermore, because CDPs update immediately when new data becomes available, they provide greater flexibility and agility. This ensures that your consumer data, profiles, and segments are regularly updated.
CDPs also boost productivity by allowing you to use numerous data sources in real time. You won’t have to waste time manually managing, confirming, and removing duplicates from your data.
