What is a Customer Data Platform (CDP)?
Customers need an individualized approach, they feel taken care of and trusting. Being able to give a customer a unique and personalized experience used to mean a lot of interactions and time must have been spent with that individual.
This process has been made easier with technology being able to automatically aggregate data and analyze it. Customer Data Platforms (CDPs) are the new way to produce a more effective customer experience. According to the CDP Institute, a CDP is defined as “a packaged software that creates a persistent, unified customer database that is accessible to other systems.”
A CDP collects data from other sources and centralizes it into one place for better marketing, customer service and experience purposes. Using this data, you can review trends and build individual customer profiles. These profiles include customer-company history, NPS scores and any CXM data.
“CDPs are purpose-built to collect data from a wide range of sources, unify it together to form a comprehensive view of the customer across devices and channels, and then make that data available to other systems” (Hill 2020)
It also provides stacks which adapts to the customers changing preferences and patterns. More effective marketing strategies can be put into place, advertising based on past purchases, and behavior. Customer Data Platforms also make you more effective in your business. Hours of manual integration can be saved with the automatic integration of data offered by the CDP.