What is a customer data platform (CDP) and what are its advantages?

Nowadays, companies have access to a large amount of consumer data, but in many cases, the volume of information is so large that it becomes difficult to handle, leading to missed opportunities and failure to draw valuable insights.

The available information includes transactional, demographic, and behavioral data across various channels such as online advertising, e-commerce, and customer service over the phone. If they could be organized and structured in one place, very useful customer profiles could be created. However, in reality, this data is often in different systems within the company.

What is a CDP?

A customer data platform (CDP) is a software that enables companies to collect, store, and analyze information about their customers in only one place. This platform can collect data from various sources, such as social media, emails, purchase transactions, and other information systems.

By using a customer data platform, companies can gain a more complete and detailed understanding of their customers, which allows them to better understand their needs, preferences, and behaviors. This enables them to personalize their offerings and communications to meet the specific needs of each customer and improve their overall experience.

Furthermore, a customer data platform can also help companies identify new sales opportunities, improve customer retention, and increase customer loyalty by offering a more personalized and satisfying shopping experience.

In summary, a CDP is a valuable tool for any company looking to improve their understanding and knowledge of their customers, which can lead to better business outcomes and greater customer satisfaction.

How does a CDP work?

The platform works by integrating and unifying data from multiple sources, such as sales systems, social media, emails, mobile apps, and more.

Once the data is collected, the CDP uses algorithms and advanced analysis tools to identify patterns and trends in customer data. The platform also allows companies to segment their customers into groups and personalize interactions and experiences for each segment.

But how does a customer data platform integrate with other tools and systems in the company? Generally, integration is done using Application Programming Interfaces (APIs) that allow data to be transferred between systems.

For example, a company may integrate its customer data platform with its Customer Relationship Management (CRM) system to get a more complete and detailed view of its customers. The customer data platform can provide additional data about customers that is not collected in the CRM, such as social media activity or browsing history on the company’s website.

It is also common for companies to integrate their customer data platform with marketing automation tools to send personalized messages to customers based on their interests and behaviors.

Examples of companies using a CDP

Here are some examples of companies that have successfully used a customer data platform (CDP) and achieved positive results:

  • Airbnb: Airbnb uses a CDP to collect and unify data from its users around the world. The platform uses this data to personalize the user experience, offering accommodation and activity recommendations based on their preferences and previous behaviors.
  • Sephora: Sephora, the cosmetics store chain, uses a CDP to collect data on the preferences and purchasing habits of its customers. The platform uses this information to personalize product recommendations and offer personalized promotions.

What is a CDP in marketing

Customer data platforms (CDPs) are a valuable tool in the field of marketing for several reasons. Some of the benefits of using a customer data platform in marketing include:

  1. Enables a complete view of the customer: A CDP collects information about customer behavior and preferences across multiple channels, allowing companies to gain a complete view of their customers. This may include information about their transactions, interactions on social media, website navigation, and more. By better understanding their customers, companies can create a personalized shopping and service experience that increases customer loyalty.
  2. Facilitates customer experience personalization: A CDP enables companies to create detailed profiles of each customer, which helps to understand their individual needs and preferences. This allows for personalized customer experiences, such as offering personalized promotions and recommended products based on customer preferences. Customers are more likely to be loyal to a brand that provides them with a personalized shopping and service experience.
  3. Increases marketing efficiency: A CDP helps companies to segment their customers into specific groups based on their behavior and preferences. This allows companies to create more effective and relevant marketing campaigns for each customer segment. As a result, companies can achieve better results from their marketing efforts.
  4. Improves customer retention and loyalty: By better understanding their customers and providing them with a personalized shopping and service experience, companies can increase customer loyalty and retention. Personalization can also help companies attract new customers and convert them into loyal customers.
  5. Provides a competitive advantage: Companies that use a CDP can gain a competitive advantage by offering a personalized shopping and service experience that the competition cannot match. Customers value personalization and are more likely to be loyal to a brand that provides them with a personalized shopping and service experience.

What are the most popular CDPs?

There are a variety of well-known customer data platforms on the market. Some of the most popular are:

  • Amplitude: offers affordable pricing plans for small businesses and startups, making it an attractive option for companies looking for a customer data analytics solution that fits their budget.
  • Salesforce Customer 360: One of the most important features of Salesforce Customer 360 is its integration with Salesforce CRM. This allows companies to integrate customer data from different channels and systems into a single platform, making it easier to analyze and create more complete customer profiles. It also features advanced customization and security. All this means that its price is high.
  • Adobe Experience Platform: It stands out for its integration with Adobe’s suite of products, its advanced data analysis and its real-time personalization. This platform is designed for large companies that are looking for a high-quality customer data solution and are willing to invest in such a solution, since its price is high.
  • Segment: It stands out for its integration with multiple third-party tools, its ease of use, its focus on privacy and its medium price range. This platform is designed for companies of different sizes and budgets, and is especially suitable for those looking for an easy-to-implement and easy-to-use solution.
  • klaviyo: It’s characterized by its focus on email and e-commerce, advanced customization, integration with multiple e-commerce platforms and its mid-to-high price range. This platform is designed for e-commerce companies looking to improve their email marketing campaigns and increase sales.
  • BlueConics: Notable for its real-time unified customer profiles, advanced segmentation based on customer behavior, integration with third-party tools, focus on privacy, and mid-to-high price range. This platform is designed for companies of different sizes and industries looking for an advanced CDP solution to improve the personalization and effectiveness of their marketing campaigns.

These are just a few of the many customer data platforms out there, and each has its own unique features and strengths. It’s important to carefully evaluate each platform and select the one that best suits your company’s needs and objectives.

Considerations when choosing a CDP

When evaluating and selecting a customer data platform for your company, it is important to consider the following tips and factors:

  • Define your goals: Before selecting a platform, clearly define the goals you want to achieve with it. For example, are you looking to improve marketing personalization? Do you want to increase customer loyalty? Are you looking to increase conversions? Set your goals and then select a platform that can help you achieve them.
  • Determine your budget: Customer data platforms can range in cost from free to high-end options. Determine your budget and select a platform that fits it.
  • Consider ease of use: Make sure the platform is easy to use and can integrate with your existing systems. Ease of use is key to ensuring that you can get the most out of the platform.
  • Make sure the CDP fits your data: Check that the platform can handle the amount and type of data your company needs. In addition, it must meet the security and privacy standards that your company needs as it is necessary to respect all the rules contained within the LOPD.
  • Consider the capacity of personalization: Customization capabilities are key to ensure that you can tailor the platform to your company’s specific needs.
  • Verify analytics capabilities: Make sure the platform has analytics capabilities so you can gain valuable insights from your data.
  • Consider scalability: Select a platform that can scale with your business as it grows and changes over time.
  • Make sure you have a support team: Check that the platform has a strong support team that can help you with any issues that arise.

By taking these factors into account, you will be able to select a platform that is right for your company’s needs and can help you achieve your business goals.

In conclusion, customer data platforms (CDPs) have become an essential tool for any company looking to improve the personalization and effectiveness of their marketing campaigns. With the ability to collect, unify and analyze customer data in real time, these platforms provide a unique view of customer behavior and preferences.

While there are many options in the CDP market, each platform has its own unique characteristics, such as pricing, functionalities, privacy approaches… It’s important for companies to carefully evaluate these features before selecting a customer data platform for their business.

A well-chosen customer data platform can help companies build stronger, long-term relationships with their customers, driving growth and success in today’s highly competitive marketplace.