What is a Customer Data Platform?

In this blog, we’re going to look at how Customer Data Platforms are used to personalise marketing efforts. These cutting-edge pieces of software can be used to transform the way that marketing campaigns are delivered. Let’s take a closer look.

What is a Customer Data Platform?

A Customer Data Platform, or CDP, is software that combines data from a variety of sources to form one centralised, single customer database. This database will contain data about customer touch points and interactions with individual products and/or services.

The database can then be interrogated to obtain insights about customer behaviour for marketing purposes. It can be segmented and analysed in various ways to extract vital data for marketing.

Who uses Customer Data Platforms?

Customer Data Platforms are used by marketing teams, agencies and data analysis company professionals. Each of these users will be aiming to extract the CDP data to personalise marketing campaigns for better results.

A data analysis company may also use the insights from the system to provide recommendations to clients, to help them improve their marketing strategies and get better results.

What are the benefits of Customer Data Platforms?

Customer Data Platforms offer various benefits. For example, they help to organise customer data and make its management far easier. Secondly, they make it easier to obtain customer insights.

Data protection and privacy are also enhanced, with these safety frameworks built into the software so that compliance is ensured.

Where are Customer Data Platforms sourced?

Some companies may build their own, but most will buy off-the-shelf systems that are ready to be implemented into the business and embedded with existing systems and databases. Many of these CDP software tools are cloud-deployed for ready licensing and immediate access. This means that businesses can rapidly access the benefits of CDPs without expensive or prolonged technology development cycles.

Customer Data Platforms are complex but hugely powerful systems that can offer businesses a far better means of achieving customer marketing personalisation for better conversions. Used correctly and fully, they can offer profound value to any business with a marketing ethos.