While running your business, you have a chance of getting the data from various sources. Personalizing it for the benefit of your business is a critical task. Incomplete data from multiple sources may leave companies in a situation where they cannot join the dots and build meaningful customer segments.
Using CDP, you can create a single view of the customer. In this blog, we will talk about what CDP is and why businesses need one.
What is CDP?
We abbreviate ‘Customer Data Platform’ as CDP. Your business might have multiple channels of marketing & communication. Bringing all this data and creating a single view of the customer is what CDP does. Hence, if we want to define CDP in a single line, it would be,
‘A technology that helps you to stay away from silos of data, and create a single view of your customer data gathered from multiple sources.’
For example, a CDP brings together data from,
- Online transactions
- In-store purchases
- Website behavior of your customer
- Email Engagement
The primary focus of CDP is to enable cross-channel personalization and the customer’s journey. Implementing a CDP ensures that your efforts in personalization are based on your customer’s behavior.
Since you now have an idea regarding what CDP is, it’s time to look at the benefits of CDP for a business
Benefits of CDP (Customer Data Platform)
There are several benefits of CDP, which help businesses in personalizing their marketing campaigns for better results. A few of them are listed here.
- In the current marketing scenario, time is a significant factor. As a digital marketing agency or a marketer, if we can implement our marketing campaigns with all the insights without wasting time, then it is preferable. Hence, CDP becomes a genuine requirement for your business, as it can collect all the data points from various channels and present them to you in a very consolidated format.
- You may avoid personalization failures with a CDP. If you get fundamental information wrong, getting personalization in place will never help you. For example, when you send an email recommendation to your client for a product they had purchased just moments ago. Such emails will hamper your relationships with your customers, as they might find it an automated email.
- A CDP gives you multi-channel consolidated data that you can analyze to solve several of your queries. Like, your most loyal customers, who have not made any purchase recently, and many such questions.
- A CDP in place will give you more intelligent options to personalize your marketing. It helps you in improving your customer’s experience.
- When we say better personalization, we mean that a CDP helps you build real-time customer segmentation based on the real-time customer’s behavioral data. This, in turn, will help you to increase your business revenue.
This shows that a customer data platform (CDP) will allow you to access, analyze, and react to everything you get to know about your customers. It truly means that you can do anything with your data to personalize your marketing campaigns most effectively.
- With a CDP, you can improve your customer’s experience leading to more conversions.
- It helps you in increasing your customer’s loyalty.
- Without having a CDP in place, marketers can’t reach their fullest potential.