What is a customer data platform ?
What does a customer data platform do?
A Customer Data Platform (CDP) connects data across each stage of the customer lifecycle, it is the perfect tool for marketers to understand when, why, and how customers engage with their brand. As customers are constantly moving between segments and advancing through their customer journey, marketers need to have a single platform to manage and automate this process.
What are the stages of a CDP?
- Data onboarding. This stage brings together common data sets into one place. Most commonly bringing together website visitor data, customer records (CRM), lead details, app usage (mobile or online TV or other device), offline store or other data, call centre data and partner data.
- Data matching and processing. This stage is about bringing all of the customer data together and making it useful. Mapping often occurs on customer IDs, order IDs and the like. A strong spine of identity and IDs is vital for this process to be effective.
- Data segmentation, enrichment and AI.
This stage is all about turning customer data into insight and value using segmentation, data science, and AI modelling. For example, understanding what products each customer is likely to be interested in and building segments based on their behaviour
- Delivering use cases.
This stage is all about activation, which can be syndicating the data with media platforms, personalising websites, and giving a personal touch to each customer email sent. The data can also be pushed to reporting dashboards and provide business intelligence for better decision making.
Do I need a CDP?
Is a CDP the same as a CRM?
No. CRM (Customer Relationship Management) platforms store customer data, but they are more sales management systems rather than advanced data platforms that look to bring datasets together for advanced matching, segmentation, and ultimately media syndication.
Is a CDP the same as a DMP?
No. The major difference between a CDP and a DMP (Data Management Platform) is that a CDP wherever possible wants to tie data back to customer records and identifiers such as email address and phone number. DMPs by contrast will restrict personal data for privacy preservation and only deal with pseudonymised data – online IDs, cookies and such – which are steadily becoming obsolete.
What types of datasets does a CDP manage
A CDP’s function is to onboard different datasets from multiple sources, unify the data under a single Customer ID and make it available for Digital Marketing purposes. Here is an example of some of the data a CDP can onboard, segment and activate in media. Some examples of the data a CDP can onboard, segment and activate in media are: Personal data, demographic data, Transactional data, Engagement data, Behavioural data, Market Research data.
What are the two methods used to match customer data?
A CDP will ingest data from multiple sources. Identity Graphs (which may map to a CDP) match each source under a single unified ID that can be recognised across channels and devices. There should be no two IDs for the same customer or user. Within identity graphs there are two methodologies to match data sources: Deterministic and Probabilistic.
How do CDPs apply customer data?
What is customer lifecycle management?
How can a CDP enhance the Customer Lifecycle Management?
- Understand the factors that increase the Average Order Value.
- Increase engagement based on the customer profile.
- Increase repeat purchase frequency.
- Drive up revenue and sell-through on specific product lines.
How can a CDP improve customer experience and loyalty?
As a CDP connects data across each stage of the Customer Lifecycle, it is the perfect tool for marketers to understand when, why and how customers engage with their brand and its products to improve performance across all marketing channels. As customers are constantly moving between segments and customer journeys, marketers need to have a platform to fully manage this process.
What are the benefits of a CDP?
- Richer data for audience targeting
- Direct media platform integrations
- Integrated media orchestration
- Driving new customers and leads
- Reporting and data science
What are the top use cases for a CDP?
- Onboarding and Automation
- Keeping Data Clean and Compliant
- Up-selling Customers
What is a retail media network?
Retail media is advertising within retailer sites and apps – usually by brands that directly sell products with retailers, though this is not always the case. Retail media advertising can also come from non-endemic brands in verticals such as financial services or travel—ones that are interested in retailer audiences but don’t necessarily sell products on those retailers’ sites and apps.