A Customer Data Platform (CDP), is a system that creates a persistent, unified customer database that is managed by the marketer and is accessible to other systems. CDP's allow marketers to gain access to their data without leaning on IT, giving them a comprehensive view of their customers. This data can be accessed by various other systems to enable omnichannel marketing based on the data marketers choose to express. The goal of a Customer Data Platform is to help retailers manage their data and nurture relationships with existing customers.
1. Marketer Managed Platform 2. Unified 1st Party Data 3. Artificial Intelligence 4. Actionable Data
CDP's are known as "marketer managed systems," they are built and controlled by the marketing department and typically don't require the technical skill needed for a traditional data warehouse project. As the marketer, you get to decide what data is included and what data is exposed to other systems. Simply put, a Customer Data Platform is tailored to your marketing needs.
Here's an idea of some of the data you can expect to pull into a CDP:
Retailers and brands have a plethora of data at their fingertips; however, it's scattered across platforms, stored in different formats, and generally not in a way that can be combined easily. Companies spend millions on in-house solutions to create data warehouses that willcompile and unify data from different sources - sometimes it works, most of the time it doesn't.
Customer Data Platforms are built to unify first party data from all of a marketer's disparate sources. CDP's are engineered to do the heavy lifting and create comprehensive, compiled data, meaning companies can save that million-dollar investment they were going to make on an in-house solution that may or may not work and put it towards strategies and projects proven to grow revenue.
Once a retailer's data is brought together within the CDP, it is analyzed to help marketers understand trends within their business on a macro and micro-level. Many CDP's, like Windsor Circle, apply predictive modeling to the data to create data sets based on perceived or likely behavior, such as next predicted order date, predicted gender, dynamic product recommendations, Future CLV, and more. Marketers can use this data to gain an overall view of the health of their consumer base, as well as take a closer look at micro-segments of their business to truly understand things like:
One of the most important aspects of a Customer Data Platform is that the data is useable. Within the CDP itself, marketers can create segments of customers based on predictive data sets, or even access certain data sets via different systems, such as their email marketing platform, Facebook, or Display Ads. Furthermore, a CDP should supply a retailer with a feedback loop - reports and analytics to help marketers understand how their campaigns are doing.