Understanding CDP 

Customer Data Platforms ( CDP) are pre-coded software that helps stitch data from different sources and provide one customer view. This One Customer View can be further visualised in multiple ways to understand customers. Various stakeholders can use this database in an organisation to enhance various customer-led initiatives.  

The most common reason for using CDP is marketing to drive personalised communication to drive customer engagement. However, business teams, product teams, sales, customer experience teams can use the same to understand customer behaviour and go business decisions. 

The single most critical factor for CDP to help business impact is the number of sources one can integrate with CDP. CDP’s collect and restructure data real-time data into individual, centralised customer profiles. 

CDP is not a CRM system – CDP and CRM systems both collect data. CRM systems are focused on known database sources – like transactional data. CDP, however, can read and collate behavioural data on how customers interact with your product or service from third-party sources and can easily be correlated with CRM data. 

CDP’s come with multiple benefits for the organisation 

1. One View of the customer – The single most important benefit of implementing CDP is to build customer one View across data sources. 

2. Insights and Customer Analytics – Customer analytics involves understanding customer behaviour to make business decisions related to marketing, product development, sales, and more. The Customer One View can further be used to create micro-segments to understand their audience better.

3. Personalised experiences- Enhanced knowledge of customers helps marketing create personalised communication and experience to increase engagement 

4. Product Usability- Customer understanding also helps make your product more beneficial to your customers. That will help build customer retention and increase customer satisfaction.

5. Operational efficiency – CDP’s help avoid data silos and democratise data. It helps the technology team automate processes seamlessly, allowing uninterrupted real-time data access to the organisation.   

Key things to look for while choosing CDP 

1. Defining Primary Used cases- The best bet is to find CDP that aligns with your primary use cases. Most CDP’s come loaded with extra features which may not be necessary for you. 

2. Defining Data sources- Each CDP provides different solutions to ingest data. Look for CDP which works best with your data sources. Ensure you can future-proof your CDP investment by providing the scale and flexibility to grow with your business and data needs.

3. Defining Customer Journey – CDP’s can measure customer journeys. Look for CDP, which works best for the platform your product/ service is available. E.g., website vs mobile app  

4. Consider ROI – Look for a product that will help you build wins and brings operational  and revenue efficiencies.

5. Data Security and privacy- Most CDP’s come with multiple data security and GDPR compliant capabilities. Consider one which complies with the rules of geography in which you operate.

Customer Data Platform is an enterprise-wide tool that can improve business processes significantly and help enterprises achieve real-time, hyper-personalised customer engagement to drive revenue.

A carefully-made investment in a CDP with the above guidelines in mind can help businesses successfully operate at the speed of the customer and meet or exceed the business goals swiftly. Make CDP your best friend to help you bring customers to the centre of your business. 

Do share in your views on your journey with CDP , you can reach me on vani@consoulsolutiom.com