What’s a Customer Data Platform? Guide to CDPs

Customer Data Platform

Today, the buying process of a customer is more online-oriented with a number of customer touchpoints. For example, when a customer looks for a new phone online, he is likely to search for new phones first. The same customer may interact with multiple sites to check out different options. With more research, the results and ads start to become more relevant so that it feels like the promotions are made just for you.

With this type of personalized promotion, the chances of getting more sales to increase significantly. Their hired healthcare BPO services or in-house sales team gets more leads and confirmed orders using customer data platforms or CDPs.

Dig into this blog to see what CDPs are, how they work, and what more to expect.

CDP or customer data platform is a software application that serves as a collection tool and database for all customer interactions with a brand’s product or services. You may have heard the term customer persona. It is actually a profile that fits a company’s ideal buyers. Usually, these personas are created on the basis of recorded data and targeted guessing. The CDP helps in creating more realistic and effective customer personas based on the interactions a customer appreciation idea actually has with a brand.

You can segment this realistic data to further optimize. With CDPs, you have the data starting from what website page your audience visit. You have data from interactions on social media platforms too. Even email interactions can be factored in with your marketing strategy thanks to these apps. Marketers can create multiple buyer profiles and then set a more results-focused campaign.

Besides promoting your products to new potential customers for conversions, shaping finer retargeting and cart retrieval campaigns is easier when you utilize a customer data platform.

What Data Does CDP Use?

The marketing efforts of a company start with utilizing data. Generally, marketers use third-party data. This is the data advertising tools buy and make it accessible to you against subscriptions. For example, the keywords for organic ranking and PPC ads that you see on different tools are third-party data. The third-party data may serve the purpose of showing you analytics to the keywords.

In contrast, CDP collects data like when, where, and how customers interacted with your brand. So, these insights are much more accurate, valuable, and actionable. However, the results significantly depend on how well the data is used.

How to Make the Best Use of a CDP

Again, CDP is a tool and how you leverage it to your advantage depends significantly on how it is used. A customer data platform is a data warehouse with multiple data sources. What data you utilize depends significantly on yourself.

Setting Data Preferences

To make the best use of the tool, you have to do three things: set the right KPIs, know what data you need to collect, and store the data. Your KPIs are the landmarks that show you how well you are following the main goal. So, it is best to set the most suitable KPIs for your business. When you have clarity of your goals, then create your KPIs. Also, do not make things overwhelming for yourself.

When you know what to measure, your insights will be more detailed and useful for the business. Collect data that can actually help you with personalized marketing efforts. So, the second phase is to actually collect useful data. It is important to note there can be tons of data that may not actually do you any good at all. Working on the collection of such data bogs down productivity and efficiency.

Storing data is the next important phase. You do not have to just store data but make it understandable and useful too. So, be sure to keep these aspects in mind while storing data.

Refine Your Data

Not all of your data is going to be useful even after careful collection. And it’s not your fault or because of any problem in your collection process. There could be several factors like relevancy, time of collection, poor management, and other factors. You have to refine your data further. What you are left with is the gold standard of customer-generated data for your marketing efforts.

Segmentation of Data

Now that you have the most accurate and useful chunks of data, you can create a target audience with multiple user personas that resonate with real-time customers. Your content and marketing efforts will be more relevant to a buyer on a personal level. Thus, getting you a much higher return on investment.

So, this is how CDP works and helps you with personalized marketing for your customers.

DISCLAIMER : This and other personal blog posts are not reviewed, monitored or endorsed by Blogjab. The content is solely the view of the author and Blogjab is not responsible for the authenticity of content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.


I’m a professional web hosting Analyst in the USA. For the past 15 years, I've been helping the business owner to choose the best web hosting for their website. Apart from my profession, I love to write blogs, articles, and guides on web hosting services.

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