A customer data platform (CDP) is software that collects real-time customer data from multiple sources and compiles it to create customer profiles.
Detailed Explanation
CDPs design consumer profiles by combining information from multiple first-, second- and third-party sources, including website forms, email activity, social media interactions, subscriptions and customer relationship management (CRM) tools.
Companies use CDP and CRM for data collection. However, CRM only records a potential customer’s activity through manual entry, whereas a CDP automatically builds comprehensive customer profiles.
CDPs also differ from data management platforms (DMPs) – tools used to create consumer profiles for advertising and marketing. DMPs collect and store data on potential customers and share it with advertisers for targeted marketing.
A CDP is important for business because it obtains and analyzes data to determine the factors that motivate people to interact with your brand.
Existing customers feel motivated to maintain engagement if they receive a consistent and personalized experience. New customers rely on existing customers’ satisfaction before initiating contact. As a result, CDPs help measure existing metrics to acquire new consumers and keep them engaged with your products and services.
Here are a few examples of CDPs:
1.- Segment: Created by Twilio, Segment allows users to facilitate cross-platform engagement, personalize client data pipeline, reduce data loading time and more, simplifying manual efforts.
2.- Blueshift: The company offers audience segmentation, real-time data unification and personalized targeting to drive engagement and nurture leads.
3.- Insider: The brand offers an artificial intelligence (AI) intent engine that allows its clients to predict customer behavior and put them into ideal target segments.
4.- Lytics: Through its three products, the company helps clients create focused target groups and build personalized website experiences for customers.
5.- Microsoft Dynamics 365 Customer Insights: This works as a part of Microsoft’s CDP and delivers customized client experience. It provides insights into customer behavior.