A CDP (Customer Data Platform) is software that collects a customer's data from multiple sources and builds a single, coherent, complete view of each customer. This allows businesses to target customers with relevant marketing messages, and provides a single customer profile that can be used to personalize the customer experience across marketing channels.
CDPs collect a broad spectrum of information about a customer's actions, demographics, and transactions. This includes tracking the length and number of interactions, purchases/returns, and basic information such as the name and address of a customer.
CDPs can also track a customer's interactions with your website, email marketing, and social media. By tracking these interactions, your company can build profiles of customers that depict their interests and preferences. This information can then be used to create targeted marketing messages that are more relevant to your individual customer and target audience.
How does a CDP work?
A CDP collects customer data from various sources such as web analytics, email marketing, CRM systems, social media accounts, and more. It then stores this data in a centralized repository and creates unified customer profiles that can be used for marketing campaigns, segmentation analysis, personalization efforts, and more.
What are the benefits of using a CDP?
Using a CDP provides businesses with an efficient way to manage their customer data by collecting it from multiple sources into one central location. This makes it easier to access accurate and up-to-date information about customers for better segmentation analysis and personalized marketing campaigns. Additionally, using a CDP can help businesses save time and money by reducing manual processes associated with managing customer data.
Fun Fact:
"According to a study by Gartner, the global CDP market is expected to reach $1.3 billion in 2020, with a compound annual growth rate of 38% through 2023." (Gartner, 2019)