What is a Customer Data Platform? Why is it essential?

What is a Customer Data Platform? Why is it essential?
5 min read
09 February 2023

Business owners have to tolerate multiple issues while they collect the customers' data and create their respective records. They have to wander through various social media platforms & ultimately get little or inexact data about the customers after spending their high efforts. 

Instead of getting and resolving the complications of the customers, they waste a huge amount of time. Here, only the (Customer Data Platform) CDP tool would be enough to fulfill your all above necessities & will activate your collected data for real-time engagement. Are you geared to know all other bottomless functionalities? Let’s go ahead!

What is a Customer Data Platform?

The CDP (Customer Data Platform) is a marketing method or technology that gives you a unified collection of customer information. It does create a centralized, coherent, and complete database of consumers’ details by dragging the data from multiple sources.

Now, you don’t need to wander through multiple channels since it’ll provide you with a formatted & combined customer profile. By shorting the valuable possibilities from your website viewers & other media of communication. So, you can access the entire information easily from any software system. 

For advanced usage, marketers use this platform as a tool since it does feed them in finding the customers’ pain points by using CSV strategy. This tool uses a unified view of customers & becomes capable of providing all-encompassing information by fetching up data from internal as well as external so

The Customer Data Platform is specially designed for the Sales & marketing team as they need every bit of information about each and every customer well-formatted. Just because this platform can provide you with one view along with a well-formatted record of your customers, it used by 63% of marketers.

How does CDP (Customer Data Platform) work?

Initially, Customer Data Platform software does observe those customers who are interacting with your company and grabs their data across various social channels. It uses multiple channels such as web forms, social media, eCommerce, and emails, and the list goes further. After collecting the info, it delivers a clear image of their detailed profiles.

The CDP works relevantly means that this platform has covered a customer’s detail and that detail is matching with your requirement completely. So, it will find more relevance in accordance with the recently found information and help you in targeting the same more. 

Furthermore, the received leads targeted by sending personalized messages through the companies using the Customer Data Platform tool. Other than this, make your database easily accessible from a single place by putting all customers’ information under a hub. 

What are the Benefits of Using The Customer Data Platform?

  • 77% of marketers pay an additional payment to brands that provide personalized experience functionality but in this case, this tool will perform this task complementarily. 
  • This tool is GDPR/CCPA law and regulation enforcement which makes your relationship with your customers more reliable and healthy.
  • It does eliminate the data silos by breaking them down into separate combinations like names, email addresses, purchase history, etc & updates them effectively in real time. 
  • From discovering a company’s brand at the time of making its final purchase the Customer Data Platform will perform each task faultlessly. 
  • The CDP is a very practical revenue generator tool that uplifts your 5 to 15% revenue and increases marketing time stability from 10 to 30%. 
  • You can increase operational efficiency by taking this tool into use. You just need to integrate it with another tech stack then it will save your working hours and reduce the setup costs as well. 
  • To attract more prospects the best way might be CLV (Customer Lifetime Value) which represents the total worth of consumers over their entire relationship with services. Here, you will get the CLV features in this tool without paying the additional payment. That will help you in delivering an engaging experience to your customers and encourage them as well. 

Let’s Clear More With Statistical Data

  • The CDP industry used by 63% of marketers to map out their customers’ journeys and provide better marketing campaigns. 
  • 58% of CDP users are reporting that they are getting 5-10X Return On Investment by investing in this platform. Likewise, 4 out of 5 say that they saw a positive ROI within just 12 months. 
  • More than half of its users report achieving payback within 6 months only. 
  • Marketers that use the CDP tool report for a better understanding of customers’ journeys in comparison to the previous record. On the other hand, 50% cite enhanced their communication and increase the size of their business.  
  • Operating this tool you will get a centralized and error-free record of each customer view noted by 62% of its users. 
  • For collecting the customer’s data it is needed to take care of their personal information from cybercrime. So, 66% of marketers listed that the Customer Data Platform is compatible with the GDPR/CCPA privacy law act. 
  • 75% of the majority have declared that CDP is capable of loading the data from all sources without missing one from which 57% are identically matched.
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