What is a CDP? What does it do?

What is a CDP? What does it do?

Well, CDP stands for Customer Data Platform and CDPs are meant to:

  1. Help bring together data inside a company, using easy integration patterns and identity resolution.
  2. Build customer profiles to provide to your marketing team to build into Segments / Audiences.
  3. Use Data Science to look at those customer profiles and look for patterns (highly engaged anonymous users, low engagement new users, potential churn risk customers)
  4. Deliver the right users / audiences into your marketing platforms (Email, Website, Ads, etc.)
So a CDP (Customer Data Platform) is meant to automate a ton of manual integration tasks, use intelligence to understand your prospects/customers and then deliver better ad / email and web experiences to those customers. 

 

What are the common things a CDP 'does' for you?

  1. Unify customer data: A CDP can collect data from multiple sources, such as websites, mobile apps, CRM systems, and marketing automation platforms. This data is then stored in a central repository where it can be analyzed and used to create personalized customer experiences.
  2. Create customer profiles: A CDP can create customer profiles by combining data from multiple sources. This data can include customer demographics, purchase history, website activity, and social media engagement. Customer profiles can be used to identify customer segments, track customer journeys, and measure the effectiveness of marketing campaigns.
  3. Personalize customer experiences: A CDP can be used to create personalized customer experiences by delivering the right content to the right customer at the right time. This can be done through email, push notifications, in-app messages, and other channels.
  4. Optimize marketing campaigns: A CDP can be used to optimize marketing campaigns by providing better targeting and measurement. This can lead to a decrease in marketing costs and an increase in sales.

What problems is a CDP meant to solve for?  Once we get past the technical aspects of bringing together data and creating customer profiles, lets talk about the benefits / problems that the CDP can solve for. 

  1. Ad Efficiency
  2. Email Capture on the Website
  3. Email Clickthrough Increases
  4. Identify and Convert Upsells 
  5. Reduce Churn

Check out a deeper dive into how CDPs can help solve real problems as well as how much you might save => here: https://www.lytics.com/first-party-data-calculator/ 

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