An American analyst coined the term customer data platform back in 2013. Since then, there are leading experts who research and explain how marketers use CDPs to address the most important marketing challenges to be able to solve.
In our previous article, we have explained that Customer Data Platform (CDP) is a software platform which creates a persistent, unified customer database that can help the companies to gain a meaningful 360-degree view of their customers.
In the first phase, rather in the data acquisition phase, the “Data” is loaded into the CDP from various data sources. However, before the customer identities can be created or linked, they have to be standardized and transformed. Further data logics can then be created through the customer-centric compression of the data. After the transfer to the “decision” phase, the necessary analyzes and selections for target group determination are carried out so that the workflow-based steps for the campaign can then be defined. The channels are then connected in the last phase for a “Delivery”. These are the four core functionalities of a CDP:
- Data collection: Individual customer data can be recorded in real time from several sources and is retained for as long as it is needed for processing.
- Profile standardization: Profiles can be consolidated at the customer level. This includes linking multiple devices to a single person for multi-channel marketing.
- Segmentation: CDPs offer the possibility to both create and manage rule-based segments and to map extended segmentation functions.
- Activation: In order to enable the execution of e-mail campaigns, for example, CDPs have the ability to send the segments created for campaign or channel activities to the connected e-mail systems.
The major players in software industry such as IBM, Salesforce, Oracle and Adobe now have their own solutions of CDPs on the market or in the way of preparation. The vendors are now recognizing that a CDP needs to store its own data. However, cynics might say that these software providers define user requirements based on what their systems are currently doing, not what users actually need. Different companies have to take a big step towards digital transformation and improvement of the customer experience. This way of gaining insight is increasingly maturing among decision-makers. In addition to generating sales, a successful digital transformation of a company is also largely measured by customer satisfaction. A comprehensive customer experience can only be achieved if data silos in the various specialist areas and the many touchpoints from past campaigns complement each other to provide a meaningful 360-degree view of the customer which CDP aims to solve.