Benefits of customer data platform for eCommerce Online Business?

Do I Need a PIM?

By: Manish Shewaramani

How Does Customer Data Platform for eCommerce Benefit Your Online Business?

Digitalization has increased the competition in the business world and every enterprise needs to stay ahead of its competitors and attract potential customers. Businesses need to understand their customers’ needs and requirements.

The customer data is crucial as it helps to gain the reviews for the product that is essential for product development and to provide an improved customer experience. There are various tools implemented by the business that help them to collect the data related to their customers related to shopping history, behavioral trends, etc from the different channels.

What is a Customer Data Platform (CDP)?

The enterprise needs to stay updated with its customer details to provide the best possible service. The customer data platform (CDP) is the tool or application that helps the marketing team of the enterprise for the collection of the available customer data and aggregates it to form a single database.

The customer data platform for eCommerce allows the enterprise to aggregate the customer data related to the different parameters that include:

  • Translational data related to past purchases
  • Browsing history
  • Behavioral data
  • Demographic data
  • Product usage data
  • Product reviews along with event data that include information regarding file downloads and clicks
  • Third-part or partner data, etc.

This data acts as a cornerstone of product marketing and helps in collecting the customer data for campaigning, segmentation, product customization, enhanced customer-journey management, data analysis, product development, improved marketing solutions for online advertisement, real-time personalization, etc.

The CDP collects the data from multiple sources across the different channels, integrates it, and allows for the creation of a unified and persistent customer database that has a deeper understanding of the customer preferences.

These details help the enterprise to provide customized experiences to their customers thus, improving the customer relationship and customer satisfaction.

How Does Customer Data Portal Work?

It works by collecting customer-related data from different sources like the marketing channels, CRM interactions, service software, marketing cloud systems, etc. This helps in generating the customer identity resolution.

With these details, it enables the enterprise in getting customer-related details like email addresses, physical locations, behavioral and demographic information, etc. This helps in building the link between the customer and their interaction with the business.

The unified database provides real-time data that allows for immediate response based on the customer needs and can deliver tailored products and experiences for improving the customer relationship. The different purposes served by implementing the customer data platform for eCommerce include:

Customer data management

It provides the ability for controlling the data flow and enables the marketers to effective management of first-party data, data rights, and consumer privacy. It helps the organization to meet the regulations set for consumer and data privacy.

Customer data activation

It allows the organization to use the details for the customer interaction for creating the targeted marketing campaigns.

There are different processes followed by the customer data platform for efficient data management. These processes include:

  • Collection of data
  • Unification of records
  • Creating profiles
  • Segmentation of audiences
  • Providing insights and predictions
  • Orchestrate omnichannel action
  • Testing and measuring results

Capabilities of Customer Data Platform (CDP)

The main core compatibilities and foundational components that form the key components of the complete customer data platform can be broken into four major areas that include:

1. Unification

This allows for bringing together and matching the customer behavior details across the different online and offline channels used for marketing for creating a single view of entire customer details.

It is one of the most critical elements of CDP that determines the effectiveness of all the various product features. The strong data unification capability of the CDP allows for effective data collection and matching. This makes the use of advanced techniques like machine learning and artificial intelligence.

2. Analysis

The CDP allows analysis of the customer data and helps in generating the customer insight that is made readily available to the different individuals or teams that require these details. It also enables augmenting human intelligence with artificial intelligence.

It is of utmost importance to understand the needs of the customer. Using data-based intelligence directly impacts the ability of the organization to provide the best customer experience.

Using advanced analytics helps in an efficient understanding of customer behavior. It allows the organization to gain self-service insights, activate capabilities, and build audiences while staying bound to the permission and governance controls.

3. Activation

Implementing the CDP provides the ability to orchestrate, measure, and test the customer experience across the various touchpoints. It allows for the synchronization of all the data available from the different channels that allow interaction with the customers.

Orchestration helps in defining and prioritizing the customer journey considering both the online as well as offline channels. CDP allows for running multidimensional tests for measuring the impact on business growth.

4. Infrastructure

The CDP implementation provides a high-performing, scalable, and secure backend that allows integration with the existing application and tools in the technical stack and other additions that can be done in the future.

Implementing the CDP allows scalability to handle the increased number of customers efficiently. It allows for computing segmentation, activation, and predictive analysis of larger data.

It enables the connection of the different systems across the organization for efficient working like the sales, marketing, services, etc. It also enables the enterprise to remain compliant with the emerging standards that are essential for the certification.

Difference Between a CDP, CRM, and DMP

The CDP, CRM, and DMP are all similar to each other as all are responsible for the collection and storage of the data related to the customers. Still, these terms have certain differences like:


CDP stands for Customer Data Platform. These focus on the marketing as it allows for communication with the known audiences, It makes the use of PII and first-party data, it makes use of the existing customer base for retention, conversion, and engagement marketing.

It helps the enterprise to keep the user data in one place and implement it for personalized marketing across different channels.


CRM is an abbreviation for Customer Relationship Management. The CRM is similar to DMP but cannot handle multiple types of data. It needs help from the sales team to manage its accounts and cannot be scaled efficiently.


DMP is known as a Data Management Platform. It allows for focusing on advertising and communication with unknown audiences. These leverage third-party data for providing the information. DMP helps in improving the display and targeting.

Benefits of Customer Data Platform for ECommerce

There are several benefits gained by the enterprise by implementing the CDP in their organization. Take a look at what a customer data platform CDP offers to e-commerce and how it optimizes its operation.

1. A better understanding of customers

Customers play a major role in the growth and development of the business. Thus is essential for a business to understand the needs and requirements of their customers for providing them with a better experience.

Understanding the customers enables the enterprise in delivering hyper-personalized experiences to them. It also provides deep insights that will drastically impact the revenues. It has the potential for providing real-time data for staying ahead in the competitive business for fulfilling its customers’ needs.

2. Provide a seamless cross-channel experience

Centralizing the customer data at a single location allows the different teams to access the same data and makes it easier for working in collaboration. This makes it possible to provide a seamless experience across the different channels that are used for engaging their customers.

3. Reduce the risk of data misuse and improve customer trust

It is important to protect customer-sensitive data while collecting and sharing their personalized experience exchange. Implementing CDP enables gaining valuable insights without affecting the privacy of the customers’ secure details.

4. Provides the 360-degree perfect view of the customer

Implementing the CDP allows the organization to collect all the possible details about their customers thus understanding them the behavioral trends, demographics, etc. These details enable the organization in providing a personalized experience to their customers for the growth of their business.

5. Create segmentation

The customer data platform for eCommerce allows for segmentation that provides a personalized user experience. CDP enables segregation of the users based on the different segments based on various factors like demographics, seasons, trends, etc. which helps in keeping the customer engaged.

6. Personalization using AI

The data unification helps in predicting future market trends by analyzing the different sources and drawing patterns based on the users’ past experiences and actions. This will enable the business to get future insight before the customer thinks about it.

7. Unification of data from the marketing channels

The data unification from the different marketing channels allows for adequate segmentation of the users and distribution on the different destinations for marketing on the channels like social media, Facebook, Instagram, Google Analytics, etc. It enables sending real-time data from the website to potential customers.

8. Generating reports

The CDP enables in generating the tailor-made reports considering the critical metrics essential for taking strategic decisions. These details are useful in optimizing the product campaigning in the future for improving the business.

9. Increasing the revenue

Customer engagement increases when the enterprise provides them with personalized content. This increases the faith and trust of the customers in the brand and business. This increased customer engagement leads to increased revenue generation. It keeps the customers motivated to make increased purchases by providing advertisements, offers, and discounts.

10. Decreasing product abandonment

Providing personalized services to the customers leads to increased engagement leading to increased sales. Personalization leads to a decrease in cart abandonment as the product is designed or developed based on the requirement of the customer.

11. Improved customer interaction

It serves as a platform for engaging the customers. It allows for monitoring the customer behavior and based on it interacting with them and prompting them to make the product purchase.

12. Respect customer privacy

Implementing the customer data platform for eCommerce enables the enterprise in collecting customer data while respecting customer data privacy. It allows the enterprise to stay compliant with the data privacy law while providing customized services to its customers.

13. Consistency

It allows for delivering a consistent experience to the customers for the product across the different channels and devices used for the sales and marketing of the product.

14. Simplification of the customer journey

It allows for dealing with complex customer journeys as it enables handling the high volumes of customers and multiple sites of interactions across the different touchpoints.

15. Improved personalization and customer targeting

This ensures that the right customer gets the relevant message regarding the product of their interest at the right time and in a proper manner.

16. Finding a new audience segment

Having centralized customer information allows the enterprise to segment the details and apply the basic and advanced analytical techniques for finding new possibilities for attracting audiences.

It allows the marketers to divide the customers into various segments like location, gender, age, etc., and target the specific crowd with a more specific and customized message.

17. Cost-saving

The cost of storage of the data on the cloud depends on the amount of data stored using the application. As the CDP is the platform and not an application, there is a reduction in the cost making it possible for the organization to handle customer details at a reduced cost.

18. Reduce the effect of loss due to third-party cookies

Implementing the use of artificial intelligence and machine learning techniques for collecting and processing data reduces the dependencies on third-party data. It allows them in tracking the customer journey and reaches the target audiences.

Bottom Line

For the growth of the business in this competitive world, the organization needs to have a 360-degree view of its customer details. The implementation of the customer data platform for eCommerce will help them in aggregating the data to have the details about their customers.

This allows for the collection of details from the different platforms used for the marketing and consolidates to provide a holistic view of their customers. It allows optimization for the personalization of the customer journey.

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