How Does A Customer Data Platform Help to Transform Your Business?

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By: Sagar Sharma

How Does A Customer Data Platform Help to Transform Your Business?

The customers try to reach their product of interest through various touchpoints and interactions by using the different channels. A lot of data gets generated and collected that is related to various operations, processes, products, sales, and marketing, customers, etc.

For any enterprise, customer data is very important as it plays an important role in improving customer engagement that can lead to increased sales and growth in business. The different data available related to the potential customers include transactional data, demographic data, behavioral data, etc.

A better understanding of the customers leads to providing improved services to the customers helping to build brand confidence.

What is a Customer Data Platform (CDP)?

It is important to use the Customer Data Platform (CDP) tool for the collection and integration of customer-related data from various sources. This tool enables the creation of a consistent, persistent, and unified customer database.

The details stored using this tool provide a deeper understanding of their customer preferences. This helps in delivering customized experiences to the customers.

It allows the organization to have improved interaction with the customers. The CDP proves a unified solution for customer data as it collects the data from the various channels used to interact with potential customers.

Even if the customer interacts with the different channels or touchpoints, CDP allows for collecting the data together to get a complete overview of the customer interaction with the product. This helps in reducing the confusion as may be created by using the older siloed method.

How Does Customer Data Platform Work?

CDP collects the data from the different customer interactions and further analyses, monitors, and manages these details. The different details aggregated using the CDP include the demographic details, behavioral details, browsing data, product usage, event data, etc.

These details allow the enterprise to target specific audiences by providing customized products and services. It also allows for getting feedback and queries from the customers that will help in efficient product development with improved features.

Understanding the shopping trends of the customers will help the business to approach the customers effectively and prompt them to make their purchase through various options like mails, messages, notifications, etc.

CDP allows for consolidating the data from the different data points for generating the customer profile that can be useful for other systems like advertisement platforms and prompting them to make their purchases. The primary functions of the CDP include management of customer data management and customer data activation

Capabilities of Customer Data Platform

There are different features that a CDP should include to achieve the larger organizational goal of efficient collection of customer data. The business organization should look out for the various capabilities in the customer data platform. The core capabilities of CDP include:

Data unification

Implementing CDP allows for bringing together the customer details across the different channels used for marketing and creating a single view of entire customer details. This is an essential element of CDP that helps in determining the effectiveness of all the various product features.

The strong data unification capability of the CDP allows for the effective collection of data and matching. It includes the use of advanced techniques like machine learning and artificial intelligence.


The CDP allows for analyzing the customer data and generating customer insight. It is important for understanding the behavior and needs of the customer. Using data-based intelligence directly impacts the ability of the organization to provide the best customer experience.

It allows the organization to gain insights, enhance capabilities, and build audiences while staying bound to the permission and governance controls.


Implementing the CDP provides the ability to gauge the customer experience across the various touchpoints. It allows for the harmonization of all the data available from the different channels that allow interaction with the customers.

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


The CDP implementation allows integration with the existing application and tools in the technical stack and others that can be useful in the future. CDP allows scalability to handle the increased number of customers efficiently.

It allows for computing segmentation, activation, and predictive analysis of larger data. It connects the different systems within the organization for efficient working like sales, marketing, services, etc.

Benefits of Customer Data Platform

Implementing the Customer Data Platform is advantageous to the organization in many different ways.

Understanding of customers

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

This understanding enables the enterprise in delivering personalized experiences to the customers. The deep insights obtained from the analysis have a drastic impact on the revenues. It has the potential for providing real-time data for leading in the competitive business by fulfilling its customers’ needs.

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.

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.

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.

Create segmentation

CDP allows for segmentation that provides a personalized user experience. CDP enables the segregation of the users based on the different segments based on various factors like demographics, seasons, trends, etc., which helps improve customer engagement.

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.

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.

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.

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.

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.

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.

Respect customer privacy

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

Data consistency

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

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.

Improved personalization and customer targeting

CDP ensures that the customer gets the relevant updates regarding the product of their interest at the proper time and in an adequate manner.

Data centralization

It enables the organization to keep all the customer-specific data at a centralized location that can be accessed by the different teams.

Finding a new audience segment

The centralized customer information allows the organization to segment the details. Applying the analytical techniques helps in 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.


The cost of storage of the data on the cloud depends on the amount of data collected and stored using the application. As the CDP is a platform and not an application, it reduces the cost. This makes it possible for the organization to handle customer details at an economic rate.

Reduction in loss due to third-party cookies

Using the advanced techniques of artificial intelligence and machine learning for the collection and processing of the data leads to reduced dependencies on the third party. It allows for tracking the customer journey and for reaching out to the target audiences.

How to Choose the Right CDP Platform for your business?

There are different steps involved in the selection of the right Customer Data platform for the business including:

Involving the stakeholders

CDP allows for the coordinated working of the different teams within the organization. The selection of this tool depends on how it helps in handling the data from the different departments within the organization.

Some teams might use the customer relationship management (CRM) tool for data storage while CDP for data assessment. Thus all the stalk holders should be included in the discussion.

Define cases

The selection of the CDP tool depends on its ability to do the various defined tasks that include understanding the customer journey. It should be able to create a more personalized experience for the customers. CDP should be capable of targeting multichannel advertising campaigns, combining the data received online and offline.

Use of different tools

There are different tools required for handling the different types of data within the organization. It is also important to understand which are the tools used by the potential customers for connecting to the product.

These different tools include Google Analytics for analytics, Facebook, Instagram, and other social sites as advertising tools, an intercom for connecting with the customers for live chats and discussions, etc. The CDP should be able to integrate with these tools effectively for the proper functioning of each of these tools.

Gather the requirements

The next steps involve collecting the information regarding Compliance with the GDPR and CCPA, Allowing gaining a full view of the customer journey, should provide high-level security while handling the customer data, costing for the different CDPs, etc.

Vendor comparison

As the organization gets the list of the vendors that provide the CDP, the organization should check the CDP for its integration with the different applications for their effective working, checking if the CDPs meet the requirements set by the organization, considering the features provided by the CDP and how these are useful for the organization for handling their data. Considering the pros and cons of each of these CDPs is essential for making the final selection.

Adequate return of investment (ROI)

The organization must consider the ROI while evaluating the CDP while making the selection. The CDP should not be too costly and also the organization should not compensate for the cost with the features and other essential parameters required by a standard CDP.


Understanding the customer is very essential for improving the customer relationship. This will provide insights for product development based on customer needs and demands. Different tools like the customer data platform (CDP) are useful for managing the data related to the customers based on their behavior, demographics, shopping history, etc.

Various interesting features of this CDP prove to be beneficial to the organization. The organization can select the best suitable customer data platform from the available options considering their pros and cons. The organization needs to understand its needs before selecting the CDP tool.

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