In the digital age, there are many technologies that help businesses reach a wide range of customers and keep up with the latest trends. However, with data spread across a large geographical scale, it becomes challenging to capture and manage customer data using outdated solutions. So, how can customer data be managed optimally and effectively, ensuring the utmost efficiency? The Customer Data Platform (CDP) tool has helped numerous large businesses streamline time and data statistics, enabling them to quickly identify the right potential audience and location trends.
Many people wonder what a Customer Data Platform is and why it offers numerous benefits that contribute to the continued growth of businesses. Let’s explore more about this topic through the following article, brought to you by The Ocean Wide Media Group!
What is a Customer Data Platform? Outstanding features of a Customer Data Platform
Customer Data Platform là gì?
Customer Data Platform is a dedicated technology platform for managing customer data. The primary function of a CDP is to collect, consolidate, and analyze data from various sources, including Online, Offline, and other data sources, to create a unified, accurate, and consistent customer information system. This enables businesses to effectively strategize and implement plans for their operations, resulting in the highest quality business activities.
Customer Data Platform is a part of Marketing CDP, used to optimize and serve marketing and advertising activities. With Marketing CDP, marketers have the capability to store and track information pertaining to the customer journey that has been identified within the system. Through this system, businesses can grasp a bulk of customer behaviors, interests, and needs without missing any important details. This helps businesses enhance the effectiveness of their marketing activities and build a more intimate and connected customer relationship.
Outstanding features of a Customer Data Platform.
Synthesis of the basic features of a Customer Data Platform:
- Aggregating, standardizing, and integrating information from diverse data sources (online and offline) enables staff members to easily access and utilize customer information for search purposes.
- Online: Website, email, social networks, as well as e-commerce sales channels,…
- Offline: Filling out information forms, staff requesting customer information, accumulating membership points…
- Helping businesses analyze and evaluate customer data, while also building a customer journey process from the initial approach to purchase until the customer becomes loyal.
- Automates marketing campaign deployment by integrating supporting tools, ensuring consistency and easy control throughout the process of implementing multichannel sales marketing
What are the benefits of a Customer Data Platform?
Integrating a system to synchronize information
A customer data platform is an automated and integrated platform that collects, stores, and manages customer information from multiple sources within a business. It enables businesses to effectively gather and organize customer data, creating a unified customer profile. This empowers businesses to easily access the CDP system, observe, and promptly update customer information, improving their overall customer data management strategy.
The ability to share data
A Customer Data Platform serves as a centralized hub for aggregating and managing customer data from various systems within a business. It allows teams from sales, marketing, and customer service departments to easily access and utilize this data. With a customer data platform, businesses can break down data silos, foster collaboration, and make informed decisions based on a comprehensive view of their customers.
This empowers teams to personalize interactions, target campaigns effectively, and deliver exceptional customer experiences, ultimately driving business growth. The customer data platform acts as a catalyst for seamless data utilization and collaboration across departments, ensuring that valuable customer data is leveraged to its full
Supporting marketing and sales activities
Marketers can gain a better understanding of the behaviors, needs, or preferences of individual customers and larger customer segments through the previously built customer data platform. This enables them to quickly stay updated on the latest customer trends and create effective marketing strategies, enhancing personalized experiences for each customer.
The Customer Data Platform supports the automation of marketing activities such as email marketing, chatbot usage, continuous monitoring and updating of customer behavior, and even integration with CRM systems. This feature helps ensure effective marketing campaigns and maintain a close relationship with customers.
Security and compliance with regulations
The CDP features robust internal management capabilities, ensuring high data security for customer data and compliance with legal regulations regarding the protection of personal information.
The differences between CDP, CRM, and DMP
The differences between CDP and CRM
CRM (Customer Relationship Management) is a customer relationship management system that involves the collection, storage, and consolidation of customer data, such as personal information, geographic location, purchase history, and interaction behaviors.
What are the characteristics that differentiate CDP and CRM, despite both having the ability to conveniently build customer profiles?
| CDP | CRM | |
|---|---|---|
| Regarding data scope | “CDP focuses on aggregating and storing customer information from a variety of sources, including both online and offline channels, as well as capturing anonymous interactions.” | CRM primarily focuses on collecting and managing information related to customer relationships and interactions with the business. |
| About the goal | CDP is primarily designed to support marketing activities, enhance customer experience, perform analysis, and forecast the next steps in marketing strategies. | CRM is typically used to manage relationships and interactions with current customers, supporting sales and customer service activities with the goal of building and maintaining customer relationships. |
The mentioned points demonstrate that CDP collects and consolidates customer data from multiple sources, while CRM focuses on managing customer relationships and interactions.
The differences between CDP and DMP
DMP (Data Management Platform) is a customer data management platform, similar to CDP. DMP allows for the aggregation of information from various data sources such as websites, online advertising, social networks, and conducts analysis on demographic information, interest, and customer behavior.
Here are some differences between CDP and DMP
| CDP | DMP | |
|---|---|---|
| Regarding data scope | CDP collects and unifies data from multiple sources, including online and offline channels, to create a comprehensive view of the customer | DMP, on the other hand, primarily gathers data from online sources such as websites, online advertising, and social media platforms, and the data in DMP is typically kept anonymous with a limited retention period, often around 90 days. |
| About the goal | CDP is commonly used for personalizing marketing activities and improving customer experience. | DMP is commonly used, especially in the field of advertising, particularly to support online advertising, including website advertising |
| Regarding data integration capabilities | CDP aims to integrate data from various systems and touch points within an organization to provide a holistic customer view. | DMP is more focused on integrating data from external sources to enhance advertising campaigns |
Based on the comparison from the previous statements, it is evident that CDP has the scope to collect data from both online and offline sources, while DMP specializes in gathering and analyzing audience data from targeted marketing campaigns and advertising sources online.
