How Customer Data Platform (CDP) Impacts Businesses

StartUp City | Friday, February 15, 2019

CDP in businessA CDP system centralizes customer data from all sources, unifies these data into customer profiles, and then makes these data available to other systems for marketing campaigns, customer service, and customer experience. With CDP in place, companies will find it easy to retain its existing customers and to find new customers who are most likely buy their products and help in promoting their brand further. A CDP gathers information from several sources such as websites, mobile apps, and email platforms to offer a complete view of the consumer. With the help of this data, a CDP then helps organizations predict the probable move of a particular consumer. This allows businesses to prepare strategies in order to retain specific customers.

The AI and machine learning technologies help to create a single customer view database generated from various sources. This database helps companies to prepare targeted sales and market strategies.  The CDPs ponder on the CRM system that generates the marketing-related data which is prepared for the marketing automation purposes. The CDP prepared with productized vendor integration and agile data model is gaining more importance across many companies in the present days. The CDP software determines the best moments to suggest useful tips for engaging customers. More marketing systems are designed to export and import data via APIs and micro-services easily. CDPs do not need to copy all customer data physically to their data storage. Before applying the CDP, an enterprise has to develop a comprehensive Customer Data management (CDM) to investigate and document the use of customer data by different departments within the organization. This helps to identify the users and determine the analytics, reporting, and compliance requirements.

Check out:Top Customer Service Startups 

Furthermore, organizations have to ensure that the data platform can grow and adapt to changing business requirements. Just as few marketing clouds adopt a walled-garden approach that sometimes obstructs innovation in marketing, the selection of the wrong type of CDP will also hamper innovation. However, companies should take it as an opportunity to select the right CDP to serve as an appropriate ability to use customer engagement for both the customer and the marketer with the help of technologies such as predictive analysis, AI, and blockchain.

Check out: Top Customer Data Platform Solution Companies

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