Customer Data Platforms: What It Is and Isn’t
Customer Data Platforms: What It Is and Isn’t
What is a Customer Data Platform (CDP)? - Every organization defines CDPs in a different manner mainly including or excluding certain features. Within our teams, we define CDP as a centralized, cloud-based solution that helps organizations understand their customers and enable personalized, consistent & real-time experiences across marketing, sales, and service channels. A customer data platform (CDP) is one of the most essential tools being adopted across B2C as well as B2B industries in the last several years. CDPs become even more relevant to be able to cover the use cases which are generally enabled using third-party cookies.
Since the internet has taken over our lives, the digital world has accelerated at a fast pace. Is there a solution supporting this pace? Since the internet has taken over our lives, the digital world has accelerated at a fast pace, transforming the way we do business. The COVID-19 pandemic acted as a catalyst to revolutionize the digital transformation and eCommerce trends across industries, and added an increased emphasis on strengthening organizations’ eCommerce strategies, something I discussed in my last Forbes Technology Council article.
Personalization is one of many use cases which can be enabled when organizations understand their customers and predict their current states of mind, their needs, and the timeframe of their needs. To achieve this, it is essential to be able to utilize the owned and borrowed customer data (1st party, 2nd party, and third party) and to apply modern data analytics techniques to be able to deliver highly personalized and relevant marketing messages at the right time.
With the ever-increasing competition to gain customers’ attention, Personalization is no longer a ‘nice to have’ tactic in today’s marketing & sales communication. From better sales, and higher retention, to stronger customer loyalty, personalization delivers better outcomes & conversions for businesses. It is essentially a specialized data management system having all the technical & functional capabilities.
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