Jayaraj Pillai

Digital Marketing Specialist

What is a CDPCustomer Data Platform? That has been a question for most of the population. CDP is a packaged marketing software, often deployed as Software as a Service (SaaS) that provides customer data unification and identity resolution. It creates a single view of customers and to connect the unified data to other applications to improve marketing performance, optimize engagement, enhance analytics, compliance (CCPA / GDPR) and to get insights that drive personalized experiences and higher return of investments (ROI).

what is a cdp -  work-flow info graphics.
Customer Data Platform (CDP) work-flow info-graphics.

These are the seven key capabilities of a Customer Data Platform (CDP):

  • Unified Customer Data – collect data from any source with full detail of ingested data, resolve identities to create unified single customer view and storing all customer data in one centralized location.
  • Persistent Storage – Take new or updated data about a customer and continuously updating the unified profile over time.
  • Delivered as Packaged Software – Typically delivered as Software as a Service (SaaS).
  • Real-Time Capabilities – Ability to ingest real-time data, for example website click stream, IoT data, edge devices.
  • Data Activation and Open Access – Provide open API driven (vendor neutral) access to the data from other systems and applications.
  • Segmentation – Rule and machine learning based segmentation
  • Support Privacy Compliance – Provide support to comply with privacy laws such as GDPR and CCPA.

What is a CDP – Customer Data Platform?

A Customer Data Platform (CDP) is a marketing software that unifies and activates a company’s customer data from all sources and channels, then it allows the company to use unified data to create personalized experiences for each of their customers.

What does a CDP do?

A Customer Data Platform (CDP) unifies data from multiple sources in real time to a create unified longitudinal customer record, stores it in a big data store and makes the unified data available for other systems and applications. CDP’s often use machine learning and AI to create insights from the unified data and to resolve customer identifies.

How does a CDP work?

CDP’s has built in connectors to ingest data from various data sources (E.g. CRM, Website, eMail Service Provider (ESP) etc.) Ingested data is unified using open source schema like Common Data Model (CDM) and stored in a big data store (e.g. Data Lake, Document Databases). CDPs provide capability to connect segments to other platforms, apps and systems such as email, mobile apps, social media and websites etc.

What is the difference between CDP and DMP?

Both are marketing software in which CDPs focus on first party data and DMPs on 3rd party data. CDPs have a broad marketing scope while DMPs are focused on advertising. CDPs store and manage PII for a long time (Personally Identifiable Information like email, name, phone number etc.) and DMPs store anonymized identifiers like cookie ID for a shorter period of time.

Does salesforce have a CDP?

Salesforce is a two decades old B2B CRM that was never built for today’s digital consumer age. Salesforce does have a CDP it’s primarily built for very narrow use cases.

WHAT IS NOT A CUSTOMER DATA PLATFORM (CDP)?

  • CRM – A CRM is a transactional system and CDP is an analytical system
  • DMP – DMPs are used for advertising with short term storage for unidentified 3rd party data, it’s not a CDP.
  • Custom Integration – They are not CDPs because they don’t offer real data unification for analytics, segmentation and don’t have persistent storage.
  • Data warehouses – A data warehouse is an infrastructure component that supports a CDP, typically don’t have real-time capability and the users are technical people, not marketers.

We hope this helps. Please reach out to us with any questions or a free trial or demo of SkyPoint Customer Data Platform (CDP).

Categories:

  • CCPA
  • Compliance
  • Customer Data Platform
  • Data Privacy
  • Data Strategy
  • Digital Marketing
  • GDPR
  • Machine Learning
  • Marketing
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