Having in-depth knowledge of one’s users and customers, being able to analyze their behaviors and buying habits, and aggregating information and data from multiple sources, has always been the dream of every marketer, which is now achievable thanks to the use of Customer Data Platform. If in the past market research, interviews and theoretical models built through the collection of a limited amount of information, allowed very limited ways of profiling and segmenting one’s audience, this is no longer the case.
In the era of big data and artificial intelligence algorithms, people have finally overcome the fragmentation of information about their customers and users and have come to advocate a structured data-driven approach capable of guiding strategic choices and decisions.
The most significant contribution, in this context, has come precisely with the introduction and use of the Customer Data Platform, technological solutions that allow the aggregation and normalization of data about its customers and users from multiple sources and, above all, enable their effective and structured use.
But let’s proceed in order: what are the features of a Customer Data Platform, how does it work, and why can it be really relevant to an effective marketing strategy?
Customer Data Platform: definition
Let’s make it clear right away that, despite its name, a Customer Data Platform is not simply a data collection platform. Gartner gives a fairly generic and perhaps reductive definition of it, defining it as “a marketing system that unifies a company’s customer data from marketing and other channels.” What in fact is not apparent from this definition is the purpose associated with its use, which is to improve and streamline processes and activities within the company.
What does a customer data platform marketing do?
Among the main purposes of a cdp we can identify a few that are:
- a customer data platform enables the collection and centralization of data from multiple sources such as website, APP, eCommerce, POS, ticketing systems, etc;
- within it, the data are normalized at the level of the single customer view, so it is possible to have a complete, real-time view of the single contact that enables the design and deployment of omnichannel strategies;
- easily accessible, the use of a customer data platform does not require special technical skills so it can be used by different departments in the company;
- some customer data platform solutions, such as Blendee, also allow tracking and collecting data on anonymous users and integrate those from third parties.
Audienceprofiling and segmentation: the importance of the customer data platform
Collecting and normalizing data for a complete and in-depth view on the individual user: a Customer Data Platform is the cornerstone of a successful marketing strategy capable of putting the customer at the center. It in fact enables the collection of different types of data such as:
- biographical data
- Information on browsing behavior also in real-time
- data on purchasing behavior
- qualitative information
- data provided by external properties
As partly anticipated, all these data are collected at the level of the single customer view, that is, by means of a unique and unambiguous identifier that allows its storage and organization. All this is possible thanks to a business intelligence process, called data discovery, which, in very simple terms, has the main functionality of retrieving, selecting and organizing data from different sources, according to common patterns that allow their easy processing and analysis.
Users and customers no longer have any secrets: strategists and marketers now have a 360-degree view of them that enables accurate and dynamic profiling and segmentation.
What is the difference between a CDP, DMP and CRM?
The martech landscape, i.e., that relating to technologies applied to marketing, offers us numerous options and technological solutions, and the risk, at times, is precisely that of confusing them. This is precisely the case with Customer Data Platforms, which, in many circumstances, are confused with CRM and DMP. Let us, however, clarify and give some “substance” to these acronyms and see the differences between a customer data platform marketing, a dmp and a CRM.
A CRM (customer relationship management) system is a technological solution designed to help companies keep track of interactions with prospects, leads and customers. Here are some of its peculiarities:
- data and information are collected at the level of the individual user and can be used, through integrations and additional forms, for targeted marketing or commercial activities;
- first-party data and a more limited amount of information tend to be used.
Still different from a CDP is also the DMP whose acronym stands for Data Management Platform. Such platforms, in fact, are designed to combine and organize data about user behavior but are mostly used for advertising purposes to fuel the buying and selling of space. The ways in which Customer Data Platforms collect, normalize, and store data are offered are far superior to any other technology solution on the market, and what they enable is really the realization of a data-driven marketing approach.
What are the benefits of Customer Data Platforms
Having to briefly summarize the benefits associated with the deployment and use of a Customer Data Platform, we might note:
- In-depth knowledge and visibility into the individual user/client
- Centralized and simplified access to data
- Accurate and dynamic audience profiling and segmentation
All this translates into the possibility of implementing effective marketing strategies oriented toward personalizing the customer experience. Better performance, marketing campaigns and activities optimized according to the real interests and needs of its users and customers, strategies oriented toward the retention of its customer base, but not only that: thanks to the contribution of artificial intelligence and machine learning, it is possible to exploit the amount of data collected to develop predictive marketing strategies.
The result? You offer potential customers, both online and offline, the right product at the right time, engaging them with personalized messages and communications, while fully respecting their privacy.
