Customer data platforms, or CDPs, work to gather specific data about your customers browsing and purchasing habits with which to make detailed, individualised profiles. These profiles are then implemented into personalised marketing plans which are targeted at specific customers.
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How CDPs work
Because the goal is to create marketing plans specific to each customer, the number one job of a CDP is to collect as much data about each customer as possible.
By creating a detailed profile of an individual, a CDP can then create a prototype of an ideal customer. This prototype will then be used to market to and find other potential customers that fall into these similar categories, building up a clientele base.
How CDPs excel in marketing
CDPs can work with other marketing systems for the analysis and management of marketing campaigns. Because CDPs are highly intelligent systems, they can also provide suggestions for the next steps to take in a marketing plan for ways to interact with present and future customers.
CDPs are also highly intuitive and are built to be user friendly for people who aren’t well versed in technical programs. The collected data is easily retrievable and is displayed in a way that is easily readable.
How CDPs can be used in your business
With that said, let’s add some context on to how CDP can help your business:
- Heighten the customer lifetime value (CLV)
- Provide product recommendations
- Specific and retargeted advertising
- Optimization of conversion rates
- A/B testing
- Enhanced email deliverability
- Improved online reviews
- Automating omnichannel
CDP compared to marketing automation
While marketing automation manages routine tasks such as sending out automated marketing campaigns, CDP essentially builds on this by creating a personalized marketing experience with the right strategies for your customers.
