Customer Data Platform (CDP): What is it, and why do businesses need it?

Customer Data Platform (CDP): What is it, and why do businesses need it? Let’s explore these questions in this article.

Customer data stands out as one of the most valuable assets for businesses. The greater the volume of customer data collected, the deeper the understanding of customers, leading to increased awareness and sales generation.

However, with the accumulation of customer data comes the challenge of complex data management and utilization. In this article, Sertis aims to guide you through a Customer Data Platform (CDP) solution designed to effectively address the challenges associated with storing and managing customer data, a valuable business asset. The CDP ensures that customer data is appropriately handled and ready for efficient utilization. Moreover, CDP offers additional benefits to businesses.

Let’s delve into understanding CDP and explore its various advantages for businesses.

What is a Customer Data Platform?

A Customer Data Platform (CDP) is a tool designed to assist businesses in collecting and centralizing customer data, organizing it, and creating individual customer profiles. CDP enables businesses to easily access, manage, and utilize customer data, providing deeper insights into their customer base.

Each customer profile within a CDP contains detailed information on behaviors, preferences, activities, transactions, and interactions across various channels. This makes CDP an essential tool for crafting personalized marketing campaigns.

Therefore, CDP is suitable for all industries, including retail, banking & finance, manufacturing, and others that require organized and readily accessible customer data.

What are the functions of a Customer Data Platform?

• Collect and centralize data from various sources: CDP can gather and centralize customer data from diverse sources, including websites, applications, social media, emails, and other CRM tools.
• Organize and connect customer data: Information about a customer may be scattered across different channels. CDP organizes and connects all pieces of information, centralizing data and reducing errors and duplications.
• Create customer profiles: CDP is capable of constructing detailed customer profiles, incorporating demographics, behaviors, preferences, and activities. This enables a comprehensive view of customer profiles that can be easily utilized.
• Real-time updates: CDP ensures customer profiles are updated in real-time according to changes or new activities promptly and provides access to always-current customer data.
• Perform segmentation and targeting: Leveraging comprehensive customer data, CDP can efficiently execute segmentation and targeting strategies, facilitating the execution of marketing campaigns.
• Customer behavior analysis and prediction: CDP aids in the analysis of customer data, offering insights into preferences and behaviors. Additionally, it can predict customer behaviors, such as purchasing decisions and churn, based on historical data.
• Integrate with other platforms: CDP can seamlessly integrate with various platforms, including marketing tools, social media, emails, e-commerce platforms, and databases. This integration allows for smooth collaboration and data exchange.

How does a Customer Data Platform benefit businesses?

• Gain comprehensive understanding of customers: CDP gathers scattered customer data and creates individual customer profiles, enabling businesses to develop comprehensive insights into their customer base.
• Organize customer data: As businesses accumulate more customer data, the need for effective storage and management increases, introducing the risk of errors such as duplications and incomplete data. CDP innovatively organizes and stores data, executing real-time updates with new inputs, thereby reducing errors and providing organized and readily available customer data.
• Increase efficiency in personalized marketing: Ownership of complete and profile-based customer data facilitates more effective personalized marketing, accelerating and enhancing the delivery of personalized messages.
• Facilitate marketing campaigns: CDP creates individual customer profiles that facilitate segmentation and targeting, enabling easier and faster execution of marketing campaigns, including retargeting, omnichannel marketing, and suggesting next-best offers.
• Reduce marketing costs: Leveraging CDP to gather and analyze customer data allows businesses to make informed decisions on marketing campaign investments. This increases efficiency and the likelihood of success while reducing the costs of ineffective campaigns. CDP helps achieve a more cost-oriented and favorable return on investment (ROI).
• Strengthen data safety: Data safety is a critical concern, especially when dealing with sensitive customer data. CDP centralizes all data, making it easy to monitor and enhance safety measures, contributing to building a trustworthy image for a business.
• Protect data privacy: CDP can be integrated with solutions that manage data privacy consent. It can appropriately seek consent before collecting data, organize data based on sensitivity, and ensure compliance with policies like PDPA, preventing potential future problems.

Sertis is a leading data and AI solution provider in Thailand. Specializing in the design and development of customized Customer Data Platform, we tailor our solutions to meet the specific needs and requirements of businesses. Leveraging advanced AI technology, our intelligent solutions are designed to save time and resources, enhance efficiency, and ultimately drive increased sales for our clients.

Learn more about Sertis’ solutions: https://www.sertiscorp.com/solutions