Why CDP?

2022-05-12T15:27:37+02:00

A CDP is your ultimate Sales and Marketing Data Warehouse

It's a question everyone in the global sales and marketing arena will face this year and for years to come: why CDP? The Customer Dates Platform will revolutionize the way and speed at which we support the customer journey. All available customer information goes into the food processor to control sales and marketing tools. CDP is the answer to the strong need among sales and marketing professionals for an integrated and directly accessible data warehouse. This means that Ecommerce is entering the next phase.

But we already have a range of smart tools to record and analyze customer behavior and based on that, for example programmic advertising to deploy? And as Ecommerce entrepreneurs we have already invested in powerful Data Management Platforms (DMPs), so why CDP? Completely correct. But within existing systems, certain pieces of the puzzle are missing: coherence, overall insight, predicting and responding to real-time customer behavior with marketing automation techniques, for example. Only when all those puzzle pieces come together can you start the machine that supplies the mix of ingredients for the consistent personalization of the customer journey.

Why CDP has several answers

There is already a lot of customer information, but it can be used considerably more effectively than is often the case in Ecommerce practice. At the moment, data and marketing tools are often still intertwined via and export files from various sources. There is no real-time total insight and existing customer profiles are hardly actively linked to current customer behavior. Here it goes Customer Data Platform cause the fundamental shift. The most succinct answer to the question - why a CDP? - is therefore: a CDP is the ultimate data repository for your customer-specific sales and marketing strategy.

A CDP models, profiles and activates historical and real-time information of customers and prospects from different systems and sales channels, online and offline. For example, data comes from advertising systems such as Google AdWords and Facebook, data from email management systems and CRM systems. from all your Ecommerce systems and the POS systems and customer loyalty programs on the physical sales floor and information from web analysis tools all together in that one kitchen machine. That Processor is your smart and self-learning sales and marketing data warehouse.

Everything for personalizing and optimizing the customer journey

Everything that goes in on one side - personal customer data, demographic profiles, search and ordering behavior, transactions within the total omnichannel structure - comes out on the other side. In the form of processed data that drives all conceivable sales and marketing systems and tools. Think of the automatic generation of emails, push messaging, text messages, facebook messages, and so on. The emphasis is on sales and marketing campaigns and activations. In addition to your own sources, you can also connect external sources and even other data warehouses to your CDP. Everything with one goal: personalizing and optimizing the customer journey.

Differences between CDP and DMP or DWH

The difference between a Data Management Platform (DMP) and a Customer Data Platform (CDP) is that the first uses anonymous data, including via cookies, linked to static customer profiles. This mainly drives advertising campaigns. The information is only kept briefly. On the other hand, a CDP works with data that is recognizable and directly traceable to customer and contact actions. The customer information is constantly enriched and can be used on all fronts.

A CDP also differs from the traditional data warehouse (DWH). With a DWH you store large amounts of information, which you mainly use for analysis and reporting and to a much lesser extent for direct activation. Moreover, a DWH is mainly the domain of IT. Data is made available to sales and marketing. You will hardly get in without specific IT skills. A CDP is primarily the domain - say the holy grail - of sales and marketing. With a Customer Data Platform you have direct access to all customer information that is 'pre-processed' and is relevant to work on the personalization of the omnichannel customer journey with marketing actions and campaigns.

From why CDP? to which CDP?

Now the question - why a CDP? - broadly answered, other questions arise. Why can't I avoid CDP as an Ecommerce organization? How do I select a CDP solution that fits in all ways with my omnichannel strategy and existing tools and systems? All questions are welcome. After all, it is a serious step and investment. Use the shortest route and ask your questions through us Contact Form.

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