CUSTOMER DATA PLATFORM, THE FUTURE OF THE CUSTOMER RELATIONSHIP
CDP, Customer Data Platform’s acronym, is a word more and more heard in particular in the conferences martech in France. You will tell me that it is another far-fetched term, invented by marketers to impress the novices.
Let’s try to understand what is a CDP?
It is a management platform of the data allowing to centralize and to store the set of the data customers of the company. It exploits essentially first party data on-line but also offline (collected directly with the customer), often strengthened by third party data (supplied by advertising agencies, datum specialists or by means of procedures in the data exchange marketplace), to provide a personalized experience to customers via the various channels of interaction.
Thus, the CDP is a marketing tool above all. It must be used by marketers before any, with a minimum of assistance of the DSI.
How does it work?
The CDP is a kind of software online or stored on the private servors of the company with a set of connectors (API) which allow to download the data from the company softwares (CRM, Email marketing, ERP, Web site, etc.).
The data collected by the CDP are unified by the platform (deduplication, joints, enrichment) and stored in data tables.
At the end of the day, the marketing teams can search, sort out and segment the data to identify groups of customers sharing relevant similarities and plan effective actions.
What’s the difference between the CDP and the DMP?
Contrary to CDP, DMP does not offer multi-channel vision. The DMP focuses on the programatic and the management of cookies. Even if the DMP real time processes data treatment, it remains very oriented to the volume of the data while the CDP values the quality of the data and customer knowledge.
Moreover, I have heard that cookies live their last crumbs…
The fault, at first, in a statutory context which changes – the RGPD came into effect on May 25th of this year, then the regulation e-privacy should also appear in 2019. By hardening the conditions to collect the consent, both are considerably going to limit the specialists targeting the cookie-based audience.
Thus, several reasons explain the disappearance of the basic resource of the DMP.
That’s why the already collected data, the OWNED, become some oil and represent a safe bet for marketers.
Indeed, once these data are stored cleanly in the CDP, they allow the marketing team to make filters, to sort out and to segment the contacts in distinct clusters.
Then, the CDP helps to predict the prospects and the customers behavior. So marketers can use those predictions to send messages that are going to engage prospects to an hyper personalized purchase process.
However, we must remember that just like the DMP, the CDP remains a simple tool which has to come to support a real data strategy defined beforehand.
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