Marketing Success with Customer Data Platforms (CDPs)

In today’s hyper-connected digital landscape, marketers are constantly seeking ways to understand and engage with their customers more effectively. One technology that has gained significant traction in recent years is the Customer Data Platform (CDP). But what exactly is a CDP, and how does it empower marketers to achieve the elusive ‘single view’ of their customers?

What is a CDP?

A Customer Data Platform is a marketer-managed system designed to collect customer data from various sources, normalize it, and create unified profiles of individual customers. Unlike traditional data management systems, a CDP focuses on providing a persistent, unified customer database that can be shared across different marketing technology systems.

The rise of CDPs

The interest in CDPs has surged over the past few years, with a 32% increase in marketer interest between 2021 and 2022, according to Gartner. This growth can be attributed to several factors, including the growing importance of customer experience, the decline of third-party data, and the need for privacy-compliant data practices.

Key features of CDPs

    1. Unified customer database: CDPs create a single view of the customer by consolidating data from various touchpoints into unified profiles.
    2. Data control: Marketers have control over data collection, segmentation, and orchestration without heavy reliance on IT or developers.
    3. Integration: CDPs integrate both known and anonymous customer data with external platforms like CRM, POS, mobile, website, and marketing automation tools.

Types of CDPs

CDPs can be categorized into different types based on their primary focus, such as data, analytics, campaign, and delivery CDPs. Each type offers distinct capabilities tailored to specific marketing needs, from data management to personalized campaign orchestration.

Benefits of using a CDP

    • Expanded collaboration: CDPs facilitate collaboration across departments by unifying data and supporting customer interactions across multiple touchpoints.
    • Improved data accessibility: Centralized data hubs enable easy access to customer information, leading to better-informed marketing strategies.
    • Streamlined integration: CDPs unify data systems, reducing redundancies and errors while improving data flow across marketing platforms.
    • Increased efficiency: Automation of manual tasks frees up marketers to focus on strategic initiatives, leading to more accurate targeting and personalization.
    • Faster marketing velocity: Marketers gain control over data processes, reducing dependency on IT and accelerating campaign execution.
    • Regulatory compliance: CDPs ensure data governance and compliance with regulations like GDPR, CCPA, HIPAA, and more, bolstering customer trust and brand reputation.

In essence, Customer Data Platforms empower marketers with actionable insights, streamlined processes, and enhanced customer experiences. As businesses navigate the complexities of the digital age, leveraging CDPs becomes not just a strategy but a necessity for sustainable marketing success.

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