A Quick Guide to Customer Data Platforms - Appier

How Is a CDP Different From CRM Tools and DMPs? Like CDPs, customer relationship management (CRM) tools and data management platforms (DMPs) ... Blog CampaignOptimization CustomerExperience DataScience&AI DigitalAdvertising MarketingAutomation Personalization CampaignOptimization CustomerExperience DataScience&AI DigitalAdvertising MarketingAutomation Personalization Goback AQuickGuidetoCustomerDataPlatforms 2020/05/22 5minread DigitalAdvertising CustomerEngagement Tosolvetheproblemofdisconnecteddatainaworldwherewearedealingwithmillionsoftouchpointsandinteractions,51percentofmarketerssaytheycurrentlyuseacustomerdataplatform(CDP)and35percentsaytheyplantouseone.So,whatexactlyisaCDP,whatbenefitsdoesitoffer,andhowdoesitcomparetoothercustomerdatasystems?   WhatIsaCustomerDataPlatform? Acustomerdataplatformisatypeofsoftwarethatcollectsandorganizesdatafromawiderangeoftouchpointsinrealtimetocreateindividual,unifiedcustomerprofiles. CDPscanalsocommunicatewithotherdeliveryandengagementsystemssuchasmarketingautomationsoftware,websites,andsocialmediamanagementtools.Thismeansitispossibletoplanandexecutecampaignsdirectlyfromthem. Somecustomerdataplatformsalsohaveadditionalfunctionsbuiltin,suchasbusinessintelligence,analytics,reporting,andtracking.Theirultimatepurposeistohelpbusinessesandmarketersmakebettercustomer-focuseddecisions. WhatTypeofCustomerDataDoesaCDPWorkWith? Acustomerdataplatformcancollectandworkwithmultipletypesoffirst-,second-,andthird-partycustomerdata.ThisincludesdatafromyourCRMactivities,webforms,website,apps,socialmediaactivities,e-commercesite,customerservicecalls,andevenin-storeinteractions. Thesespecifictypesofdatacanbefiledintofourbroadcategories:Demographicdata,behavioraldata,transactionaldataandqualitativedata. Demographicdata– Thisincludesidentity,socio-economicanddescriptivedatasuchasage,gender,population,race,income,location,education,employment,socialprofiles,andhobbiesandinterests. Behavioraldata– Thisisgeneratedbyonlinecustomerinteractions.Itincludeswebsiteclicks,productviews,socialmediaengagement,emailopenandclick-throughrates,andcustomerservicecommunications. Transactionaldata– Thiscomesfromexchangesorinteractionsbetweenacustomerandacompanysuchaspurchases,returns,subscriptionsandabandonedcarts. Qualitativedata– Thisincludesinformationmadeavailablethroughformsandsurveys.Itcollectsmotivations,opinionsandattitudesexpressedbycustomers,suchaswhytheychoseyourproductoverothers.   HowIsaCDPDifferentFromCRMToolsandDMPs? LikeCDPs,customerrelationshipmanagement(CRM)toolsanddatamanagementplatforms(DMPs)alsoaggregatecustomerdataforyourorganization.However,theyworkdifferentlyandservedifferentpurposes.Herearesomeofthekeyfeaturesofeach:  Automaticallycreateunifiedcustomerprofiles Collect(mainlyfirst-hand)customer-specificdata(e.g.,names,addresses,emails)onanonymousandknownvisitors Analyzecustomerbehaviorandjourneys Trackonlineandofflinecustomerbehavior Builtforscaletohandlemultipledatapointsefficientlyoverlongperiods  Integratewithmultipleothersystems CRMs Trackcustomers’interactionswithyourcompany Onlycollectdatafromknownorpotentialcustomers Analyzesalesforecastingandpipelining Can’tcollectofflinedataunlesscollectedmanually Builttoengagecustomersnottoingestvastamountsofdata Limitedintegrationwithothersystems DMPs Automaticallycollectdatamainlyforadvertising Mostlycollectthird-partydata(e.g.,throughdataprovidersandservices) Reflectanonymouscustomeridentities(e.g.,cookies,devicesandIPaddresses) Onlytrackonlinedataviaaserver Builttoretaindataforashortperiodtotargetadsandbuildlookalikeaudiences Integratewithothermarketingsystems  WhatAretheBenefitsofaCDP? CompaniesusingaCDParemorethantwiceaslikelytohavesignificantlyoutperformedontheirmainmarketinggoalforthepreviousyear.Herearesomeofthereasonswhy:   TheyMakeDataAccessible  Bycollectingandunifyingcustomerdatafrommultipledatasources,aCDPmakesalldataaccessibletoothersystemsandbusinessfunctions.Thisincludesmarketing,management,salesandcustomerservice. TheyOffera360DegreeView CDPsofferatrue360-degreecustomerprofile,orsinglecustomerviews–unlikeothercustomerdataplatformswhichhaveneverquitedeliveredit.Thesecompleteprofilescangiveamorerounded,accurateunderstandingofcustomerneedsandwants.  TheyareFlexibleandAgile CDPsallowmarketerstobemuchmoreagileandresponsivetoever-changingmarkettrendsandcustomerbehaviors.Asdataiscollectedinrealtime,yourcommunicationscanbemorerelevant.Yourstrategycanalsobequicklyactedonbyconnectedsystems.  TheyDeliverMoreAccuratePredictions&Insights SomeCDPsystemscomeequippedwithAIandmachinelearningcapabilities.Thismeans,aswellasunifyingyourcustomerdata,theycanalsodeliveraccuratepredictionsandinsightsaboutcustomersandtheirfuturebehaviors. TheyBoostEfficiency NotonlycanCDPsmakedatacollectionandunificationmuchfasteratscale,buttheyarealsoeasiertoupdateandcanbeusedtotroubleshootanyissuesforallsystemscentrally.ThiscanreduceITresourcesandspend. CDPsarethenextgenerationofcustomerdatamanagementplatforms,whichwillenableyoutomergeyouronlineandofflineactivities,improvecustomersegmentationandpersonalization,conductcustomerscoring,retarget,andachieveomnichannelautomation.   *DoyouwanttofindoutmoreabouthowtoleverageAItomakedata-drivenbusinessdecisions?Getintouchwithourteamtodayforanexclusiveconsultation. RelatedPosts DigitalAdvertising 2021/04/27 MasterCross-ChannelRemarketinginContactlessRetail DigitalAdvertising 2021/02/23 3WaysDigitalMarketersCanStayAheadinaCookielessWorld DigitalAdvertising 2021/01/05 7DigitalMarketingTrendsfor2021andHowYouCanPrepare