Do I need a Customer Data Platform? November 5, 2019 Marketing Analytics A customer data platform (CDP) is a marketing database that combines disparate customer data from marketing and other sources. A CDP is designed to store information that can be used to identify customer or purchasing trends, create predictive analytics, and leverage historical data to inform current marketing initiatives. A CDP is ideal for businesses that interact with customers: Ecommerce (customer transactions)Software-as-a-Service and subscription companies (regular customer transactions)Internal marketing or communications departments (marketing, IT and other departments often store customer data)Email communication (campaign response data)Customer service information Important!When considering a CDP, always start with a goal. What do you want to achieve? Once you have a goal, you can determine if the benefits of a customer data platform exceed the effort to create it.Too often companies jump into what may be considered cool, or what they hear someone else is doing without a blueprint. CDP vs CRM If you’re familiar with a customer relationship management system (CRM), you may be wondering what’s the difference. A CDP and CRM are similar as they both store customer data with the purpose of keeping an up to date record of customer information. Where they differ is how each system is designed for use: CDP is used to analyze dataCDP stores data from online and offline sources (transactions, surveys, demographic info, campaign performance, etc)CDP is designed to handle large amounts of historical data (think big data) Do you need a Customer Data Platform? You may benefit from a CDP if: You want to segment customers using data from separate sourcesYou want a unified view of customer informationYou want to report on critical business metrics, such as CLVYou want to profile your most valuable customers and market to similar peopleYou want to understand purchasing behavior to influence marketing campaigns Keep It Simple I’m a big fan of creating a simple proof of concept and building from there. Focus on one aspect of design and the business benefit the design provides. This approach helps keep costs down and reduces “scope creep” (when extra features get added to an already defined project timeline). Want to know more about customer data platforms? Contact us to see how a customer data platform can help your business. David Curry Founder of Sure Optimize Sure Optimize is a data science company specializing in marketing & customer analytics. Learn more about us Sign-up for weekly marketing tips! More from our blog See all posts Measure Advertising Effectiveness with Adstock Advertising is often measured by its immediate effect - an Ad is… Continue reading Twitter Sentiment Analysis (Brand Monitoring) I. Executive Summary In January, Gillette released the Boys will be Boys advertisement, highlighting… Continue reading Customer Segmentation and RFM Analysis with K-Means Clustering – Part 2 I. Business Objective An E-Commerce business wants to keep customers active in… Continue reading Don’t Confuse Marketing Tactics with Strategy Something I often see in marketing and technology is people who choose… Continue reading Targeted Marketing with Customer Segmentation and RFM Analysis – Part 1 Introduction An eCommerce business wants to target customers that are likely to… Continue reading Marketing Analytics – Fast-Food Promotion Effectiveness Summary A fast-food chain plans to add a new item to their… Continue reading Thanksgiving Dinner – Marketing Survey Data Analysis Table of Contents IntroductionObjectiveData AnalysisThe Result4a. Business Value4b. The Perfect Thanksgiving Meal… Continue reading Marketing Analytics & Data Science Summary The data science community, Kaggle, recently announced the Google Analytics Customer… Continue reading No Comments Recent Posts Do I need a Customer Data Platform? November 5, 2019 Measure Advertising Effectiveness with Adstock August 22, 2019 Twitter Sentiment Analysis (Brand Monitoring) June 4, 2019 All Website TagsData Science marketing analytics survey Leave a Comment cancel Save my name, email, and website in this browser for the next time I comment.