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 President, Sure Optimize Sign-up for marketing tips! More from our blog See all posts Marketing with Data Means Pivoting and Adjusting It's hard to avoid the word data-driven these days. I'm sure you… Continue reading Machine Learning Is Just A Tool – ML and Digital Marketing Data Analysts often want to know how they can use machine learning… Continue reading A Workflow for Inspecting Data Background A couple of years ago I read R for Marketing and Research… Continue reading Libraries For Marketing in R The R programming ecosystem has many libraries to help with common to… Continue reading 5 Reasons to Use R Programming for Marketing Analytics The R programming language provides a great toolset to analyze data. I… Continue reading What is Marketing Analytics? Marketing analytics is the practice of analyzing data to influence and improve… Continue reading 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 No Comments Leave a Comment cancel Save my name, email, and website in this browser for the next time I comment.