Customer Data Platform (CDP): What It Is and How It Can Boost Your Business’ Sales Strategy - Asset Display Page

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By Gonzalo Povedano


July 09, 2023

In today's digital age, companies are striving to offer their customers personalized and relevant experiences. To achieve this, it is essential to have a complete and unified view of customer data. This is where the Customer Data Platform (CDP) shows its advantages.

What is a Customer Data Platform (CDP)?

A Customer Data Platform (CDP) is a technology solution that collects, manages, and unifies customer data from multiple sources into a single customer profile. These sources can include customer relationship management (CRM) systems, sales systems, marketing data, social media interactions, and more. The primary goal of a CDP is to create a unified and comprehensive view of the customer, allowing companies to gain a deep understanding of their needs, preferences, and behaviors.

Essentially, the CDPs collect the customers' own data (gender, age, economic level, place of residence, etc.), their habits (by monitoring them in digital environments and even in real ones) and the products or services they want to buy. The intersection of these three dimensions brings several great advantages to companies, including:

- Improved Personalization: By having access to a unified view of the customer, which includes demographic information, purchasing habits and preferences, companies can create highly personalized experiences, offering specific product and content recommendations based on each person's individual interests and preferences. This helps to generate greater satisfaction, loyalty and commitment.

- Precise Segmentation: Companies can segment their audience into more specific and precise groups. By better understanding customers and their unique characteristics, they can target specific groups with personalized messages and offers, increasing the effectiveness of marketing campaigns and improving conversion rates.

- Cross Selling and Upselling: CDPs make it possible to identify cross-selling and upselling opportunities more efficiently by analyzing customer behavior patterns and buying preferences, so companies can offer complementary products or services. This not only increases customer lifetime value, but also drives revenue.

- Consistent Omnichannel Experience: This characteristic of CDPs enables companies to deliver a consistent and seamless omnichannel experience for customers regardless of the channel or device they use by providing consistent, up-to-date information about their interaction history and preferences. This allows organizations to offer a unified experience at all touch points, improving customer satisfaction and strengthening the company-customer relationship.

Meeting the changing needs of users today is indeed a complex task for companies. CDPs however are positioned as a key tool that allows for the improvement of the user experience, customizing the way in which companies relate and communicate with each client, and, as a consequence, allowing them to achieve greater loyalty through these interactions.

Gonzalo Povedano, Associate Director of the NEORIS Services Area in Spain

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