When it comes to different tools and systems for managing customer data, there are countless options to choose from. It’s no wonder, then, if news about customer data platforms went over your head.
Customer data platforms have become an increasingly popular system for better managing and making use of customer data. Even if you’ve heard of customer data platforms, you may still be wondering: Are they really worth investing in?
If you need to catch up to speed on what customer data platforms are or why they’re beneficial, the following guide will provide you with an overview of these important questions.
What is a Customer Data Platform?
A customer data platform (CDP) is a database which consolidates useful customer data from a number of channels and data sources. CDPs provide companies with streamlined access to deep and specific insights about their customers that they would not otherwise have a unified overview of.
An easy way to comprehend the power of CDPs is to think of them as tools which successfully address the yearning of companies to have “a 360-degree view of the customer.” How do CDPs achieve this feat? By aggregating important customer data from relevant sources such as:
- Social media comments
- Purchase orders
- Email responses
- Customer service interactions
- Customer profiles
- Mobile apps
What a CDP is Not
In order to understand what a new system is, it is often helpful to understand what it is not. Although they carry a similar sounding name, customer data platforms should not be confused as being the same as a customer relationship management (CRM) databases.
Marketer Angela Stringfellow explains that while CRMs “focus on aggregating data related to one particular channel,” CDPs “bring together the complete history of interactions and behaviors across all channels to provide a more robust, in-depth understanding of every individual prospect and customer.”
View the full article in G2 Crowd.