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In today’s world, information is power. However, this information is stored in the form of raw data stored on various data centers. Data requires analysis and preprocessing to deduce meaningful conclusions from the pattern.

Data collection and management is a headache for most businesses. This is primarily because this data is stored across various silos and is made of different types. Customer data collection is done from various platforms and applications, making it difficult for businesses to conduct practical analysis.

However, various customer data platforms (CDPs) allow companies to manage their data within a single channel. CDPs are a collection of different software and systems accessible to create a customized and unique customer database.

What is a CDP?

A customer data platform is a centralized database that stores customer data from various channels to create a unified customer profile. You can tell about the customer’s shopping behavior and demographics from each customer dataset to provide quality service.

The CDP allows you to integrate all customer information irrespective of the data diversity. The platform stores transactional data from sales systems with information such as customer purchases, orders, product values, and any other information regarding the customer purchase. This data can come in handy when planning marketing strategies and sales ingenuities.

The platform also houses customer behavioral data such as sites visited and online clicks. It involves customer interactions with various business or e-commerce sites and the number of pages previewed. Thus, you can deduce more about the customer’s personality and preferences to tailor your marketing efforts.

A CDP is quite different from the normal functions of a CRM, but it offers a few basic functionalities. The platform functions to create a general customer image and allows businesses to predict the next customer move.

Benefits of Customer Data Platforms

Data in One Place

With a CDP, you can evaluate all data types related to the customer from a single platform. The platform is quite different from a data warehouse which requires an IT team to manage. The platform collects data from various sources, channels, and customer devices to create a unique profile.

CDP software allows businesses to gather and combine all their data for processing. This way, you can study more about the customer and ensure services become centered around the customer.

All Round Customer View

Collecting information from different sources, devices, and channels can be easy, but gathering all the details to create a single view may be hectic. The CDP creates an opportunity for businesses to isolate all information regarding a single customer to describe the customer profile. This way, you can track every step of the customer’s journey and learn more about each specific product user.

The platform creates a single view of every customer and shares the information with other channels. This way, businesses can determine the best way to promote their products to particular customers at the right time.


With a single customer profile, you can learn the best way to analyze customer data and make effective decisions. Your business may have challenges affecting your marketing campaign due to insufficient information or using the same channel for every customer. With a CDP, you can tailor your marketing campaign based on each customer’s needs.

This way, you can overcome some of the unique marketing challenges that would disrupt your campaign. Hence, you can stay aware of the ever-changing trends and customer preferences to react to changes and make the right marketing decisions.

Data Democratization

A customer data platform ensures that customer data is not limited to your marketing team. The CDP involves all departments in your business since you’ll need customer information from various channels to create a single profile. Each point of contact with clients is recorded across different departments and allows all sectors in your business to access the information.

Effective Marketing and Customer Experience

It is crucial to tailor your marketing efforts based on each customer profile and avoid bombarding customers with unnecessary ads. With CDP software, you can create a generalized and complete view for each customer to know their expectations.

Customers use different channels and devices, and you’re expected to provide a unique experience for each. This way, you can create an effective marketing campaign and provide a personalized customer experience.

CDPs allow businesses to benefit from different customer data and make information-guided decisions. You can unify all your customer data from various marketing and analysis tools for easy segmentation and delivery on expectations.


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