What is a customer data platform?

A customer data platform (CDP) is software that combines behavioural data from multiple sources to create a customer database that is accessed from one place. By combining all customer data, you have into one central location, you can create a complete profile to better understand your customers and their behaviour.

Author: Tim Randall | Last Updated: 04/10/2021
What is a customer data platform?

Where can I collect data for a CDP?

There are a range of different sources that can be used to build up a customer profile. Think of any interaction they could have had with your business or product including:

  • Browsing or making a purchase on your website
  • Visiting and navigating your app
  • Logging a support ticket with your customer services team
  • Any interactions across social media, live chat, surveys and so on

Why would you use a customer data platform?

A CDP allows you to segment your customers into different audiences and create a more personalised marketing campaign, based on their interactions with you. You can use the customer profile that has been generated based on the user's interactions and create a more specific marketing campaign for that one person. If a particular customer doesn't interact with any of your offer or news related emails, you could then remove them from your mailing list.

What is the difference between a CDP and a CRM?

Both CRMs and CDPs collect customer data. The main difference is that a CRM will collect and organise transactional data, such as data from making a purchase on your website. Whereas a CDP goes a lot deeper and will collate customer behavioural data that you are not aware of. For example, how they have interacted and navigated around your website, social media channels or software that you provide.

If I have a CRM do I need a CDP?

Although both a CRM and CDP collect data, they are completely different entities and utilised for different purposes. A CRM would store real time and historical data of a customer, through transactions. A CDP stores data that is used to help improve future interactions with that individual.

How effective is a customer data platform?

By adding as many data sources as possible, you will build-up a more complete picture of how your customers behave and interact with your business. This in turn will allow you to offer them enhanced interactions with you and your business, which in turn will generate a better customer experience.

If you are looking for a cloud-based CRM solution to help automate a range of processes, then get in touch with Zigaflow today.

Tim Randall

Tim Randall

CEO

With an extensive background in business analysis and software programming, Tim heads up our software development team and loves nothing more than solving complex business challenges with simple easy to use software.

More Posts | View LinkedIn profile

Got a Question?

Request a call back from one of our team

Read more reviews