As more and more electronic marketing and promotion companies have begun to advocate a data-driven approach, there has been a requirement for a platform that serves as a central repository for customer data.
The electronic advertising ecosystem is full of three-letter acronyms. DSP, SSP, DMP, CMP, etc.. The latest hype is “CDP”- Customer Data Platform.
CDP is widely used and accepted as it provides a single sight of customer data across various devices. We already know that the advertising and promotion systems were heavily siloed such that they provide incomplete data or couldn’t identify and organize the available data.
Because of this reason, it was difficult to obtain an integrated customer view. Hence it became important to have a system set up that unifies a client database which is handy for all other advertising and marketing systems. And, CDP is here to assist you with that.
What’s Customer Data Platform (CDP)?
As more and more electronic marketing and advertising companies have started to advocate a data-driven strategy, there was a necessity for a platform which serves as a central repository for customer data*.
*The information includes personal identifiers, profile, identification details, web, and mobile application sessions, chat and audio transcripts of customer interaction, purchasing details, social media behaviour, and a lot more.
The tricky part is that this central location differs from the usual CRM and information management platforms (DMPs) as it stores data from multiple sources into a single database and provides a unified perspective. The requirement gave birth to the new jargon of adtech’CDP’.
CDP (as defined by the CDP Institute) is basically a marketer managed system developing a frequent and cohesive database that’s easily accessible to other systems. With more focus on first-party data, CDPs are more efficient than the DMPs. The centralized system generates the identifier for a customer and pulls information based on this.
Many of the contributors of the digital ecosystem erroneously comprehend CDP to a personalization tool due to its characteristics (Ex: net personalization), but this mistake leads to improper data segmentation.
Especially, GDPR has given a lift to the CDPs as brands and media companies today want to capitalize on the first-party data as opposed to relying on third party systems. As a publisher, it’s easy to find consent for you than to get for a third-party data chip. According to eMarketer, at least seven CDPs have closed deals with investors from April 2018 to August 2018.
Client Data Platform Vs Data Management Platform
Why should you invest in CDP?
1. CDPs gathers all customer data in one place proving a single view of consumer
Unlike many other data management systems that save consumer information without connecting to same customer id or some information platforms that stores just behavioural pattern of a client or the fundamental data management system used by many that produces a anonymous cookie identification, CDP stores the customer information drilling down to the user’s in-depth details which have web page views, purchases, trades or obligations completed, email clicks, surfing a specific type of content selection.
Along with this CDP stores private id associated with individual customers so that all the user data could be assembled in one location. As a result of this quality of providing personalized and detailed information, publishers have been fast to embrace CDP.
2. CDP has the agility that allows other systems to use the assembled data
This platform offer organization using a tool that developers and join a technology stack that assists in creating personalization tools, email platforms and adapting to the latest market and technology trends.
CDPs provide access to companies to collect data in any form; if it’s calling via API or direct inquiries to the database. This is why CDPs drive the best consumer experiences aside from the counterparts.
3. CDP data can be used across multiple marketing segments or teams
Whether it is any business or operational areas such as marketing, customer services, and service, and business intelligence, customer data always broadens across various sections. With CDP, it is possible to leverage customer data across all operational areas, resolving various consumer touch points.
4. CDP provides an efficient consumer experience
With consumers making use of multiple devices for hunting information through online channels or making an online purchase, they look for an enriching and comfortable user experience.
For example, any user going through the content on webpage gets annoyed when an irrelevant advertisement pop-up appears or an advertisement of any item already bought appears in front of the consumer. With CDPs, businesses achieve an understanding of consumer behavior and details ensuring comprehensive consumer experience.
5. CDPs assist in achieving better operational efficiency
As explained about CDP it is a centralized repository of customer data, it saves a lot of time which is necessary to integrate data with the specific customer or managing a number of data for a specific customer. With CDPs, it is possible to set data storage and business rules centrally and it has implemented throughout the system, saving the attempts of defining rules again and again.
6. CDPs help in real-time decision making and provides data security
This is just one most important advantage of CDP. With customers changing their decision final minute, the CDPs gather the real-time information about the customer.
This assists in targeting the next marketing campaign, organizing the suitable ad buys, enhances the conversion course and affect other operational decisions. CDP comes with enterprise level privacy abilities to supervise and restrict the distribution of customer data.
7. And, CDP May Be Used for:
Besides the above advantages, CDPs provide collective data mining and visualization .
CDPs also assist in scaling the information and making it flexible enough to handle market fluctuations.
CDPs provide access based on permission-based function and offering a comprehensive project workflow.
Any Case Study?
The Boston Globe used a CDP to,
Get a deeper and better understanding of its both unknown and identified readers to increase engagement and time spent on site.
Drive subscriptions to premium content
Increase its programmatic advertising revenues.
And, it achieved all of its goals said Peter Doucette, Chief Client Officer, on an interview with BlueConic, a CDP company.
CDP — An Opportunity for Publishers?
With the arrival and use of more technology tools, companies rely on marketers for their business revenue and the marketers in turn look towards publishers to achieve business benefits.
The definition of results has changed through the years. Earlier any number of users downloading the content through business website was a better result, but now better results meant the amount of leads generated via publishers’ ads, email content, newsletters etc making advertisers realize the importance of quality content within the quantity.
If quality gets better, greater are the yields. CDPs assist publishers in organizing and managing content, provides a comprehensive singular view of consumers, and offers exceptional flexibility that creates value in publishing performance.
Publishers always seek to get more participated readers. With lots of people browsing anonymously, understanding the kind of ads or articles to show to these users is getting more difficult for publishers. With CDP, publishers may engage the anonymous visitor and serve them with light promotional advertisements to subscribe or another ad asking if they are already a subscribed member. Not just subscription, you can also increase your ad revenue when you know who your readers are and what they really like.