Word of the Day: customer data platform (CDP)

Word of the Day Daily updates on the latest technology terms | June 24, 2019 customer data platform (CDP) A customer data platform (CDP) is software that allows non-technical marketers to digitally manage customer relationships easily and efficiently. The term was coined by martech consultant David Raab in 2013. Raab defines CDP as any system that can gather customer data from multiple sources, identify when data is related to the same customer, perform predictive analytics using the database and allow marketers to use the results to make informed decisions. A customer data platform combines customer data from internal and external sources in a variety of formats, including structured and unstructured data, to create a single profile for each customer. In addition to being able to handle queries like a regular database, CDP software can also include tools for data management and operations, along with ancillary features, such as analytics and reporting. Some CDP products also use artificial intelligence (AI) and machine learning (ML) in their feature set. Many vendors have begun to offer CDP products including Amperity, BlueConic, Evergage, Foshpa, Leadspace, Optimove and Segment. How do CDPs work? A CDP ingests data from internal and external sources to create a unified view of the customer. Ingested data may come from exported files, such as a CSV file, or from real-time access through APIs and microservices. Most CDPs are built on a NoSQL database. Once data is collected, it is displayed in a centralized platform. A unique identifier is used to link all of an individual customer's information from multiple sources so that it is accessible to all relevant teams and systems. Marketers can then use the customer data to complete tasks such as measuring marketing campaign performance, conducting predictive modeling or performing customer segmentation. Benefits of CDPs A unified view of a customer and their relevant data provides an understanding of customer usage and behavior that is more complete and thorough compared to a set of discrete and separate views (e.g. per delivery channel). Having this unified and accessible view of customer data facilitates better customer experiences via personalization, product delivery and customer support. CDP's provide fast and cost-efficient access to customer data for marketers and related business users. Because a CDP is commercially available, off-the-shelf software, it is quicker to implement compared to an internally-sourced, custom development project. Quote of the Day "To deliver a personalized customer journey, businesses must blend the right technologies with easy-to-use methods." - Geoffrey Bock Trending Terms martech DCED platform customer segmentation Salesforce Customer Success Platform customer analytics data management platform Learning Center Salesforce teases new CDP features ahead of fall release Salesforce aims to unify customer data across channels with its CDP. This news comes at a time when interest in customer data platforms is heating up. Oracle and Adobe CDP war heats up, Salesforce close behind Adobe CDPs and Oracle CDPs -- which they don't actually call 'CDPs' -- given new features and promotions to try to take on smaller competitors that were first to market with customer data platforms and have more sophisticated feature sets. 6 tips for effective customer data mining Effective customer data mining can lead to future sales and enhanced customer service through shopping recommendations and fewer opportunities to mishandle data. Get six tips for mining customer data. CDP vs. DMP: Vendors battle for marketers' budgets The CDP vs. DMP technology wars are on, as independent vendors claim to cover similar IT territories. But, in reality, they plug different gaps in the martech, adtech and CRM stacks. It might not matter in the end, as Salesforce, Adobe and Oracle sharpen their own offerings. Create a winning personalized customer journey A personalized customer journey is a critical part of successful digital experiences. For organizations struggling with its implementation, here are some important guidelines. Quiz Yourself The amount of money a customer invests in a service can reduce a company's churn rate and increase the chances they'll stick with around for the long ______. A. haul B. hall Answer Stay in Touch For feedback about any of our definitions or to suggest a new definition, please contact me at: mrouse@techtarget.com Visit the Word of the Day Archives and catch up on what you've missed! FOLLOW US About This E-Newsletter This e-newsletter is published by the TechTarget network. To unsubscribe from Whatis.com, click here. Please note, this will not affect any other subscriptions you have signed up for. TechTarget, Whatis, 275 Grove Street, Newton, MA 02466. Contact: webmaster@techtarget.com Copyright 2018 TechTarget. All rights reserved.