Want to know your customer better? Discover the power of CDPs
In a world where user privacy is paramount and the transition to the end of third-party cookies is in focus, have you ever wondered how some companies offer such personalized and relevant experiences for their customers? There are some alternatives to cookie tracking, and one of them is a powerful tool called the Customer Data Platform (CDP), which can transform the way you manage, analyze and use customer data to drive growth and loyalty.
In the course of this article, we’ll explain how CDPs work and also the ways in which a CDP can help you improve your strategies.
What is a CDP?
A Customer Data Platform, or CDP, is a tool designed to collect and organize consumer data from various sources into a single database. It creates unified and detailed profiles, allowing companies to better understand their customers and their behaviors, preferences and history of interactions on various channels.
How does a CDP work?
There are five key points that help explain how a CDP works, ranging from data collection to data activation, resulting in more relevant and efficient personalization and segmentation of marketing campaigns for both the company and the consumer. These points are:
- Multichannel Data Collection: CDPs can collect customer data from a variety of sources, such as websites, mobile applications, social media, emails, physical points of sale, among others.
- Data Integration: They are able to integrate and unify data from different systems and sources, including CRM data, marketing automation, content management systems, among other sources.
- Customer profiling: Once the data is collected and unified, CDPs create detailed customer profiles, including demographic, behavioral, transactional and engagement information.
- Advanced Segmentation: Based on the customer profiles created, CDPs enable advanced customer segmentation for targeted and personalized marketing campaigns.
- Data Activation: CDPs can also feed other marketing, advertising and customer service systems with relevant customer data to improve real-time interactions.
And what about user privacy?
CDPs can be valuable tools for centralized customer data management. But they also help companies deal with issues of user privacy and the end of third-party cookies, helping to ensure the proper and secure handling of customer data, while enabling effective personalization and analysis of interactions with consumers. This is because CDPs enable:
- Control of Customer Data: A CDP generally allows companies to have greater control over the customer data they collect and use. This can include options for customers to opt out of providing certain types of data or to revoke their consent to data use. In this way, companies can ensure that they are compliant with data privacy regulations, such as the GDPR in Europe or LGPD here in Brazil.
- Centralized and Secure Data Storage: By centralizing customer data in a single secure database, a CDP can help companies better protect customer information from unauthorized access and data breaches. This is especially important at a time when the security and privacy of user data is increasingly important.
- Personalization Based on Proprietary Data: With the demise of third-party cookies and increasing concerns about user privacy, companies are increasingly looking to first-party data to personalize their interactions with consumers. A CDP can help companies collect and effectively use this data to segment and personalize their marketing campaigns and customer communications, without relying on third-party cookies.
- Data anonymization or pseudonymization: A CDP can help companies analyze customer data anonymously or pseudonymously (encrypted), without the need to directly identify individuals. This helps protect customer privacy, while still providing valuable insights for the company into the behavior of its consumers and market trends.
In short, a CDP plays a key role in building deeper and more meaningful relationships with customers, helping companies to provide more personalized and relevant experiences at every touchpoint, all while respecting user privacy.
There are several CDP platforms available on the market, each with its own advantages and specific functionalities. If your company doesn’t yet use a CDP to manage its customer information, it may be time to consider how this powerful tool can boost the success of your business. And if you need help understanding the pros and cons of each platform, we at DP6 can help. Talk to DP6.
Profile of the Author: Ana Pedretti | Business Analytics Consultant at DP6, a biologist by training, she has been working with digital marketing, data intelligence and CRO since 2014 and has worked with clients from a wide range of industries. She is passionate about the relationship between web analytics and business results, and about teaching these skills to promote a more data-driven world. She is the guardian of two messy dogs, and in her spare time she likes to crochet, cook and play video games.
Profile of the Author: Sa de Oliveira | Business Analytics Consultant at DP6, with a degree in Biology, has been a data analyst since 2013 with a solid track record in various market segments. He has always focused on improving strategies through tools that speed up and facilitate decision-making. In his spare time, he’s usually hunting some legendary dragon in the gaming world, as well as looking after his canine children Frigga and Thor, with breaks for dramas.
