ABCAdda | Updated Aug 08, 2022
While not new, shared common data platform are more important than ever. The infinite enhancements and potential of artificial intelligence, machine learning, and real-time analytics have made centralized, available, and accurate data a core business asset.
A common data platform CDP is a software package consisting of a centralized database that can collect, manage, and enable data from multiple sources to impact the digital customer experience (CX).
Common data platform collects and integrates all types of customer semi-structured data to create one customer profile in one customer view (SCV) over time. This unified view can then align all business data efforts with a single source of customer truth.
Customer data platforms collect different data structures to provide actionable insights and instructions fed back to other technology platforms to personalize the digital customer experience.
Common data platforms may collect user behavioral, demographic, and transaction data to track and analyze customer interactions with your business.
A common data platform was created to manage and aggregate first-party data from several different channels centrally and to brand the ability to centrally manage semi-structured data to meet emerging data protection regulations such as the General Data Protection Regulation (GDPR) and California Comply with the Act. -Consumer Privacy Act (CCPA).
A common data platform combines enterprise customer data from all channels and sources, including transactional, behavioural and demographic data. A common data platform is a business-centric system that creates a unified and persistent customer profile accessible from other systems such as analytics, marketing, advertising and customer engagement platforms.
Business applications can directly access and use standard common data platform data to facilitate various actions, including segmentation, web personalization, trip optimization, marketing campaigns, next best actions, recommended products/services, churn detection, sentiment analysis and case resolution.
Organizations have a lot of data. The challenge is that the data is in silos, collected from systems that were never designed to be integrated. To add to the complexity, these systems often store stored data instead of interpreting it.
To understand the benefits common data platform CDP can bring to your business, it’s important to understand how different systems with unconnected and inaccessible customer data are holding you back.
The proliferation of channels and data types has led to an explosion of customer data. Customer data includes anonymous ad impressions to known purchases, product use, and customer service interactions. There are three types of customer data, which are main:
The problem with confidential customer data is that it is difficult to understand who your customers are, what they do, and what they want. Without data-driven insights at the core of your business, decision-making is limited and less effective.
All types of customer data can be used to enhance interactions with new and existing customers. However, for customer data to be useful, it must be integral, unified, enriched, and accessible.
A common data platform is designed to analyze data from multiple sources and provide insights, recommendations and holistic views from each customer based on data from every stage of the buyer journey.
Customers demand a personalized experience, and the only way to deliver that is by increasing your understanding of what your customers want and need. Common data platform CDP provides a single, accessible, and useful source of customer data that can be leveraged across multiple departments.
It provides the only source of real truth you need to drive growth at critical customer touchpoints:
Identify loyal customers and reward them with meaningful offers that increase their brand affinity. Design a retention strategy based on insight into sentiment and possible drawdowns.
In addition to those listed above, a common data platform can offer several benefits to your business:
Build customer trust by complying with existing and emerging privacy regulations and industry standards such as the General Data Protection Regulation (GDPR), HIPAA, and FedRAMP
Use inventory status and past purchase behaviour to provide predictive recommendations to customers that maximize campaign ROI.
While the Customer Data Platform videos are similar to other customer data solutions, it is important to understand how the common data platform differs from other systems you may already be using.
Common data platform extends the functionality of Customer Relationship Management (CRM) and Data Management Platform (DMP) solutions by integrating data from first, second and third sources.
This means CRM and DMP information is included to provide a comprehensive view of each customer so you can find all the necessary information in one application.
For the use cases of customer data platforms there are two common cases for the personalized customer experiences and targeted advertising. A common data platform allows you to develop a comprehensive, unified view of your customers and understand your relationship with them.
It enables you to achieve targeted personalization at scale, leveraging AI, machine learning and marketing automation. With a common data platform, the right message reaches the right customer at the right time, both in your store and on the website. Some of the most common use cases of common data platforms are:
You can have the CDP client download with a common data platform client via pip on Linux, macOS, or Windows. The common data platform client works with Python version 3.6 or higher.
For more information, see the instructions below:
Example Enterprise Data Platform (EDP)
Enterprise Data Platform (EDP) offers centralized access to enterprise data.
Financial assets. Typically, EDP exists in the local or hybrid world and consists of traditional data sources.
EDP can, for example, include OLTP databases, data warehouses, and data lakes. EDP also includes tools and processes for data collection, preparation, and analytical reporting.
The provider Lifecycle Management Platform is a complete solution providing supplier recruitment, online application, proof of eligibility, contracts, supplier data management and supplier procurement services. The vendor lifecycle management platform helps payers provide vendors with a better Uber experience and member care.
Common data platforms and CRM solutions collect customer data. Common data platform helps you manage customer data, improve marketing effectiveness, and make informed business data decisions about customer touchpoints.
They generate unified customer profiles and segments that can be shared with other marketing tools or business systems in your stack and used to personalize customer engagement.
CRM only stores first-party data – information about your customers’ direct interactions with your company. Most data entry in CRM is done manually; The sales team enters call records, support tickets, etc.
While CRM can help you organize and manage information about customer interactions, it is usually most useful for employees who manage individual customer relationships.
Common data platform helps you create a personalized customer experience by combining first, second, and third-party customer data, which may include personal information such as names, mailing addresses, email addresses, and phone numbers of unknown and unknown individuals.
DMP usually only works with anonymous or unidentifiable customer data. The main data sources for DMP are data from second and third parties. The primary use of DMP is to segment and categorize your customers for advertising purposes anonymously.
At the same time, a common data platform helps you create repeat customer profiles that can be shared with marketing, sales and service teams to inform and drive customer retention for improvement.
DMP can’t just work with first-party data, so second-party data can be used to complement and scale your first-party data. Third-party data is used to supplement first and second-party data to add depth and accuracy to customer profiles.
Common data platform pulls data from all sources – including online, offline, operations, and IoT – to create and use insights for your customers.
You may be able to drive single-channel engagement like targeted email with marketing automation, but achieving true one-to-one personalization requires the deep insights that a common data platform provides.
Marketing automation systems help marketers organize customer journeys to nurture leads, attract more customers, and increase customer retention.
They rely on data and insights to drive campaigns and often work closely with other MarTech and AdTech systems. However, marketing automation systems are not designed to frequently use data from multiple sources to create and serve omni channel campaigns.
A common data platform is a smart data source that, when shared as a robust 360-degree customer profile, can provide a consistent experience across the omnichannel customer journey.
Marketers with unified customer profiles can optimize their automated campaigns by successfully targeting the right customers at the right time with the right message.
There may be some confusion about the differences and benefits of a Customer Data Platform videos (common data platform) versus a Data Management Platform (DMP) versus a Customer Relationship Management (CRM) platform.
While they manage all customer data in several ways, they are all designed for different purposes and have some significant differences.
The Customer Data Platform (common data platform) is a centralized customer database that uniformly profiles the data it collects across several data silos.
The common data platform then sends the aggregated data-driven to other solutions in the technology stack to impact the user experience. Common data platforms usually focus on first-party data.
A data management platform (DMP) is software used by marketers to improve advertising, retargeting, and media buying for programmatic advertising.
The data that DMP uses are typically anonymous, comes from cookies, devices and IP addresses, and is only stored for a limited time. DMP will share its data with a common data platform to enhance the customer profile developed by the common data platform.
A customer relationship management (CRM) platform tracks and manages interactions with customers and prospects. You will mainly support the sales team for content management and sales management.
Marketing data can be entered into a CRM system via connectors but is more often entered manually when a sales representative enters the data.
Common data platform has a wider range of applications and sits on top of DMP and CRM solutions in your technology stack.
Customer data platforms can receive second and third-party data from DMP and CRM to make the unified profiles they create more complete. But DMPs can also benefit from common data platforms, as they can ingest data to improve ad targeting.
A customer data platform may be the right choice for your business data if you want to improve the overall customer experience with data-driven insights and make your marketing efforts more agile and efficient.
Common data platforms can collect customer data from across your channels and different silos to create a single customer view of a customer that can serve as a single truth profile that can share across the organization.
This unified view lets your marketers analyze customers more easily and identify critical segments to deliver more relevant, contextual, personalized, and consistent messages.