The Power of Knowing Your User: A Look at Customer Data Platforms




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What is customer data?

In marketing, customer data is any information that you collect about your target audience. This can include demographic information like age, gender, income, geographic location and also psychographic information such as  interests, lifestyle choices, and opinions. All of this data can be used to segment your customer base, create targeted campaigns, and measure the success of your marketing efforts. However, it is important to keep in mind that, once the data has been collected, it’s fundamental  to keep track of it in a customer database. This will help you make sure that you’re reaching the right people with the right message.

What is a CDP (Customer Data Platform)?

There’s no denying that data is a powerful tool for marketers. But in order to truly harness its power, you need to have a central repository where all of your data can be accessed and analyzed. This is where a CDP can come in handy. A customer data platform is a system that enables businesses to unify customer data from multiple sources, including CRMs, transaction systems, web analytics platforms, and social media data. A CDP provides a 360-degree view of the customer by consolidating data into a single record. This record can be used to segment and target customers with personalized marketing messages. A CDP also allows businesses to track the customer journey from awareness to purchase and post-purchase. There are several benefits of using a CDP, including improved customer insights, increased marketing effectiveness, and enhanced customer experience.

How to truly know your customers?

A CDP can be a powerful tool for understanding your customers. By consolidating all of your customer data into one platform, you can gain insights into their behavior, preferences, and challenges. However, to get the most out of your CDP, you need to go beyond simply collecting data.

A CDP can be a powerful tool for understanding your customers. By consolidating all of your customer data into one platform, you can gain insights into their behavior, preferences, and challenges. However, to get the most out of your CDP, you need to go beyond simply collecting data.

Here are four tips for using a CDP to better understand your customers: 

1. Use data to segment your customers 

One of the most powerful features of a CDP is the ability to segment your customers based on their data. This helps you understand which customers are more valuable and target them with more personalized messages. 

2. Create targeted marketing campaigns

 With a CDP, you can create targeted marketing campaigns that reach the right customers with the right message. By segmenting your customers, you can ensure that your campaigns are relevant and tailored to their needs. 

3. Understand their behavior 

A CDP can help you understand your customers’ behavior. This includes understanding how they interact with your website, what kind of content they engage with, and what their purchase journey looks like. 

4. Get insights into their challenges 

Also, a CDP can help you understand the challenges your customers are facing. This includes understanding why they might not be converting or why they might be at risk of churning. By understanding your customers better, you can create more successful marketing campaigns and improve your overall relationship with them.


There are a variety of data-focused tools available to marketers, each with its own strengths and weaknesses. It would be wise to compare the CDPs described above with two other popular options:  data management platforms (DMPs), and customer relationship management (CRM) systems.

As we already  know, CDPs are designed to give marketers a holistic view of their customer data. They collect data from multiple sources, including first-party data sources like website interactions and CRM data. This data is then cleansed and organized into a single customer profile. CDPs provide marketers with powerful segmentation and targeting capabilities, making them ideal for personalization at scale.

 DMPs also collect data from multiple sources, but they focus on third-party data. This data is typically collected through cookies and other tracking mechanisms. DMPs stitch this data together to create a comprehensive view of the userr. This data can then be used for targeting purposes, but it can also be sold to advertisers and other third parties. 

CRMs, on the other hand, are designed primarily for managing customer relationships. They collect first-party customer data, including contact information, purchase history, and support interactions. This data is used to track and manage customer relations. CRMs also have some basic marketing functionality, but they are not as sophisticated as CDPs or DMPs when it comes to marketing features.


So, which tool is right for you? It depends on your needs. If you’re looking to collect and utilize large amounts of third-party data, a DMP may be a better fit. And if you’re primarily interested in managing customer relations, a CRM could be the way to go. If you’re focused on personalization and targeted marketing at scale and you are worried about the uncertain future of third party cookies, a CDP is likely your best bet.

How to choose a CDP?

When it comes to marketing, there are a lot of different technologies out there to choose from. But when it comes to choosing a CDP, there are a few things you should keep in mind. 

First, ask yourself what kind of data you need to capture. You’ll need to determine which data points are most important to your business. Do you need to track customer demographics? Psychographics? Location data? Engagement data? Once you know what kind of data you need, you can start narrowing down your options. 

Next, think about what kinds of insights you want to be able to glean from your customer data. A CDP can help you uncover all sorts of valuable insights about your customers, but only if you know what you’re looking for. What do you want to know about your customers? What kind of insights would be most valuable to your business? 

Finally, consider your budget. CDPs can vary widely in price, so it’s important to find one that fits within your budget. There’s no point in investing in a CDP that’s out of your price range and won’t give you the return on investment you’re looking for. 

By asking yourself these three questions, you can narrow down your options and find the CDP that’s right for your business.

Bottom Line

Finally, CDPs can offer a number of benefits, including providing a single view of the customer, improving customer segmentation, and enabling real-time personalization. Given the potential benefits, it’s clear that CDPs are worth considering for any organization that wants to improve its customer marketing efforts. However, it’s also important to remember the challenges involved in making full use of a CDP.

With careful planning and execution, though, any organization can overcome these challenges and reap the rewards of a successful CDP implementation.

Customer Data



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