Definition: A Customer Data Platform (CDP) is a type of software that collects, unifies, and organises customer data from multiple sources into a single, centralised profile. Unlike CRMs or data warehouses, a CDP is designed specifically for marketers to create a 360-degree view of each customer. This unified data allows businesses to deliver personalised campaigns, improve targeting, and measure results more accurately.
Use it in a Sentence: The retailer implemented a Customer Data Platform (CDP) to connect data from email, website, and in-store purchases into one customer profile.
Why a Customer Data Platform (CDP) is Important
1. Unifies Disconnected Data
A CDP brings together customer data from websites, apps, emails, loyalty systems, and offline sources into one place.
2. Enables Personalisation
With complete customer profiles, businesses can tailor offers, recommendations, and messaging to each individual.
3. Improves Marketing Efficiency
By making data accessible and actionable, a CDP helps marketing teams create smarter campaigns with higher ROI.
4. Supports Compliance and Privacy
Most CDPs are built with features that help businesses comply with regulations like GDPR by managing consent and data usage.
From Data to Decisions
A Customer Data Platform (CDP) gives businesses the clarity they need to understand customers fully, personalise experiences, and make smarter marketing decisions.
More Definitions
- Buying Cycle: The stages a customer goes through from need recognition to purchase.
- Campaign Metrics: The measurements used to track and evaluate marketing campaign performance.
- Capital Allocation: The distribution of financial resources to maximise business growth and returns.
- B2B Marketing Automation: Using software to streamline, automate, and measure B2B marketing tasks and workflows.
- Clickstream Data: The record of a user’s online activity, showing the path they take through websites.
- Marketing Automation Software: Tools that automate, track, and manage marketing tasks like emails, social media, and lead nurturing.
Useful Posts
Not All Tops of Funnels Are Created Equal: Our Take: An insight into how different approaches to the awareness stage impact lead quality, engagement, and overall funnel performance.
