Customer data platforms (CDP) are the fastest-growing segment of enterprise software, and they’re projected to experience a compound annual growth rate of 19.6% through 2022.

Ability to pull from multiple sources

The first and most obvious benefit of using a customer data platform is that it allows you to pull data from multiple sources. This includes your CRM system, web analytics, mobile apps and other sources. When you are comparing CRM vs CDP, CDP will definitely win the race.

It’s also possible for you to combine data from multiple sources into one place. For example, you could combine customer demographics with their purchase history or customer interests with their browsing history via website cookies to create a more detailed picture of each customer.

This ability is particularly useful because it allows you to gain deeper insight into your customers than ever before – including information about which channels they prefer interacting with you through or where they are located geographically (if this is relevant).

Segmentation and personalization

Segmentation and personalization are key benefits of using a customer data platform.

Segmentation is dividing a group into subgroups based on specific characteristics. For example, you can segment your customers by age or income level. This allows you to customize your messages for each group and increase engagement rates, leading to increased sales and revenue for your business.

Personalization is the act of making something more suited to a particular individual’s specific needs or preferences. For example, personalized marketing messages can help drive conversions by showing users their most relevant products or services, as well as offering targeted discounts that they might not have seen otherwise (e.g., “Don’t miss out! Get 20% off today only”).

More control

You can gain more control over your customer data by using a customer data platform. This means that you are no longer at the mercy of your marketing agency or other third-party vendors. You can do things like:

  • Control what information is being sent to which party and when.
  • Modify the way that this information is used for different purposes (e.g., segmentation).
  • Choose what types of campaigns are run on behalf of clients, such as retargeting or remarketing ads in email newsletters.
Improved marketing

One of the most important benefits of using a customer data platform is that it helps marketers to target customers better. The ability to precisely target specific audiences with relevant messaging and content can deliver much higher ROI than generic marketing campaigns.

In addition, the CDP helps you improve your overall marketing effectiveness by ensuring that all your channels work together in harmony. When users interact with your website, they’ll immediately be shown complementary ads on other channels such as search engine results pages (SERPs), social media platforms like Facebook or Twitter, or even within an app they have downloaded onto their device.

Adobe Real-Time CDP experts say, “When you’re about to implement a CDP, check your current tech stack to know if it has the features you require to help you operate more efficiently.”

The key takeaway from this article is that a CDP can help you better understand your customers and improve your marketing efforts. The best part is you can be a small company with small budgets or teams of data scientists to make use of these tools. Any business can benefit from using a CDP as long as they are willing to invest in it!