CDP: trend in advertising and digital marketing

There is a new type of technology that I would like to talk about: the CDP (Customer Data Platform), its promise is to offer a single view of a consumer through multiple cross-device, mainly based on the first-party data of a company.

 At Poder.IO, we are becoming more proficient towards this type of platform because it is managed by marketers to create a unified and consolidated customer database that can be integrated more easily. In addition, CDP is useful in advertising and online marketing, collecting data such as online sales or how many people click on ads.

To explain it better, imagine this: a customer wants to return an order he has made. When you call to make the return, you will probably have to verify and give back the data of your purchase, when that information is already available in some other system. The objective would be to unify all these data to gain efficiency in the Customer Support.

CDP vs CRM

It is a usual practice to confuse the CRM (Customer Relationship Management) with the CDP (Customer Data Platform), many experts have named it a hybrid between CRM and Customer Support, however, there are some differences:

●    The CRMs are managed by IT teams, while it is the marketers (without technical background) who manage the CDP.

 ●    The CDP is focused on companies that use First-Party Data (own data), companies well known by consumers.

 ●    In B2B, marketers use CRM, CDP and B2C CRM (business-to-consumer) to directly manage customer relationships.

CDP & DMP

At this point of the article, you are likely to ask yourself: is this data also stored by a DMP (Data Management Platform)? The answer is yes, the difference is that the DMPs focus on the analysis of third-party data that is based on cookies, while the CDP focus only on first-party-data.                                

Another aspect in which these platforms differ is that the CDP can be used to nurture the relationship with existing consumers and the DMPs are used to find lookalike audiences. Of course, the border that differentiates these platforms is diffuse, because DMP has also been used to analyze first-party-data.

Why consider CDP?

Many experts in the digital marketing and advertising sector consider CDPs to become increasingly valuable assets for companies that focus on the technological component to their operation and thus streamline the segmentation and unification of data.

 It is a strong trend and we must listen to it. Now the data scientist is talking about including the PII (personally identifiable information) in the first-party data what cannot be done with a DMP and that will also unify the customer experience that is fragmented into multiple cross-device.

 All the above mentioned is in addition to the fact that the General Data Protection Regulation (GDPR), although it has guaranteed the security of the data, has also generated new challenges with the use of cookies, which reduces the effectiveness of the DMPs, it is the opportunity of the CDP to connect consumers cross-device.