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What You Need to Know About Customer Data Platforms

author-img By Arina Smith 5 Mins Read October 16, 2019 Last Updated on: March 3rd, 2020

customer data platforms

A customer data platform, also known as a CDP, customer data platforms is a must-have when it comes to data management. It is one of the most innovative tools that will be crucial in the implementation of an effective marketing strategy. Read this article to know more about CDPs, including what it is and what they can do for your business.

If you are looking for the best CDP to use in your business, check out lytics.com and see what it can do to help in data management.

What is CDP?

According to the CDP Institute, customer data platforms is “packaged software that creates persistent, unified customer database that is accessible to other systems.” It is a unified system that presents data from multiple sources, including online and offline channels. It provides users with a 360-degree view of the customers. Some of the sources of information include store interactions, website visits, email forms, social media activity, and e-commerce records, among others.

What Data Does a CDP Collect?

The data that a CDP collects can be classified into four main groups:

  • Identity Data: It is the foundation for building customer profiles. It includes name, age, gender, location, contact information, and job details, among others.
  • Descriptive Data: This gives more information based on identity data and gives users a better picture of the customer. Data collected includes information about lifestyles, hobbies, and careers.
  • Quantitative Data: This includes information about transactions, email communication, and online activity.
  • Qualitative Data: It gives personality to the customer data and it includes information about motivation, opinion, and attitudes.

What are the Benefits of CDPs?

Need compelling reasons to use a CDP in your business? Below are some of its notable benefits:

  • It Allows Personalization: With the data that you will collect using a CDP, it is easier to create personalized marketing campaigns.
  • It Uses Data from Multiple Sources: You will also love how customer data platforms use information from a variety of channels, including those that are both online and offline.
  • It is Available on External Systems: A CDP offers multi-channel integration. It is accessible across a variety of systems and compatible devices.


For beginners, it is easy to confuse a CDP with a customer relationship management tool. However, the two are not the same. One of the key differences is that CRM includes data only from known current or potential customers. In contrast, a CDP includes information about anonymous customers.

Another major difference is that a CDP uses information from both online and offline channels. With a CRM, on the other hand, it does not use offline data unless you enter it manually into the system.

If you want to have a 360-degree view of your customer, a CDP is a better option. It can integrate data from other systems, giving you a better perspective. This is in contrast to CRM that provides a limited view.

Indeed, a CDP is a valuable tool that your business needs. It is a must-have to maximize the value of data and make it instrumental in making smarter business decisions.

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Arina Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at OnlineNewsBuzz.

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