What is a CDP
Software that creates a unified and persistent customer database, accessible to other systems.
Packaged Software
Unlike custom-built data warehouses or data lakes created by IT departments, CDPs are semi-pre-packaged software solutions that can be effortlessly deployed and managed by business users. While IT assists with the initial setup and maintenance, technical resources are usually provided by the vendor or an agency.
Persistent, unified customer database
The CDP collects and links data from various systems, creating a comprehensive customer profile. Personal identifiers are used for targeted actions and measuring individual results. CDPs primarily operate with data collected about identified individuals but can also include external and anonymous data. Users can choose what and how long is stored in the CDP.
Accessible to other systems
The data stored in the CDP can be leveraged by other systems for analysis and managing customer interactions. The CDP restructures the data, incorporates calculated values such as trends and model scores, and shares the results in formats compatible with other systems. Access methods typically include APIs, database queries, and file extracts.
What sets CDPs apart?
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Integrating data from multiple sources.
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Collecting detailed data over long periods.
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Maintaining a permanent customer database.
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Focusing on data management rather than direct customer interaction.
It's worth noting that there are other systems, such as data warehouses, software suites, or marketing clouds, that may offer similar functions to a CDP. These systems often have limitations, such as working primarily with structured data, event data, or internal inputs.
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