6 Benefits of Customer Data Platform you must know
Written by
Mariam Hazrat

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6 Benefits of Customer Data Platform you must know

Published : September 30, 2020 | Updated : December 22, 2023

As marketers, we all want our brands to build long-lasting relationships with customers. This is exactly what we expect our teams to achieve. But how can you really build these relationships unless you provide your teams with the right tools or a platform to know your customers and keep them engaged?

You’re loaded with customer data. But if they’re not actionable then it’s nothing more than a heap of wasted opportunities to engage your customers.

So here’s where the benefits of Customer Data Platform (CDP) play their part. All the information CDP gathers from the multiple customer touch-points is placed at your fingertips, absolutely ready to be used.

What is a customer data platform?

A Customer Data Platform (CDP) is an advanced solution designed to consolidate and integrate customer data from various sources into a single, unified repository.

This platform gathers data across multiple touchpoints, including online interactions, social media engagements, transaction histories, and customer service experiences. By centralizing this data, a CDP creates a comprehensive and cohesive customer profile.

This holistic view allows businesses to understand their customers’ behaviors, preferences, and patterns in greater depth. Companies leverage rich insights to tailor marketing, personalize experiences, and make informed decisions aligning with customer needs.

A CDP is central to customer-centric marketing, enabling relevant, consistent, and effective interactions across all channels.

The insights make it easier for you to keep your customers satisfied and engaged every time they interact with your brand at every stage of their customer journey.

How does a customer data platform work?

A Customer Data Platform (CDP) operates as an integrated system that collects organizes, and manages customer data from various sources to construct a comprehensive and unified customer profile.

Its functionality begins with data collection, where the CDP aggregates data from multiple touchpoints such as websites, mobile apps, email interactions, and social media platforms. This data encompasses a wide range of information, including behavioral data, transactional records, and demographic details.

Once the data is collected, the CDP then consolidates and cleanses it, resolving any inconsistencies or duplications. This process ensures the data’s accuracy and reliability, forming the basis for a cohesive and comprehensive customer view.

The CDP integrates data from disparate sources, creating a unified customer profile. This profile is continuously updated in real-time, ensuring that it reflects the most current customer interactions and behaviors.

The core strength of a CDP lies in its ability to segment and analyze this data.

Through advanced analytics and machine learning algorithms, the platform can identify patterns, trends, and customer segments, enabling marketers to gain deep insights into customer preferences and behaviors.

Based on these insights, the CDP orchestrates personalized marketing campaigns across various channels. It allows automatic triggering of targeted marketing actions like personalized emails, custom product recommendations, or tailored advertising, all based on the individual customer’s profile.

Furthermore, a CDP not only serves the marketing team but can also integrate with other business systems, such as CRM and customer service platforms. It provides a holistic view of the customer across the entire organization. This integration ensures consistent and personalized customer experiences across all touchpoints, enhancing customer engagement and loyalty.

Benefits of customer data platform

Of course, there’s much more to this. So let’s tell you exactly what CDP brings to the table.

1. Breaking the data silos

You probably already have a tool to give you a 360-degree view of your customer. Chances are that all this data is stuck in different platforms. 

But what you don’t have is a platform that breaks these data silos and connects all your marketing platforms.  Enter CDP.

It gathers data from all sources in any format, puts it together for you, and gives you the right insights to plan all your marketing campaigns.

360 degree view of your customer

2. Customer Segmentation

Once all the customer data is in one place, the next thing in line is to profile and segment customers (that too detailed) and add even more value to your offerings.

3. Tracking customer journey

CDP goes much beyond simply giving you insights on your ads or email campaigns.

Every customer interaction in terms of how many times your customer viewed a product, the number of times your website was visited, which part of your app they’re engaging with the most, and many more questions that we marketers have to tackle on a daily basis is answered by CDP.

4. Real-time information

It’s one of the best parts of having a CDP. It keeps all the data of your customers updated in real-time. This is what enables marketers to keep at par with the changing customer preferences and offer real-time solutions to every customer problem.

5. Personalized Journey

Most of the companies today recognize the importance of a personalized customer experience.

Today’s customers expect brands to offer them an experience that is unique to them. This goes on to show that you care for your customers and that you know exactly what they need when they need it, and where they need it.

This has made personalization a key strategy for marketers in every Industry today.

All said and done, the only way you can personalize your customer’s journey is if you have enough data about them. This brings me to my point. CDP is the way to get all the data (the right ones) you need to be tuned-in with your customers’ needs to make them stick to your brand.

flowchart of possibilities of Personalized Journey

6. Increased Revenue

The bottom line for all your marketing campaigns is to get revenue for your company.

It’s safe to say that any marketing tool is as good as the monetary benefits (In addition to other qualitative benefits) it gives you. All these points boil down to the fact that every business wants to be a customer-centric one, and it’s those repeat business from customers that churn your company’s financial wheels.

This is how CDP benefits you. With your data in one place, you know exactly the ‘Next best offer’ you need to make to your customer. Once you know that, rest assured you’re ready to make your customers click right on purchase.


The benefits of customer data platform are immense. With the right Customer Data Platform in place, you can be sure not to miss out on any customer milestone.

You are already in the right direction to make your and your customer’s life simpler, so take the next right step and schedule a Demo with us to actually see the benefits of CDP.

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Written By: Mariam Hazrat