How does a Customer Data Platform work?

The CDP software itself is incredibly complex, but the process of how it works can be explained in three simple steps.

Collect

A Customer Data Platform collects data from all your data sources such as CMS systems, websites, Facebook, and Google Analytics. Using an API, a CDP can retrieve data from more than 180 different systems easily and simply, and allow the user to quickly integrate it into the systems used in the company.

Consolidate

Data from all these different systems work independently and are written in different 'data languages' with a CDP. Therefore, the customer data you collect from Facebook possibly will not work with your data from your website or from Google.

One of the core abilities of a CDP is to combine data from all of these sources into one place. Your CDP translates all your data sources into the same language so that data from different systems can play together and provide insights to your business and customers, allowing you to gain a more precise, holistic view of your business.

Analyze

The engine and the real value of your CDP are in the data analysis itself. A CDP uses advanced AI and Machine Learning algorithms to process and analyze a large amount of data to identify the right customer segments for your business.

In addition to defining a precise customer segment, the analysis from your CDP gives you access to information about your customer segments' expected profitability, size, and the probability that they place an order on your particular products.

The software is easy and simple to integrate, and will constantly generate insights and outputs based on your data. This process is ever-continuing with every new data point stored, meaning that your company will have real-time updated insights on your customers, so you can execute and perform better.

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