Data is a commodity. You can purchase it from an array of providers and resell it to your customers, or you can buy data from another company and use that instead. But what if you want to take this model even further? What if you want to create an end-to-end solution for converting data into dollars—a robust Customer Data Platform (CDP)? There are many ways to do this, but the capabilities required of a CDP vary by type. Know more about types of customer data platforms below:
A CDP is a technology that helps businesses collect, store, and analyze customer data. It’s a software platform that allows companies to collect, process, and analyze customer data. A CDP helps you to manage all your customer data in one place so you can easily see how each customer is interacting with your business online or in person.
Operational CDPs are used to store and manage customer data. This includes the following:
- Managing customer data across the enterprise
- Storing customer data in a single location, such as an online repository or cloud service that provides a secure and shared environment for accessing, storing and managing all of your company’s customer data across multiple systems.
The analytical CDP is used to analyze data. The analytical CDP can be used to do predictive, prescriptive, and descriptive analytics.
Predictive analytics uses a statistical model of past behavior to make future predictions about customer behavior patterns. This can help marketers understand what customers are likely to do next so that they can predict their next move in the purchase process or influence them toward making a purchase decision.
Prescriptive or prescriptive analytics focuses on helping organizations make strategic decisions based on their current business situation and expected outcomes from various alternative courses of action (COAs). It helps with finding an optimal solution for given problems using an optimization algorithm based on metrics like profit maximization, cost minimization etc., which may change over time due to changing market conditions or any other factors such as weather changes etc.
Descriptive analytics involves summarizing data into understandable visual reports so that users can easily interpret trends in sales figures by region or by store location without having any knowledge about how those numbers were derived in the first place!
Strategic Customer Data Platforms
If you’re trying to figure out what kind of customer data platform your organization needs, the first thing you need to ask yourself is whether or not it should be a strategic CDP. A strategic CDP is a customer data platform that is used to support the organization’s overall business strategy. It uses data science and marketing automation tools in order to drive growth, increase revenue, decrease costs and reduce risk.
According to Adobe Real-Time CDP, “Each provides specialized tools and gets unique capabilities to the table for diverse uses.”
This has been a brief overview of the kinds of Customer Data Platforms (CDP) you can choose from. This article must have helped clarify what kind of CDP is best for your business and why it’s important to choose wisely when deciding which platform to invest in.