CDPs focus on four primary tasks: collecting data, unifying data, activating data, and pulling insights from data.
1. Collecting Data
Your CDP is a centralised hub, or a home, for all the customer data your company has. It’s where anyone from your company can find customer data organised in a single place.
To accomplish this, your CDP needs to identify each individual customer by collecting and stitching together data from all of your company’s different customer relationship management (CRM) platforms and customer databases, including systems that don't usually share data, like marketing platforms, service software, and e-commerce engines.
Bringing together and unifying all this disparate data and identifying each customer based on their whole engagement history is called customer resolution.
2. Unifying Data
After your CDP brings together all your company’s data and creates customer identities, the next step is to resolve those identities across devices. This means linking identity information from your known customers (such as email addresses and phone numbers) with anonymous data they may have shared before they became customers (such as anonymous cookies and mobile device IDs).
The purpose of cross-device identity resolution is to help you understand the whole picture of your customer's journeys. For example, you can look at a customer and see that their interaction began with an email campaign and continued to your website before they shared their information and downloaded content or made a purchase.
3. Activating Data
Once your CDP creates and resolves fully unified customer profiles, it then activates that data, making it available for marketers to personalise customer experiences in real-time.
This personalisation is made possible by connecting the customer data in your CDP to all the different technology platforms you engage customers with, including email-send engines, demand-side platforms, and content management systems.
4. Pulling Insights from Data
With your CDP's unified customer profiles, it’s easy to see the entire catalogue of data each customer shares and track their whole customer journey. You can also use this data to get insights about customers, segment them into groups, and create lookalike audiences and personas to help reach new audiences.
As your CDP collects and organises all your customer data in one place, it’s a great source of information that proves the reach, revenue, and ROI of your marketing efforts.