Illustration of how data is automatically updated across systems through propagation.
Examples of customer data integration best practices

Customer Data Integration FAQs

Customer data integration is the process of combining data from multiple sources into a single, unified system. This allows businesses to access a complete view of their customers and use that data for personalised engagement and better decision-making.

There are three main approaches to CDI:

  • Consolidation: Combines data from multiple sources into a central repository for unified analysis.
  • Propagation: Copies and shares data across systems to ensure that they stay synchronised.
  • Federation: Virtually accesses data from multiple sources without duplicating it.

Each approach serves different business needs and many companies use a combination of these methods.

For example, a retail company might consolidate customer purchase data into a central repository to analyse trends across shops (consolidation). At the same time, they use propagation to sync customer loyalty programme details—such as rewards points, membership tiers and redemption history— instantly between their CRM and e-commerce platform. Meanwhile, they rely on federation to pull inventory data directly from their warehouse system without creating additional copies — which means their stock visibility is up to date online and in-store. These facets of CDI give you a well-rounded approach to your customer insights.

CDI is an excellent way to break down data silos and improve the accuracy of your data across all platforms and resources. By breaking down barriers between your systems, CDI helps you:

  • Deliver personalised experiences that make customers feel seen and valued.
  • Make confident, data-driven decisions based on a complete picture.
  • Cut down on wasted time and effort caused by duplicate or outdated data.

When your data is connected, your teams can focus on what really matters—your customers.

Every business deals with data challenges, but CDI can help to simplify even the trickiest ones. Here’s how:

  • Disconnected systems: It connects the dots, so every department has access to the same unified data.
  • Data inaccuracies: By harmonising data across sources, CDI ensures your information is clean and reliable.
  • Complex workflows: Instead of jumping between tools, teams get instant access to what they need, all in one place.
  • Evolving data types: From IoT data to social media interactions, CDI ensures your systems keep up with new data formats.