CDP

A customer data platform, or CDP, is a software solution designed to create a persistent, unified customer database that can be accessed by other systems. It gathers data from multiple sources such as websites, mobile apps, email campaigns, e-commerce, and offline CRM systems, and it links and structures this information into individual user profiles. The goal is to provide a single, up-to-date view of each customer for use in analytics, segmentation, and personalized activation across channels.

CDPs emphasize identity resolution and data unification. They ingest first-party data and can incorporate additional data where permitted, normalize and enrich records, manage consent and privacy preferences, and apply deterministic or probabilistic methods to associate a person with multiple devices or sessions. Profiles are designed to be accessible in real time or near real time, enabling timely insights and actions.

Activation and use cases are central to a CDP. Once profiles are created, audiences can be defined and exported to activation systems such as email platforms, advertising networks, or personalization engines, or used directly within the CDP for on-site and cross-channel experiences. CDPs differ from customer relationship management systems, which emphasize sales processes and known customers, and from data management platforms, which focus more on anonymous data for advertising.

Implementation considerations include data governance, consent management, data quality, and privacy compliance with regulations like GDPR and CCPA. Vendors vary in data ingestion capabilities, real-time processing, scalability, and available connectors. Potential challenges include vendor lock-in, complexity of data integration, and cost. When evaluating a CDP, organizations should assess alignment with goals for marketing activation, analytics, and the handling of sensitive data.