What is a CDP?

A Customer Data Platform (CDP) is a type of packaged software which creates a persistent, unified customer database that is accessible to other systems. Data is pulled from multiple sources, cleaned and combined to create a single customer profile. This structured data is then made available to other marketing systems.

The Wikipedia CDP definition is one thing, but for a company looking to increase customer loyalty via real-time personalization, retaining customers with a superior, tailored experience, what is a CDP?

At Teradata the CDP definition is:
Customer data platforms (CDPs), are marketer-managed systems that create a persistent, unified customer database, complementing existing software and marketing efforts while enabling an organization to build better customer relationships. CDPs have both champions and challengers; read on to learn more about the specifics of a customer data platform.

Benefits of a Customer Data Platform
A CDP system ingests, consolidates and normalizes customer data from multiple online and offline sources. The data is centralized for analytics, campaigns, and other business needs.

CDPs organize data for immediate use with minimal effort to set up the CDP. Unlike a traditional data warehouse, set-up and maintenance doesn’t require technical expertise.

A CDP visualizes collected data through individual user profiles, creating a 360-degree customer view by tapping into a single, central data repository.

Using a customer data platform eliminates inconsistent data pulled from multiple online and offline sources and creates a reliable, unified single customer view.

Third party martech and campaign delivery software can easily access data stored in a CDP.

CDPs enable users to gain insights from real‑time data, identify high‑value segments, boost machine learning with high‑quality data, and predict a customer’s future steps.

A CDP democratizes customer data access, eliminates IT bottlenecks, and provides data access for superior marketing, customer service, and business intelligence.

Data silos are bad for business. A CDP can help an organization eliminate silos by unifying customer data and giving access to every employee who needs it.

Divergent data is meaningless. CDPs use pixels and tracking tools as the primary means of first-party data collection, so a CDP holds the most accurate customer information.

Accurate, timely customer data is a must for managing customer relationships. CDPs create customer profiles that help inform customer behavioral analysis and construct identity graphs.

An enterprise has a variety of campaigns at any given time. A CDP can unify the marketing efforts across multiple channels with consolidated, accurate data.

The Relationship Between a CDP and Marketing Data Platform
A marketing data platform is a holistic platform or technology stack for managing all available customer and prospective customer data—across channels and media—to enable targeted marketing efforts, advanced analytics, and audience creation and measurement. To do this a marketing data platform requires both a data management platform (DMP) and a customer data platform (CDP).

The Wikipedia DMP Definition
A data management platform (DMP) is a software platform used for collecting and managing data, mainly for digital marketing purposes. They allow businesses to identify audience segments, which can be used to target specific users and contexts in online advertising campaigns. DMPs may use big data and artificial intelligence algorithms to process and analyze large data sets about users from various sources. Some advantages of using DMPs include data organization, increased insight on audiences and markets, and effective advertisement budgeting. On the other hand, DMPs often times have to deal with privacy concerns due to the integration of third-party software with private data. This technology is continuously being developed by global entities such as Nielsen and Oracle. (Wikipedia)

What Makes a Marketing Data Platform?
A marketing data platform is a martech stack with a DMP and CDP working together to address the following critical elements of customer experience.

Ad Targeting: Advertising platforms and networks--ad networks and exchanges, Supply Side Platforms (SSPs), Demand Side Platforms (DSPs--leverage data for targeting ads across channels.

Behavior Tracking: Tag management platforms enable tracking of user behavior then leverage the tags to target users with ads based on previous browsing behavior.

Cross-Channel Support: Direct marketing platforms and multichannel marketing tools deliver email, text, and other messages directly to customers using segmentation and behavioral data as guides.

Personalization: Marketers employ web personalization solutions to test, vary and optimize content users are served based on behavioral, geographical, and custom information.

DMP and CDP Unification: When used together DMPs and CDPs can integrate data from a variety of sources to drive more effective experiences through marketing delivery platforms.

Customer Data Platform and Teradata Vantage CX
Customer Data Platforms (CDPs) enable the creation of real-time, unified customer profiles by giving marketers control of data. Vantage CX acts as an enterprise CDP in the cloud, helping enterprises deliver superior customer experiences by aiding data ingestion and integration, giving business users the ability the ability to easily integrate and manage millions of customer records.

The Benefits of Vantage CX and Customer Data Platforms
Channel Connectivity: Self-service data integration capabilities let citizen data integrators rapidly access and explore new data sets for increased agility.

Connected ID: With Vantage CX business users can link new data sets to existing customer information in to create unified customer profiles.

Labs: Gives business users access to individual virtual sandboxes to store and process data in a way that reduces data movement and ensures governance and security.