Quick Summary
According to a survey done by McKinsey & Company a few years ago, nowadays, personalization in eCommerce is so important that over 70% of the customers expect it. What’s crazier is that over 76% of them even get frustrated in the absence of a personalized experience.
The result of that is eCommerce websites with personalized experiences manage to generate around 40% more revenue than those without it. To that end, a customer data platform would be outstanding to use.
Through this blog, I’ll tell you how the eCommerce experts use the customer data platforms to ensure the best customer experience. But first, let’s see what this platform is.
A Customer Data Platform, or CDP, is a software application that collects, unifies, and activates customer data from various sources. It creates a single, unified customer profile by combining data from different channels, such as websites, mobile apps, social media, and offline interactions.
This unified view of the customer allows businesses to gain deeper insights into their customers’ behavior, preferences, and purchase history.
This platform helps businesses gain a deeper understanding of their customers and deliver personalized experiences. That means better overall customer engagement and loyalty.
Customer Data Platforms aren’t strictly categorized, but you can look at them based on their core functionalities and focus. Let’s look at these types.
Campaign-focused CDPs are designed to streamline and optimize marketing campaigns. They excel at creating and executing targeted campaigns across multiple channels. These CDPs prioritize campaign management, segmentation, and personalization features.
Key Features
Best Suited For: Businesses that prioritize targeted marketing and want to maximize campaign ROI.
Data-centric CDPs focus on collecting, unifying, and managing large volumes of customer data. They prioritize data quality, governance, and security. These CDPs are well-suited for businesses that need a robust data foundation to support advanced analytics and AI-driven insights.
Key Features
Best Suited For: Businesses that prioritize data quality and want to build a comprehensive customer data foundation.
Analytics-driven CDPs are built to extract valuable insights from customer data. They leverage advanced analytics techniques to identify trends, patterns, and opportunities. These CDPs are ideal for businesses that want to measure the impact of their marketing efforts and optimize their strategies.
Key Features
Best Suited For: Businesses that want to leverage data-driven insights to optimize customer experiences and drive growth.
Most CDPs offer combinations of these types. So how do you decide which platform will be suitable for you? Well, you can get our eCommerce consulting services or follow the next section.
Choosing the right eCommerce CDP can significantly impact your business’s ability to personalize customer experiences and drive growth. Let’s look at the key factors to consider:
Data Integration Capabilities
Make sure the CDP can integrate with your various data sources, including website analytics, CRM systems, email marketing tools, and social media platforms. The CDP should be able to unify this data into a single customer view, providing a 360-degree perspective.
Customer Profiling and Segmentation
The CDP should create detailed customer personas based on demographics, behavior, and preferences. You should be able to segment your customer base into specific groups for targeted marketing campaigns.
Real-time Personalization
The CDP should allow you to deliver personalized content and product recommendations in real-time. Ensure the CDP can deliver consistent experiences across different channels (web, mobile, email, etc.).
Analytics and Insights
The CDP should offer advanced analytics tools to uncover valuable insights from customer data. It should be able to predict future customer behavior and preferences.
Scalability and Performance
Make sure the CDP can handle increasing data volumes and user traffic as your business grows. The CDP should deliver fast performance and real-time insights.
User-friendliness and Customization
The CDP should have a user-friendly interface that is easy to navigate and use. Look for a CDP that can be customized to meet your specific business needs.
Security and Privacy
Make sure the CDP has strong security measures to protect customer data. The CDP should comply with relevant data privacy regulations like GDPR and CCPA.
Cost & ROI
Evaluate the total cost of ownership, including licensing fees, implementation costs, and ongoing maintenance. Consider the potential return on investment, such as increased sales, improved customer retention, and higher customer satisfaction.
Make sure you start with a clear business objective and go about continuous optimization accordingly.
But that sounds similar to some of the other key platforms in the eCommerce tech stack. How is it different from the likes of CRM, marketing automation, and data management?
While eCommerce CDPs are powerful tools for personalizing the customer experience, they are not the only players in the tech stack. Let’s look at how CDP compares against other platforms.
Customer Relationship Management (CRM) systems are primarily focused on managing customer interactions and relationships, often within a sales context. They excel at tracking customer interactions, managing sales pipelines, and providing customer support.
| Factor | CDP | CRM |
| Focus | Customer data unification and activation | Customer relationship management |
| Data Sources | Diverse sources (web, mobile, social, offline) | Primarily sales and marketing data |
| Use Cases | Personalization, segmentation, marketing automation | Sales pipeline management, customer support |
In essence, a CDP complements a CRM by providing a deeper, more holistic view of customers, enabling more targeted and effective marketing campaigns.
Data Management Platforms (DMPs) are designed to collect and manage large amounts of anonymous, third-party data. They are primarily used for targeted advertising and audience segmentation.
| Factor | CDP | DMP |
| Data Focus | First-party customer data | Third-party anonymous data |
| Primary Use Case | Personalized marketing, customer experience | Targeted advertising, audience segmentation |
| Data Ownership | Owns and manages customer data | Leverages third-party data |
While a DMP is useful for targeted advertising, a CDP is essential for building long-term customer relationships and driving loyalty.
Customer Data Hub (CDH) is a broader concept that encompasses a variety of technologies and processes for managing customer data. A CDP can be considered a type of CDH, but CDHs may include additional functionalities like data governance, data quality, and data security.
| Feature | CDP | CDH |
| Scope | Focused on customer data activation and personalization | Broader scope, including data governance and security |
| Functionality | Real-time personalization, segmentation, and campaign orchestration | Data integration, data quality, and data privacy |
A CDP is a more advanced version of a CDH, offering a comprehensive solution for managing and leveraging customer data.
To ensure the best results on your eCommerce website, you need to ensure a successful combination of all of these platforms. That way, the customer data will be used in the best way possible.
To that end, you can hire our eCommerce experts. We’ll take care of these integrations, while you can focus on the core business.
An eCommerce CDP is crucial for several reasons, including personalized experience, improved customer engagement, increased sales and revenue, and data-driven decision making. Basically, CDP helps in making the eCommerce experience more satisfying for the customers.
Yes, absolutely. While CDPs were initially adopted by large enterprises, they have become increasingly accessible to businesses of all sizes.
Typically, a basic implementation can take a few weeks, while more complex implementations may take several months.
The implementation time for an eCommerce CDP can vary depending on factors such as the complexity of your business, the size of your data, and the chosen CDP vendor. However, many CDPs offer quick implementation options and pre-built integrations.
A well-implemented eCommerce CDP can be the key to unlocking the full potential of your customer data. By understanding the nuances of your customers, you can deliver highly targeted and personalized experiences that drive engagement, loyalty, and sales.
When selecting an eCommerce CDP, consider factors such as data integration capabilities, personalization features, analytics, scalability, and security. Remember to choose a vendor that offers strong support and can help you achieve your business goals.
If you need help with ensuring the best CDP integration, get in touch with us today!
John Niles, a dedicated Technical Consultant at BrainSpate since 2023, specializes in eCommerce. With a global perspective, he crafts insightful content on cutting-edge web development technologies, enriching the digital commerce landscape.
