Customer Data Platform

A customer data platform is software that compiles customer information and shares data with other marketing software applications. Customer data platforms (CDPs) create detailed profiles of individual customers as those customers interact with their company’s website, emails, social media, and more. The data is personalized and specific, rather than general and anonymous.CDPs, for example, will collect details such as a customer’s birth date, age, and details about their online activity. This wealth of specific data helps marketers develop their customer relationships and interact with them more effectively.

Customer data platforms provide data to your entire company rather than siloing data in one particular application or database. Information is shared, making marketing more productive and collaborative. Marketing teams can also interact more intentionally with customers by accessing specific details about them, and they can prioritize creating a long-term customer base over quick leads.

CDPs organize and funnel data accurately. When a company has huge amounts of data, some pieces can get lost or be inaccurate. CDPs intake data from direct sources, compile it in one complete picture or profile, and correctly transfer it to integrated platforms (such as business analytics software or marketing automation). CDPs protect data from slipping through the cracks and help to ensure that it’s relevant and accurate. 

Customer data platforms vs. data management platforms

Customer data platforms are not data management platforms. While data management platforms (DMPs) collect general information and third-party data, CDPs collect data directly from customers (often from forms filled out on websites and other direct customer interaction with websites, emails, and in-store purchases). CDPs also compile larger amounts of data than do DMPs, using customer clicks, searches, purchases, and social media interactions. They then make this data available to the company’s other marketing platforms so that data can be used most effectively. 

Webopedia Staff
Webopedia Staff
Since 1995, more than 100 tech experts and researchers have kept Webopedia’s definitions, articles, and study guides up to date. For more information on current editorial staff, please visit our About page.
Get the Free Newsletter
Subscribe to Daily Tech Insider for top news, trends & analysis
This email address is invalid.
Get the Free Newsletter
Subscribe to Daily Tech Insider for top news, trends & analysis
This email address is invalid.

Related Articles

Complete List of Cybersecurity Acronyms

Cybersecurity news and best practices are full of acronyms and abbreviations. Without understanding what each one means, it's difficult to comprehend the significance of...

Human Resources Management System

A Human Resources Management System (HRMS) is a software application that supports many functions of a company's Human Resources department, including benefits administration, payroll,...

How To Defend Yourself Against Identity Theft

Almost every worldwide government agency responsible for identity theft issues will tell you the same thing: The first step to fighting identity theft is...

Infographic

An infographic is a visual representation of information or data. It combines the words information and graphic and includes a collection of imagery, charts,...

ScalaHosting

ScalaHosting is a leading managed hosting provider that offers secure, scalable, and affordable...

HRIS

Human resources information system (HRIS) solutions help businesses manage multiple facets of their...

Best Managed Service Providers...

In today's business world, managed services are more critical than ever. They can...