The 7 surprising benefits of customer data platform for businesses

There are benefits of customer data platform. It records data. It purges data. To develop a single customer view, data need to be unified. But the capabilities of the customer data platform don’t stop there. The commercial advantages of a customer data platform (CDP) are numerous and diverse, ranging from fostering customer loyalty and trust to raising income. Here are seven benefits of customer data platform can support your company’s efforts to personalize at scale and deliver remarkable customer experiences.

Customer data platform (CDP) explaination

What is Customer data platform (CDP)

Data from many sources is stored and used in a customer data platform to combine apps and evaluate data. Since it produces an accurate and unified perspective of consumer behavior, transactions, and products, a CDP aids organizations in understanding their customers. Sincere and united because, with the appropriate configuration, the data is being deduplicated, cleaned up, modelled, and stored in a single location rather than being fragmented in applications.

The benefits of customer data platform

1. Constructing omni-channel client experiences

A detailed understanding of your consumers’ offline and online behaviors is necessary for exceptional CX. By integrating data from online and offline sources and combining it to produce a single perspective of each consumer, a customer data platform gives brands a deep insight of their customers.

The CDP will segment clients using machine learning and AI based on factors like their demographics, geography, and behavior, and will then activate pertinent campaigns over a variety of channels, including mobile, email, the web, and social media. The customer data platform can adjust to these changes and respond nimbly when a customer’s channel preferences vary over time.

2. Destroying data silos

Destroying data silos

The benefits of customer data platform really show its power in this situation. By dismantling data silos, the CDP turns haphazard, disjointed collections of names, emails, and purchase history into useful, actionable data that is dynamically updated in real time.

In order to create a 360-degree customer view and perform accurate data analysis, segmentation, and decisioning, duplicate profiles that affect relevancy and analytics are eliminated. This enables the customer data platform to provide the kinds of individualized experiences that convert customers into brand advocates.

3. Increasing effectiveness of operations

Because CDPs seamlessly integrate with existing tech stacks, they significantly lower startup costs, eliminate the need for hours of engineering effort, and lessen their reliance on IT resources. The CDP democratizes consumer data so that marketers can concentrate on developing cutting-edge campaigns and experiences while IT teams focus on monitoring, developing, and optimizing new data science models.

4. Ensuring privacy and data security


Building and retaining consumer trust has never been more crucial for companies, especially in light of the constant threat of data breaches and the implementation of GDPR and CCPA. By consolidating data – gathering data sources, constructing complete and current customer profiles, and making those profiles accessible in real-time – CDPs enable organizations to adhere to existing and new data protection and privacy legislation. This unified method not only protects you and your customers from any dangers, but it also enables companies to swiftly and easily do a data audit upon request.

Ensuring privacy and data security

5. Generating income

A customer data platform is one of the most effective revenue generators in the martech stack since it can be used to increase client acquisition and create personalized omnichannel experiences that encourage retention. In fact, personalisation may boost sales by 5% to 15%, lower acquisition expenses by up to 50%, and improve marketing spend efficiency by 10% to 30%, according to McKinsey.

6. Activating AI-driven customization

The benefits of customer data platform

AI-powered customer data platforms give marketers all the information they require to choose the who, what, where, when, and how of tailored consumer engagement by leveraging historical and real-time data.

For a number of reasons, AI-powered personalisation is an effective marketing tool. While brands may use AI to find customers who are a good fit for upselling products and services to, they can also forecast and identify those who are unlikely to convert. Saving time and resources by excluding uninterested or inappropriate clients from campaigns in order to concentrate on higher-value customers also stops these customers from receiving irrelevant or out-of-date messages that cause churn.

7. Increasing the customer lifetime value

Customer lifetime value (CLV) is the sum of a customer’s value over the course of their interaction with a brand. Given that acquiring new consumers is substantially more expensive than keeping existing ones, it makes financial sense for organizations to take care of the clients they have already won by providing memorable experiences that foster loyalty.

A CDP enables brands the capacity to recognize high-value consumers and provide them with the most relevant, tailored customer experiences possible. These experiences set your company apart from the competition and raise customer retention, loyalty, and, ultimately, CLV.


With many benefits of customer data platform, marketers can continuously and thoroughly understand their customers. The CDP can create a single, unified profile that will act as the lone source of truth about a client across an organization by gathering diverse data on one platform. Along with giving the ability to evaluate and segment profiles, it may also add other data sources to that profile.

The rest of your technological stack can then use that data for activation, the execution of marketing campaigns, and messaging that enhances the digital customer experience with the help of a CDP.

Finally, the benefits of customer data platform give organizations the capacity to handle personal information centrally and create operational efficiencies to lower the cost of regulation compliance, enabling them to remain compliant with both existing and any future privacy requirements.

Modern data-driven marketing companies with a focus on the consumer are intended to use CDPs to their advantage. They supply you with the customer-specific business intelligence you require to customize messaging and experiences that add value for a partnership between an organization and an individual.

Read more:

Leave a Comment