What is AI CDP?

Personalize the customer experience and drive incremental sales growth with Lexer.


Artificial Intelligence (AI) is a rapidly growing development in technology used in various fields. AI describes an area of computer science where, rather than relying on human intelligence, organizations rely on Machine Learning (ML) to interpret and synthesize data and crucial information to make actionable decisions similar to humans. Data collected through artificial intelligence and machine learning is used for predictive analysis in various industries, such as retail. By collecting data through AI systems, businesses can forecast key analytics, determine future outcomes, and identify problem areas to grow.

AI is an integral component of any Customer Data Platform (CDP). An AI CDP is beneficial for leaders in the retail space. As technologies evolve, retailers will likely rely more on artificial intelligence and machine-driven processes to monitor and interpret critical data and analytics. However, because of the many misconceptions surrounding artificial intelligence and CDPs, retailers can struggle to implement these technologies effectively. An introduction to AI CDP is necessary to ensure that retailers get the most out of their new, advanced systems.

To begin, it’s crucial to understand the relationship between AI and a CDP and how these assets are implemented in retail spaces. A CDP provides retailers with high-quality, efficient data across various channels and unifies data to provide retailers with an accurate, well-rounded profile for their customers. These profiles allow retailers to improve the customer experience and meet high expectations for potential customers. With a CDP, businesses will struggle to implement their AI insights effectively, resulting in poor results and inaccurate predictions for future growth. A CDP offers essential, supplemental data to your AI system to improve your data ecosystem and grow your company’s engagement rates through the following steps:

  • Integration
  • Data cleaning
  • Unification and identity resolution
  • Enrichment 

A comprehensive CDP provides advanced, real-time data processing tools, and the right system can help you scale your business as you grow your customer base. An AI CDP enriches your knowledge of your customer base to ensure that you can meet customer needs as your retail business grows and expands. A CDP combines various data sources to match data with customer profiles for a “360-degree customer view” by prioritizing machine learning technology and artificial intelligence.

While not all CDPs prioritize AI processes, systems focusing on unification typically implement these technologies to strengthen customer profiles and enrich profiles with data collected from second or third-party sources. You can grow your retail business exponentially with a complete understanding of AI CDP.

Benefits of AI CDP

AI CDP offers essential, advanced analytics to help retail businesses grow while meeting customer expectations consistently. Understanding the benefits of AI CDP is one of the first steps to implementing this type of infrastructure into your retail space. An AI CDP creates a holistic customer profile by unifying data, including emails, apps, social media, and the internet. During the CDP process, data files are cleaned, and duplicate data is erased to provide accurate and insightful results. This data provides accurate, unified customer profiles to improve customer experience.

CDPs positively affect the customer experience (CX) and will benefit your business by driving results. Some of the primary benefits of using an AI CDP include the following:

  • Improving accessibility for crucial customer information
  • Eliminating data silos
  • Providing a holistic, easy-to-use view of consumer information
  • Storing data in real-time to speed up the process
  • Boosting data collection capabilities
  • Offering a single-customer view for a competitive advantage
  • Allowing for simpler cross-channel marketing
  • Personalizing your marketing content to reach the right audience
  • Boosting customer engagement
  • Optimizing your marketing campaigns
  • Increasing your overall profits

AI CDP provides insights for customer segmentation, an essential part of connecting to your audience on a personal level. CDPs categorize your data to simplify the customer journey mapping process. Customers are segmented into some of the following categories:

  • One-time buyers to exclude customers who have only made one purchase
  • Gender segmentation, if applicable for a product
  • Email engagement segmentation to only include customers that opt-in to marketing emails
  • Recent purchasers that are still likely to purchase from your brand

AI plays a crucial role in ensuring that your CDP effectively improves the customer experience and drives results. AI provides essential Natural Language Processing (NLP) tools to enhance your knowledge of your target audience. With other systems, such as a Data Management Platform (DMP), your business may struggle to grow at the same rate it can with an AI CDP.

CDP AI Architecture

Not all CDP architectures are built the same; some systems will benefit your organization more than others. For example, critical differences exist between a CDP architecture with artificial intelligence and an architecture without AI capabilities. An effective CDP architecture must be scalable and adapt to increasing data and demand in a retail space. A CDP architecture has four variations: ingestion, unification, intelligence, and activation.

While CDPs are generally helpful, a CDP driven by artificial intelligence can provide more accurate and compelling insights to foster a positive customer experience. A CDP AI architecture differs from a typical CDP environment because it implements historical, timely data to access intelligent metrics. These metrics allow retailers to determine the best ways to engage with customers in different segments. While retailers can create a CDP architecture solo and gain some valuable information, a CDP requires customer intelligence tools to encourage growth.

Intelligence and analysis are at the heart of improving the customer experience. A CDP AI architecture offers retailers personalized recommendations tailored to individual customers to ensure a positive and memorable experience that keeps customers returning. CDPs with high-quality customer intelligence and AI tools offer the following benefits that a traditional CDP might not include:

  • Ability to easily segment your audience
  • Uncovering various opportunities for acquisition, growth, and retention
  • Simplify the process of personalizing recommendations for individual customers and segments.
  • Comprehensive and effective data enrichment to provide valuable insights into your customers and their buying patterns
  • A single customer view to understand unique consumer behaviors
  • Ability to quickly check what customers have purchased previously and develop insights to adjust your engagement strategy

Implementation of AI CDP

A determining factor to whether your CDP environment effectively grows your customer base and profitability is whether or not you follow the proper implementation steps for AI CDP. A CDP is vital for data collection that makes a significant difference in your organization’s retention results; however, you may struggle to succeed in an AI CDP environment if you do not follow the proper guidelines for implementing AI CDP. An impactful AI CDP will require the following for a smooth, seamless implementation:

  • Clearly defined goals and objectives
  • A practical and comprehensive CDP vendor
  • A data-driven and customer-first culture

For instance, while an AI CDP can help organizations improve their data analysis capabilities, technology will only help you to a certain extent without the right CDP vendor. Services like Lexer provide crucial onboarding, implementation, and strategic consulting tools to help your organization grow and adapt to an AI CDP. Choosing the best partner when implementing CDPs can make or break your strategy–a trustworthy provider should offer advanced features to ensure data security and prevent malicious parties from accessing sensitive customer information.

The steps to implement an AI CDP may vary depending on your vendor and goals; however, proper implementation of AI CDPs includes the following steps, regardless of individual factors:

  • Choose a vendor/provider to help you with the implementation
  • Outline your goals and expectations for the system with objectives based on valuable information
  • Determine customer segments to personalize engagement strategies
  • Create and implement a CDP plan
  • Monitor your results through accurate and up-to-date customer insights and make adjustments when necessary

Chat GPT AI For Retail

As artificial intelligence continuously evolves, new systems are implemented in retail spaces to respond to growing customer demand. Chat GPT is a recent development in artificial intelligence with growing amongst retailers worldwide. Chat GPT allows retailers to incorporate artificial intelligence into their customer service strategies, such as through online chatbots, to provide customers with efficient answers to their questions.

Many retailers new to artificial intelligence may ask: what are chatbots? Chatbots are software applications designed to deliver exceptional customer experiences through online chat conversations rather than direct contact with a customer service representative. A high-quality chatbot requires certain features to be effective and improve customer experiences. For example, using Chat GPT AI for retail will only deliver exceptional results if the following conditions are met:

  • The chatbot provides customer value at the same level as a live agent
  • The chatbot builds and streamlines an effective workflow
  • The chatbot integrates current technologies
  • The chatbot allows for human handover for customers to speak with agents if the bot is unable to answer their questions

Chat GPT uses AI to create more effective and efficient chatbots, allowing customers access to necessary support while your organization answers follow-up questions based on customer information. Many services provide retail organizations with advanced tools to optimize their current operations and boost the quality of their customer service.

Accenture applied intelligence is helpful for numerous reasons, as the platform is designed to capture and illuminate data in any setting and across various channels. Along with innovations like Chat GPT, retail organizations can use customer intelligence tools like Accenture to enhance the customer experience and improve overall customer satisfaction.

Additionally, your organization will benefit by implementing comprehensive solutions like Lexer. Lexer is the only CDP explicitly designed for retailers, and the platform offers essential tools to enhance the customer experience at every touchpoint. With our tailored approach, you can grow your retail business and foster a customer-driven culture to guarantee higher success rates.

Related Articles

📄 Customer Data Platform (CDP)

📄 Customer Loyalty and Retention Strategy

📄 Customer Retention Software

📄 Customer Intelligence Platform

📄 Retail Clienteling Software

📄 Customer Data Platform Architecture

📄 Customer Segmentation in Retail

📄 Clienteling in Retail

📄 Customer Loyalty Strategies

📄 Retail Data Systems

📄 Customer Experience in Retail

📄 Customer Insight Tools

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