Deep diving into CDXP and CDP
CDXP vs CDP
In order for businesses to succeed in the modern world, they need to be able to effectively utilize every resource available to them. For some organizations, this may mean proper allocation of staffing or personnel, acquiring enough raw materials to support production, and more. As more businesses come to understand the power of customer data and the value afforded by eCommerce, mobile apps, and other digital frontiers, those businesses are able to harness invaluable retail customer data.
When it comes to terms like CDXP (customer data and experience platform), it helps to know the difference between CDXP vs CDP (and even CDP vs CRM). Essentially, the primary difference between a customer data platform (CDP) and a customer data and experience platform (CDXP) is the specified inclusion of data regarding the customer experience. CRM refers to customer relationship management, and CRM technology can be closely integrated with other customer data platforms to provide a more centralized nexus of customer data.
As customers continue to increase their interactions with businesses in digital spaces (via apps, social media, or company websites), they are also generating a great deal of customer data that businesses can then analyze and utilize to help improve the customer experience throughout the customer’s journey. Businesses can extrapolate information from their customers about customer buying tendencies, behavioral patterns, and much more. Robust customer data platforms can also allow businesses to develop much better marketing strategies and customer engagement initiatives by allowing them to better understand their target audience.
To determine whether a customer data and experience platform would suit your organization’s needs, it can be helpful to hear from employees about what tools and systems would improve their workflow processes. Business leaders can also take a look at their direct competitors and other authorities within their respective industries to see how other businesses are managing their customer data solutions.
What is CDP?
We know that customer data is important and can be an invaluable resource for many retail enterprises, but exactly what is CDP? On a fundamental level, a customer data platform can help a company bolster its marketing endeavors. The CDP will work to aggregate first-party customer data from countless sources in order to construct a singular, comprehensive view of each individual customer – businesses can also see broader trends of customers and curate more personalized engagement strategies where necessary or effective.
Customer data platform tools are generally designed to help businesses create more targeted and personalized campaigns to allow for better engagement and a more positive customer experience. When customers have a positive experience or interaction with a particular business, they are more likely to patronize that business again in the future. And if their customer experience goes above and beyond what might be generally expected of retail organizations, then customers can also serve as invaluable mouthpieces that advertise your company’s expertise to their friends and loved ones.
Because of this and all of the additional customer data that a customer data platform can offer, businesses with a healthy CDP can steadily grow their customer base and improve loyalty and relations with existing customers. While a customer data platform is not the same thing as a CRM, they both utilize customer data in order to improve business operations. A CRM might be used more often to store customer transaction data whereas CDPs can centralize lots of types of customer data from numerous sources.
If you are looking for a way to improve your marketing department’s effectiveness, you might consider overhauling your company’s CDP – meaning marketing teams can have greater access to more reliable information and design better marketing campaigns and customer engagement strategies.
What is CDXP?
And what is CDXP if not a way for companies to provide a better retail customer experience for their customers? CDXPs are being touted by many within the data platform industry as the “next generation” of customer data platforms. Businesses and developers are continually striving to find ways to automate or streamline various aspects of their daily operations. As mentioned earlier, a CDXP is essentially the same as a customer data platform with an emphasis on customer experience data.
Essentially, A CDXP can act as a singular hub for all your marketing and customer engagement needs. Teams and analysts can easily access customer data and utilize those insights to develop more effective strategies in the future. Marketing teams can also learn in-depth insights from previous campaigns and highlight strategies that were really successful while identifying other methods that were less successful.
A product data platform is a solution that helps analyze the quality of product text and images while simultaneously enhancing product tags and metadata to allow businesses greater sorting capabilities and access to catalog insight. For retail organizations with a wide range of products in their inventory, this kind of platform can provide crucial insights about customer purchasing patterns and more.
Customer Data Structure
When devising your company’s customer data platform roadmap, it helps to understand some of the challenges and detours you might have to take along the way. Because customer data platforms can accomplish so many things for businesses, it’s vital to have a plan before moving forward about how your company will utilize customer data and how departments will achieve their goals. In all likelihood, your business will adapt and change the way it utilizes its CDP as business conditions change, markets wax and wane, and other trends and outside factors affect the market and customer behavior.
Customer data structure can take many forms and there are numerous ways to categorize customer data. One of the more common groupings breaks down ‘customer data’ into four unique types – basic data, interaction data, behavior data, and attitudinal data.
Basic data covers general items like demographic info and other attributes about the customer – email address, home address, date of birth, IP address, etc. Interaction data gets a bit more complex and takes a close look at how frequently a user visits a website, whether or not a user likes a social media post, or any other type of customer interaction with the company.
Behavior data, as the name implies, looks at behavioral patterns of customers like how frequently they make purchases, how much they spend on average, whether or not they are subscribed to a company’s service, and more. Lastly, attitudinal data refers to a customer’s subjective opinion of an organization. This type of data can help businesses better anticipate customer preferences, make improvements to product functionality or features, and better understand the motivations driving a customer to interact with your organization in the first place.
There are many advantages to updating your organization’s customer data platform architecture. And there are just as many ways, if not more, to utilize your customer data to make improvements to your company’s marketing strategies, customer experience levels, and general brand perception.
Customer Data Platform Examples
With a real-time customer data platform, businesses can provide unmatched engagement and personalization initiatives. There are dozens of benefits to working with real-time customer data, and chiefly among them is that businesses can adapt quicker than ever before to help provide the best possible customer experience. Real-time data can also help turn unsatisfied customers into satisfied customers by ensuring that their demands or needs are met or addressed in a timely fashion.
Customer data platform examples can allow businesses to get a sense of the kinds of customer data solutions that are available on the market already. If you are a business owner without a customer data platform in place, or if you are looking to replace an outdated customer data platform, it can help to know what’s already available and how other companies are making the most of their CDP solutions.
Some of the top customer data platforms are well-known organizations in the United States and around the world. No matter what country your business operates in, what language your employees speak, or where in the world you sell your products and services – customer data platforms can help streamline your business operations and potentially save lots of time, money, and resources.
Top Customer Data Platforms
Some of the top customer data platforms are utilized by industry leaders and global enterprises to help manage their troves of customer data. And the more high-quality data a company has, the better prepared its teams are to adapt to changes within the market. This can be vitally important for organizations that are particularly reliant on supply chains, for instance. Additionally, companies with quality customer data platforms can cultivate better relationships with customers which can increase customer loyalty, customer retention, and improve revenue streams.
Customer data platform vendors understand the value of customer data in the modern era. As businesses continue to grow in digital spaces, we can expect to see a continuation of advances in technology solutions to further streamline and automate various aspects of business operations.
In capable hands, a customer data platform can completely alter how a marketing team conducts business – and for the better. In the past, there were relatively few ways to concretely determine a marketing campaign’s effectiveness. Now, thanks to the many advancements in customer data technology, marketing teams have a much greater tool chest at their disposal to help organizations improve marketing campaigns and customer engagement strategies.