10 main use cases of a customer data platform (CDP)

A Customer Data Platform, or CDP, is a technology designed to gather and centralize customer data from various sources into one place. It combines information from websites, mobile apps, CRMs, social media, and more to create a single, unified profile for each customer. By unifying data, CDPs help companies understand their customers better and allow them to create personalized experiences that feel relevant and timely.

CDPs come in various forms to suit different business needs. Data CDPs focus primarily on gathering and storing customer data. Identity and engagement CDPs, on the other hand, offer tools for both unifying customer data and engaging customers directly. Finally, martech suite CDPs provide a full suite of tools that cover data collection, identity management, segmentation, analytics, and engagement.

CDPs can also support a wide range of advanced marketing strategies, including cross-channel personalization, journey orchestration, workflow automation, and deep analytics. Different types of CDPs are often tailored to these specific use cases, with some more suited for data management and others for engagement or full-scale marketing automation.

In this post, we'll explore the essential CDP use cases, starting with foundational applications like data unification and progressing to advanced strategies like personalization, recommendations, and churn prevention.

1. 360-degree customer view

The 360-degree customer view is a key CDP use case since it is the foundation for all other data-driven marketing efforts.

By unifying data from online and offline sources—such as purchases, web activity, customer service interactions, and social media engagement—a CDP creates a comprehensive profile for each customer.

For example, a fintech company might use a CDP to sync data from customer support, transaction history, and web interactions, creating a single, unified view of each user. With this comprehensive profile, the marketing team can better understand individual preferences, resulting in more relevant messaging and improved customer satisfaction.

2. Real-time personalization

CDPs can provide data to be used in real time, allowing companies to deliver personalized experiences based on live customer interactions.

This can include everything from personalized product recommendations on websites to tailored email messages sent based on recent activity. Real-time personalization helps brands stay relevant and maintain customer engagement throughout their journey.

3. Omnichannel journey orchestration

With data from multiple channels, a CDP enables companies to deliver a consistent customer experience across platforms, such as web, mobile, email, and in-store interactions. This omnichannel journey orchestration ensures that customers receive a unified experience, regardless of how or where they engage with the brand.

For instance, a beauty brand may use a CDP to link online browsing behavior with in-store purchases. If a customer abandons their cart online, the CDP can trigger an email with a discount and a notification to the mobile app, encouraging them to complete their purchase—whether online or in-store.

4. Segmentation and targeted campaigns

Segmentation is another core CDP use case. CDPs enable marketers to group customers into specific audiences based on behaviors, demographics, or engagement history. They allow marketers to create particular segments for targeted campaigns, increasing the relevance of each interaction.

For example, a streaming service might use a CDP to segment users who frequently watch a particular genre. The marketing team can send personalized recommendations or special promotions to that segment, increasing customer engagement and satisfaction.

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5. Churn prevention and retention

CDPs with predictive analytics capabilities can help businesses identify customers at risk of churning. This allows them to engage these users with tailored offers or support proactively, which can significantly improve customer retention and reduce churn.

For instance, a subscription box company might use a CDP to track engagement and identify users whose activity has declined. By offering these users a discount or exclusive content, the company can re-engage them and prevent churn.

6. Product recommendations

With centralized data, a CDP can fuel recommendation engines that suggest relevant products or content, improving the user experience and boosting sales. CDP-powered recommendations can consider past purchases, browsing habits, and preferences to tailor suggestions effectively.

For example, an online clothing retailer might use a CDP to recommend complementary items based on recent purchases. If a customer buys a jacket, the CDP can suggest matching accessories or seasonal items, encouraging them to buy more and increasing their overall cart size.

7. Enhanced customer support

CDPs enhance customer support by providing agents with detailed customer profiles that include purchase history, previous support interactions, and preferences. This comprehensive view helps support teams deliver fast, personalized service, leading to higher customer satisfaction.

For example, a telecom company uses a CDP to give support agents access to customers' recent account changes and issues. When customers seek assistance, agents can quickly address their needs without asking repetitive questions, making the support experience smoother and more efficient.

8. Analytics and reporting

CDPs consolidate data from multiple channels, enabling teams to holistically analyze the impact of marketing efforts. With unified analytics, marketers better understand customer journeys, campaign performance, and engagement trends, helping them make data-driven decisions.

To illustrate, a SaaS company might use a CDP to analyze the effectiveness of its campaigns across email, in-app messages, and social media. By seeing the complete picture of customer interactions, the marketing team can optimize each channel's performance and improve ROI.

9. Identify upsell opportunities

A CDP provides detailed audience performance reporting, which helps companies identify upsell opportunities based on customer engagement, preferences, and purchasing history.

Marketers can craft tailored offers that increase customer lifetime value by segmenting high-value customers and those with frequent purchase behavior.

For example, a subscription-based fitness app might use its CDP to analyze users who frequently engage with specific premium content. With this insight, they can create personalized campaigns offering premium memberships or exclusive content, making the upsell feel relevant and increasing the likelihood of conversion.

10. CAC optimization

Reducing customer acquisition costs (CAC) is a significant priority for any business, and CDPs can help by enabling precise targeting and audience refinement. By leveraging customer insights, marketers can focus ad spend on the most valuable audience segments, ultimately reducing CAC and improving return on investment.

For instance, an online retailer might use a CDP to identify traits common among high-value customers. By creating lookalike audiences based on these insights, they can focus marketing efforts on potential customers more likely to convert, effectively lowering acquisition costs.

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In conclusion, CDPs provide companies a powerful way to understand and engage with customers. From data unification to real-time personalization, these platforms support a range of use cases that help businesses meet customers' expectations for relevant, seamless experiences. By effectively leveraging a CDP, companies can strengthen customer relationships, boost engagement, and drive growth.