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How can CDP improve a marketing strategy in 4 steps?

Nowadays, marketers face a lot of new challenges which have not been encountered before. First and foremost, customers are more demanding and expect highly-personalized communication, even from digitally-based businesses.

One of the most challenging parts in this shift from mass media-focused approach into personalized conversation turned to be big data analysis; a large amount of information produced by each and every client can be extremely difficult to track, basically impossible using traditional methods.

As a result, Customer Data Platform had been designed to meet the most sophisticated demands imposed on modern-day marketers.

How the Customer Data Platform can improve the marketing strategy?

1. Finds the most profitable funnels

Funnels represent a customer-focused sales process which symbolize phases your consumer should go through in order to perform a final purchase.

However, you need to know your customers well and understand how they are likely to perform a purchase, in order to recognize and address funnels successfully.

Communication is another factor which greatly affects the funnel; clients need to be properly educated about the product before buying it and your job, as a marketer is to advertise a selling item in the most personal and persuasive manner throughout all stages of the funnel’s structure:

  • Top of the funnel: this is where the initial selection starts; only those customers who are the most interested in your offerings are going to move further on this stage. Therefore, marketers’ job is to inform potential buyers about the product and engage with them. Content example: blogs.
  • Middle of the funnel: in this phase marketers initiate a dialog between a company and the client in order to prove the worth of an offered product/service. Your potential customer in the middle stage of the funnel found your business interesting, and therefore wants to hear more about it. Content examples: free trials, testimonials, case studies.
  • Bottom of the funnel: your potential customer is convinced that your offering is the best and is willing to make a purchase. Now, the job is being followed by salespeople who would encourage a client to make a final step. Content examples: personal consultation, promotional codes.

The Customer Data Platform is an extremely useful tool for communicating with clients through all funnel stages. The CDP software is able to scan real-time data about an individual customer, so that you can:

  • Introduce a product/service in a personalized way to individual buyer
  • Initiate a successful dialog with a potential client
  • Create content suited to challenges an individual customer is currently facing
  • Offer highly attractive discount/premium access for your client

2. Increases customer’s lifetime value

The CLV formula is being frequently used by marketers to estimate the total amount of money a buyer is expected to spend throughout the lifetime.

Keeping a CLV number soaring is desirable for every business, since acquiring a new customer is much more expensive than retaining an existing one who is willing to spend substantial amounts of money at your company.

However, the task of calculating a precise CLV is quite challenging and many companies, especially small-sized ones find it difficult to estimate.

In this case, Customer Data Platform can automatically calculate the CLV for individual customers thanks to its advanced technological capabilities, such as AI. The CDP estimates Customer Lifetime Value based on the:

  • Probability of the next purchase: CDP access all detailed information about the customer, thus it is able to estimate their shopping motives (what they currently need, what is the best way to communicate with them, how much money they are willing to spend, etc.)
  • The number of products a customer is likely to purchase: the CDP can calculate how many items a customer is likely to purchase over the course of their lifetime

3. Finds your most valuable customers

Customer Data Platform offers marketers a single customer view built upon an in-depth clients’ analysis. That feature gives businesses a unique opportunity to gain valuable insights into the market landscape.

As a result of automated customer segmentation, marketers are able to detect the most and the least valuable segments and nutriate them accordingly.

The Customer Data Platform scans and translates multiple information about customers in order to find the most valuable one for the business, based on such features as:

  • Demographics (education, gender, occupation, income etc.)
  • Geographics (region, country, size of the city, etc.)
  • Behaviours and lifestyles (Interests, hobbies, routines, preferences, erc.)
  • CLV (how much the customer is expected to buy throughout the lifetime, estimated value of their purchases)

Why is finding the right segment beneficial for a business?

  • Identifies market opportunities: pinpoints were to address marketing efforts, in order to develop the company and increase its profits in the long-term.
  • Improves customer retention: you are not able to satisfy all potential customers, but you are capable to meet the needs of your most profitable segment! Focus on their retention by offering a superior level of service and communication with this group!
  • Builds a strong brand: after discovering the most beneficial segment you are able to create a brand that would suit their needs. You are now competent enough to offer the most relevant product/ service to meet your best-rated customers’ needs.
  • Determines product/service price: it is very difficult to estimate the right price for your product/service. Thanks to the segmentation, you are able to find the price sensitivity of each customer cluster and adapt the price strategy subsequently.
  • Finds the best distribution strategy: segmenting customers can help you chose the most efficient distribution channel and outlets which would fit their individual needs

4. Finds the right KPIs

KPIs (Key Performance Indicators) are designed to measure company performance, for example in relation to the marketing campaign. Having KPIs implemented is an essential part of every business, because of their:

  • Function to measure the company’s performance in relation to its goals: marketers are able to track if objectives are being met consistently and if there is any activity that should be improved, or otherwise sustained
  • Motivational character: employees are more willing to work if they have a clear goal in mind to achieve and expect a reward afterwards. Remember to set clear goals and do not overestimate or underestimate your staff; try to find the right balance!
  • Accountability feature: your creditors and investors would be happy to see that your company follows KPIs successfully.

However, the question is: how to measure KPIs? The data produced by customers and a company can be enormous and impossible to measure using traditional methods. Likewise, in that case, the Customer Data Platform is an answer!

The CDP tracks and scans in-depth information about customers, and afterwards translates the data into readable format which can be used by members of each department within the company to monitor their performance in relation to KPIs.


Customer Data Platform finds its wide purpose within all marketing activities. Nowadays, data is more important than ever and implementing it within the marketing strategy is becoming essential for every company that enjoys a strong digital presence.

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