FREMONT, CA: The conflict over data is increasing day by day. Business companies are trying to harness customer data for marketing benefits while customers are struggling to wrest control of their private information. This is because of the exploitative use of data and the risk associated with data leaks and breaches. As a result, concerned authorities have tried to step in with strict and abiding regulations that improve control over the data. In the face of these rapid developments, customer data platform (CDP) has emerged as the tool on which companies are depending on for the data they can use in personalized marketing.
CDP is a marketing focused technology which accumulates customer data from multiple sources to create a single view of a particular customer, provides access to this data so that companies can work on customer profiles and segments, and allows the companies to use the information in marketing channels. Although the primary function of CDP is that of enabling marketing, it has turned out to be an excellent tool for customer data protection as well. The reason behind this is that CDP creates a single, unified image of each customer that makes it simpler for privacy officers to check for compliance.
The CDPs are not naturally meant to act as privacy enforcers or protectors, and hence, a certain amount of customization has to go in for brands to be able to leverage the CDP for privacy benefits. Companies can access, provide, and delete customer data without missing out on any fragment since CDP covers and integrates all the available data for each customer. Apart from that, the process of identity resolution is made error-free and safe using CDP. In the absence of a CDP, companies have to rely on third-party data companies for handling first-party customer information, which is not secure.
CDPs work by consolidating customer information from across many sources. The unified profiles created are advantageous to customer privacy as cross-channel customer preference is enabled. It becomes easier to apply segmentation rules in such cases, and once customers opt out of a particular communication, the companies cannot target them anymore.
At first, CDPs might come across as a privacy concern, but on careful consideration, one can see that CDPs are privacy enablers. For the companies, CDPs improve Customer Experience management vastly by letting the customers have a say in the way their data, is utilized.