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What is a Customer Data Platform (CDP)? & How does it Works
2 - 3 minutes read
Content Team
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Nowadays, we are dealing with an abundance of data that companies can collect via a number of different sources and channels. But the data they have is usually scattered across several silos-platforms, databases, and systems containing the company’s data that aren’t connected to one another. And because of that, one of the most significant problems they face is how to use that data at its full potential. Among the most crucial tasks of marketing is to combine all the data a company has in one place to make full use of it. For most businesses, CDPs are a one-stop solution for this.

Creating a complete picture of a customer requires first-second and third-party data. Customer data platforms help businesses gather a tremendous amount of historical behavioral data and more from multiple sources and stitch them all together to obtain the complete notion of the customer.

It is not of concern if you are a business or a curious individual; you can get a complete idea of what CDP is and how it works. On top of that, we will also discuss why it is beneficial for businesses to use it. Stick to the end to learn each everything about customer data platforms and how they can change and enhance the entire spectrum of any company.

What is CDP (Customer Data Platform)?

A customer data platform is a piece of software whose primary purpose is to collect data from multiple systems and databases and then, later on, combine them to create a single view or rather profile of the customer. It collects and combines data from every customer interaction with your products to analyze their behavior in order to personalize their experience and enhance their engagement with brands.

The functionality of a Customer Data Platform

Because customer data platforms are bringing every type of data together from every touch point, such as e-mails, in-store transactions, social media, and more, they can create a regularly updated 360-degree view of the customer from the data gathered. They also use already existing data that is sitting inside other systems such as DRM, CRM, ERP, and more.

The most significant upside of having a unified and accurate database of all the customers is that you can view all the information concerning customer interaction with your product. Your marketing team can use it to extend your reach. They connect with other databases and provide the needed information to manage marketing campaigns and get market analysis. CDPs could even help your business predict the next move that would benefit the company’s growth by retaining old customers and aiming for new ones.

Having a customer data platform also means your business can run smoothly and efficiently without many hurdles. Since CDP is designed for companies’ marketing teams and is usually operated by marketing teams, it does not become a hassle to grasp the data it contains. This means that you do not need to assign this to your IT teams as CDP was made keeping in mind that non-technical people could access and query the data. The whole process becomes more straightforward and less tedious, saving a lot of your time.

The Benefits of a CDP

Organization of useful data

Data management requires a ridiculous amount of effort if not done correctly. It is the process of acquiring, organizing, and using your collected data. CDP comes in handy in this process, managing your data in a usable way.

Collecting valuable data requires a data governance strategy. Without this strategy, you could end up collecting a lot of useless data or could collect data the wrong way. If any of them happens, you will now have a lot of unused unorganized data that is eating dust, which is either unusable or very difficult to use. You won’t be able to uncover any helpful data even if you know what you’re looking for.

After completely handling the database, the next step is to figure out what to do with the collected data. This is where customer analytics comes into play.

Customer Analysis

Customer analytics plays a vital role in understanding customer behavior to make essential business decisions. With the help of analytics, you can easily make marketing, sales, product development, and other important decisions.

With the help of its attribution models, you can determine which parts of your marketing schemes are doing well and bringing you more traffic than usual. Taking advantage of this, you can evaluate, observe and opt for the pattern that seems to be doing well, bringing you new customers.

Customer analytics will also help improve your existing product, where you can have real-time feedback, which means you can easily enhance the strengths of your products and eliminate their weaknesses. Doing this will result in customer satisfaction and more positive engagements with newer customers.

Without a CDP, your data will be all over the place, left in ruins, rendering it useless for any customer analysis.


Customer data platforms are not easy to understand because they are complex pieces of software. However, besides being complex, using one correctly can help your business grow in many ways possible. You will also be able to improve your product as you go along and drive up market sales. A CDP could be the ideal tool for your business if you are ready to grow and take the next big step.

How does Axeno fit into all this? Here at Axeno, our goal is to provide professional services that we designed to facilitate the use of ever-evolving technology by enterprises and end users. We focus on improving user experiences and Digital Transformation services. Our services are designed to nurture your specific business needs and user requirements.