[{"@context":"http:\/\/schema.org","@type":"Article","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/#Article","articleBody":"Simplifying a process like customer data management can require acknowledging that your existing systems have been outgrown. Solutions like customer data platforms (CDP) are built to manage the ins and outs of data, privacy, and KPIs that businesses have today.\nDespite working in a culture that\u2019s rapidly evolving, many of us struggle to cut the cord and abandon systems that were built for a time that has passed.\nA customer data platform (CDP is an end-to-end software system that gathers, organizes, and unifies customer data from multiple tools). The topic of data management has been in the news for a few years, though for many people it\u2019s still a mystery.\nSome questions people ask around data platforms include:\u00a0How does CDP benefit my business?\u00a0More importantly, how can I be so confused by something intended to simplify data management?\u00a0The first time I heard CDP was a customer data platform I had to hide the glazed eye look of, \u201cYeah, I still don\u2019t get it.\u201d\nSo let\u2019s break down the mystery of the acronym that stands to help you unlock data in ways you cannot even imagine. It\u2019s necessary to understand that when the management of data is simplified \u2013 which is the magic of\u00a0CDP \u2013 making the most of the data becomes easier, more effective, and\u00a0CDP also improves the overall customer experience.\n \nWith data breaches everywhere, customer data management becomes crucial\n   Customer data management best practices allow businesses to fortify their commitment to positive relationships. The potential for growth, in commerce and trust, is massive.  \nCustomer data management: How to build a strategy\nData management means having a plan for what you are going to do with data. You wouldn\u2019t buy a cartload of gourmet groceries without having some sense of what you are going to use them in, would you?\nGive yourself guardrails for success in building a customer data management strategy:\nEstablish standards\u2014Collection, consent, transparency\nSet goals\u2014Define how you will use the data\nUnify data\u2014Integrate data to create a single source for multiple departments to avoid silos\nSafety\u2014Commit to protecting your customers and your organization from hacks or breaches\nResearch\u2014Stay in the know about regulations like CPRA\n \n \nWith data breaches everywhere, customer data management becomes crucial\n   Customer data management best practices allow businesses to fortify their commitment to positive relationships. The potential for growth, in commerce and trust, is massive.  \nHow a platform can help to manage your customer data\nCDPs are the answer for consumers, businesses, and technology that have evolved beyond the way we\u2019ve always done it. The collective desire for an extensible solution to simplify customer data management (CDM) has grown too. CDPs create a single place for data that is then processed for the benefit of departments across the entire enterprise.\nOrganizations are inundated with a tremendous volume of data that\u2019s collected. CDP assures that none of it goes to waste, and helps businesses hone in on the specific data needed to achieve their KPIs.\nBasically, CDP is the souped-up tech version of the barista who knows every aspect of your drink order or the salesperson at the boutique who meets you once, then forevermore knows your size, taste, and budget\u2014AND never makes you feel ashamed. You\u2019ve probably experienced it when you\u2019ve had something happen to you as a consumer that made you think, \u201cThat was so easy!\u201d\nThe struggle with finding the perfect CDP or the optimal moment for a company to transition to CDP is this:\nHow on earth do you get marketing, IT, sales, corporate, and logistics to agree on needs and objectives to simplify data management?\nBenefits of a customer data platform\nThe more we learn about data, the more we realize that we\u2019re vastly underutilizing its potential. Enter CDPs. By creating ways to highlight, discard, and transform data, CDPs create a roadmap from what before felt like an insurmountable mountain. They can take you from a position of data languishing to a process of infusing marketing actions and business objectives with salient data that improves revenue and the customer experience.\nHow a customer data platform can help to manage customer data\nHere are 5 ways CDPs make sense of customer data:\nData Aggregation\u2014Everyone needs help getting the gist of something, CDPs take data from different places and formats and summarize it in a cohesive way.\nDiscretization\u2014There\u2019s always that one person at a dinner party who monopolizes the conversation, consistently steering it away from the subjects people prefer. Data discretization converts data to a discrete form to eliminate \u201cthe noise\u201d of small fluctuations.\nGeneralization\u2014Are you bothered by people who get in the weeds instead of focusing on the big picture? Data generalization, also called \u201cblurring,\u201d takes a data value and puts it in a less precise value to keep the focus.\nNormalization\u2014You might call this, \u201cGet to the point.\u201d Data normalization reduces redundancies and removes unnecessary characteristics.\nManipulation\u2014Remember the celebrity recipe book that \u201chid\u201d vegetables? This type of data management alters the data to make it easier to swallow.\nData can work for you in new ways\nThe more data, the more opportunity, particularly when it is accessible to other systems and originates from. unified customer database.\nHere are ways party data can be treated through a CDP to tell us more:\nAttribute Construction\u2014We are all seeking to distill the purest information. Sometimes this means adding attributes to help peel away data that isn\u2019t as relevant.\nIntegration\u2014Do you know the European folk story of Stone Soup? Everyone in the village is invited to contribute something to the soup. By sharing their items, it makes the whole stronger. Integration takes data from a range of sources to make a fine data stew.\nSmoothing\u2014This technique of addressing data uses an algorithm to take away noise. This allows the data to predicts trends by having specific data stand out.\nCustomer Journey Orchestration\u2014Customer journey orchestration moves data into a customer mindset. It contextualizes a customer\u2019s journey by building on data that informs how to best provide for them in real-time. If a customer does not follow the path historically assigned to first-time buyers, this approach allows for the sales process to adapt and for customer loyalty to be built.\n<\/body?\nData management is customer service\nThe question about CDPs or investing in your CDM is no longer an if, it\u2019s a when. The long and short of it is the more you delay embracing the potential of CDPs, the greater distance you put between what your customers expect and deserve and what you offer. Join hands with data to understand, manage, and satisfy your customers.\n \nReal-time insights. Across all touchpoints. Yes. For real. See the demo HERE.","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/#Article_Person","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/#Article_Person_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2020\/01\/Amanda-Magee-150x150.jpg"},"name":"Amanda Magee","sameAs":["https:\/\/twitter.com\/AmandaMagee","https:\/\/www.linkedin.com\/in\/amandamagee\/"],"url":"https:\/\/www.the-future-of-commerce.com\/contributor\/amanda-magee\/"},"dateModified":"2021-08-06T23:41:11+00:00","datePublished":"2021-05-13T07:52:03+00:00","description":"Data is everywhere, but many businesses are not realizing its full potential. Learn 9 ways CDP can transform customer data management.","headline":"Customer data management\u2014Best practice and CDP","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/#Article_ImageObject","height":"630","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/simplifyData_1200x375-1200x630.jpg","width":"1200"},"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/","name":"Customer data management\u2014Best practice and CDP","publisher":{"@type":"Organization","@id":"https:\/\/www.the-future-of-commerce.com\/","additionalType":"https:\/\/www.wikidata.org\/wiki\/Q1193236","description":"Relevant, timely information & analysis on commerce trends, both consumer-facing and B2B.","logo":{"@type":"ImageObject","@id":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","height":"96","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","width":"500"},"name":"The Future of Customer Engagement and Experience","sameAs":["https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/www.the-future-of-commerce.com\/feed\/"],"url":"https:\/\/www.the-future-of-commerce.com\/"},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/#Article"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"05","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/05\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"13","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/05\/\/13\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Customer data management\u2014Best practice and CDP","item":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/#breadcrumbitem"}]}]