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What’s the Difference Between a CDP and Personalization Engine?

Companies across the world today have invested billions of dollars in CDP (Customer Data Platform) companies. There are significant differences between CDP platforms and personalization engines.

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Companies across the world today have invested billions of dollars in CDP (Customer Data Platform) companies.

This giant leaps forward from the days when data was no doubt available, but it was arranged in silos. Humongous volumes of data flowed in but from various streams and channels, making it fragmented and discrete.

Interpreting coherent patterns and discerning the connections was something that seemed to be a distant dream.

There are significant differences between CDP platforms and personalization engines. As a business owner, marketing professional or data analyst, it’s strategic to know the difference between a CDP and a Personalization Engine.

1. What Kind of Customer Data Do Businesses Need?

The principle of Know Your Customer is older than we think!

There is evidence that more than 20,000 years ago, the natives of certain islands in Papua New Guinea traded in a special kind of obsidian knife. These natives lived on islands that had large deposits of natural obsidian. They were able to successfully market their wares in their immediate vicinity and distant shores.

The principles of marketing, whether it’s obsidian knives or a mobile app, remain the same.

  • Who are the buyers?
  • What are their needs?
  • What is their location?
  • What are they willing to pay?
  • How can I make them buy more?

As this knowledge evolved, alongside, several other learnings also happened.

Traders in ancient times figured out that it’s way more economical and easy to nurture existing customers rather than look for new ones. They began to pay more attention to what customers bought, when and where along the trade routes to satisfy their existing customers.

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In time, accounting records began to be kept about how much was purchased, at what price and when.

This information may well have been shared and stored.

Today, though the principles remain the same, data collection, storage and interpretation methods have undergone enormous changes.

Data science, market segmentation, cloud storage, algorithms, analytics, behavioural marketing, personalization, customer data platforms, personalization, data lakes, data warehouses and more have made their entry. As new devices, technology and new ways of buying and selling evolved, data itself have undergone a metamorphosis.

Data could be stored from relational and non-relational sources, business applications, social media, and mobile apps.

This helped to improve and channelize customer relations interactions more effectively.

Today, business owners have access to a constant flood of data. The important thing is knowing how to leverage this data.

2. What Is CDP?

The Customer Data Platform Institute was set up by David Raab, a marketing technology expert and independent consultant. It provides vendor-neutral information about issues, methods and technology in the field of customer data management.

The institute defines CDP as “a marketer-managed system that creates a persistent, unified database that is accessible to other systems.”

Today’s customer requires a consistent UX across different channels and devices with their preferred brands. If customer data exists in separate silos with the business, this data cannot be aggregated, integrated and analyzed holistically. It cannot provide the whole truth about every customer.

Today, CDP software platforms are a $1 billion industry. CDP helps businesses to add context, predict and provide the following best action. It helps to link cross-channel information that can be used to cross-sell and up-sell. It also helps identify, locate and address pain points and areas of friction in the customer journey.

This can then be used to adjust marketing strategies with data-backed insight to chart a clear roadmap for marketing strategy. CDP helps businesses to recognize significant and influential moments that define the relationship with their customer.

However, as CDP evolves, it also has to consider the customer’s privacy concerns and consent management.

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3. What Is A Personalization Engine?

Personalization engines (PE) help businesses to connect and interact with individual customers. They collect and collate data from different sources to enhance and create a unique and utterly personal UX for that particular customer.

They can interact with customers through digital channels to provide business-related information, content, offers and discounts. PE’s help maintains a consistent and regular flow of information through AI, machine learning, AB testing, and linking cookies across devices. They help to tailor or curate UX, marketing efforts and websites with customer recommendations and reviews.

Personalization engines are highly intuitive platforms that offer dynamic content and responsive support.

4. What Is The Difference?

CDP offers customer data that is segmented and organized to create patterns. However, personalization engines take this one step further to develop and implement unique journey management and to orchestrate genuinely personalized experiences.

CDP helps to establish POS integration so that customer-related data and inventory information are synced. Personalization engines are more focused on ensuring that the customer experience is valuable, memorable and mutually satisfying.

Personalization engines enable the creation and delivery of uniquely personalized experiences across different and multiple channels simultaneously. They are also interaction management solutions and help businesses to achieve one-on-one engagement with every single customer. This eliminates the speculation and guesswork of what the customer is looking for.

With personalization engines, the business can automatically predict and deliver the right shopping/service experience. This can be in real-time, and every time, to the customer. Personalization engines and CDP can be used alongside each other for the best outcomes.

Both this software can be used to accelerate the pipeline. They can also help to boost revenue models by providing every website visitor/customer with the right products, marketing messages, content and usable information.

Both platforms help e-Commerce teams to become more mindful, insightful, personal and more effective. Business leaders can make better business decisions. This means they can tailor their marketing campaigns and initiatives to be more targeted and focused on the individual customer. This also means that the business can be supported across products, services, brands, geographies, domains and websites.

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Business

How To Maximize Cloud Computing For Your Business

If you’re a business owner and have been using cloud computing, this article will discuss several methods that will help you maximize cloud computing for your business:

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How To Maximize Cloud Computing For Your Business

As time passes by, technology advances to advance. With everything going digital now, the traditional use of portable hard drives is slowly disappearing. The best example is how businesses continue to take advantage of cloud-based services for convenience and mainly to increase their productivity. If you’re not familiar with cloud computing, it pertains to the delivery of services that stores and access data via the internet. It commonly includes servers, cloud storage services, online databases, and many others.

Most companies turn to cloud computing for security, data synchronization, and convenience. Flexibility and collaboration are also common factors. One advantage of using cloud computing services is that it reduces operating costs. Though it’s not often mentioned, sustainability is another reason why companies switch to cloud computing. Moving to the cloud lessens the usage of physical data centers, thus saving energy and reducing the impact on the environment.

There are many ways of improving your business with cloud computing. However, there are still companies that are yet to discover the full capabilities of cloud computing. If you’re a business owner and have been using cloud computing, this article will discuss several methods that will help you maximize cloud computing for your business:

1. Improve Security

Your chosen cloud provider comes with a security system. Because of this, your files are most likely safer in the cloud. However, essential cloud services only offer basic security, so you still have to be careful. Security breaches can badly affect your business. Hackers make these attacks, but sometimes they could also be caused by an employee.

How To Maximize Cloud Computing For Your Business

One way of improving cloud security is to employ features that help monitor end-user activities. By spotting suspicious usage patterns and activities, you could prevent a security breach. Training your employees and equipping them with security tools is the best way to prevent such attacks. This could be further enhanced by setting up additional security protocols and educating them on cybersecurity. Another way is to restrict access to important files. You can do this by setting passwords on such files.

2. Utilize File Syncing and Organization

The right cloud infrastructure solution for your business will provide your team access to the newest files anywhere. Instant file synchronization is another benefit of using the cloud. The cloud is a virtual location where you and your team can conveniently share files. This is very useful for businesses that allow employees to work remotely. With a stable internet connection, your staff can work from anywhere in the world and access files on any device, allowing flexibility.

Also, cloud data storage has a similar structure to a filing cabinet, where files are stored in folders within the storage (filing cabinet). It’s essential to construct a storage layout and establish a standard labeling system if you’re sharing access with your team. Organize your files from the beginning and as you go. This will make it easy to find and identify files whenever they’re needed.

3. Back-Up Data

Backing up data is another crucial security consideration in businesses. Similar to file syncing, you can update your backup data as you work with the cloud. The cloud can duplicate the data you input into another site (off-site) where they’re secure from threats. This will also enable you to access the backup data when an error occurs conveniently. More importantly, it guarantees business continuity and reliable data recovery.

4. Optimize Communication

Use cloud computing services that offer more features that optimize communication, like calendars and emails. This will help you arrange meetings more efficiently. You can even facilitate more extensive collaborations and set synchronized deadlines for projects.

Cloud computing data center. Storage cloud on computer data center background. 3d illustration

5. Monitor Data Analytics

Look for cloud providers that offer big data analytics. This will enable your cloud service to collect data about your business’ buyers, trends, performance, etc. Then, these data can be calculated to identify growth opportunities. Other data analytic services collect information that may help create solutions to your business’s workflow problems.

6. Stay Up-To-Date

System updates are a must in cloud services to patch up bugs, address technical issues, and adapt to the changing consumer needs. So, when there are system updates, make sure to implement them once you’ve verified compatibility where applicable.

7. Use Social Media

Social media is possibly the most successful platform in digital marketing. However, it is often overlooked as an application of cloud computing. Social networking sites will help you find your customers and easily share data with them through page posts.

Final Thoughts

Although there are numerous ways to maximize cloud computing for businesses, these are the most helpful. With the increased use of cloud computing, companies can quickly improve and boost their productivity and efficiency when these services are maximized to their full potential.

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