Glossary Data

What is a customer data platform (CDP)?

A customer data platform, or CDP, is software that collects data about a company's known customers from every source, such as the website, app, store, email, and CRM, and joins it into one profile per person. Marketing teams use those profiles to build audiences and personalize messages.

Also known as: CDP, identity resolution, composable CDP

What is a customer data platform?

A customer might browse on a phone, buy in a store, open emails on a laptop, and call support. Each system sees a piece. A CDP collects those pieces and joins them into a single profile, so marketing can see the whole customer and act on it.

CDPs grew out of the shift to first-party data. As third-party cookies and tracking faded, what a brand knows about its own customers became more valuable, and CDPs became the place to organize it.

How does a CDP work?

  1. Collect. Events and records flow in from the website, app, point of sale, email, CRM, and support tools.
  2. Resolve identity. Records that belong to the same person are matched, using emails, logins, and other identifiers, into one profile.
  3. Build audiences. Marketers define segments from profile data, such as lapsed customers who bought twice last year.
  4. Activate. Segments are sent to email, ad platforms, and personalization tools, respecting consent.

A newer model, the composable CDP, keeps customer data in the company's own data warehouse and adds identity resolution and activation on top, instead of copying everything into a separate system.

What is an example of a CDP?

Example

Stopping ads to people who just bought

A retailer keeps showing ads for a mattress to people who bought one last week, because the ad platforms don't know about store purchases.

With store sales, online orders, and email sign-ups joined in a CDP, recent buyers are excluded from prospecting audiences within a day, and they're moved into a segment that gets care tips and accessory offers instead.

CDP vs. CRM vs. data warehouse vs. clean room

TopicCDPCRMData warehouseClean room
Main jobUnified customer profiles for marketingManaging sales and service relationshipsStoring and analyzing all business dataMatching data with partners privately
DataKnown customers, across sourcesContacts and interactions logged by teamsEverythingTwo parties' data, protected
Main usersMarketingSales and serviceData and analytics teamsMarketing and partners

Why does a CDP matter?

Personalization and audience targeting depend on knowing who's who. Without a unified profile, the same customer is three strangers to three systems.

  • Less waste. Customers who already bought stop seeing acquisition ads.
  • Better first-party audiences. Segments come from real behavior across every touchpoint.
  • Know its limits. A CDP covers the customers you already know. Finding new audiences and measuring media need other tools.
How Alli does this

How does Alli do this?

Alli and a CDP do different jobs. Alli Datasources integrates first-party systems such as Salesforce and Adobe, as well as proprietary data sets, with ad platform, analytics, and commerce data, so teams can connect media activity to downstream outcomes. Alli Audience Gateway keeps first-party conversion signals flowing to every ad platform through a managed server-side connection.

Where a CDP manages the customers you already know, Alli Audience Planner builds Live Personas from broad behavioral signals, showing how audiences are changing and letting teams test ideas before spending.

Explore Alli Datasources 

Customer data platform (CDP) FAQ

What is the difference between a CDP and a CRM?

A CRM records the relationships sales and service teams manage, such as contacts, deals, and cases. A CDP collects behavior from every source into unified profiles for marketing.

What is identity resolution?

Matching records from different systems that belong to the same person, such as an email sign-up, an app login, and a store purchase, so they form one profile.

What is a composable CDP?

A CDP built on top of the company's own data warehouse, adding identity resolution and activation without copying data into a separate platform.

Do you need a CDP?

If you have many first-party data sources and want to personalize or build audiences from them, often yes. If most of your data is in one system already, a warehouse and good activation tools may be enough.

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