Building a Customer Data Platform on Your Data Warehouse | RudderStack

By neub9
3 Min Read

Why Customer Data Platform is Essential for Your Business

The purpose of Customer Data Platforms (CDPs) is to consolidate all the customer data into a single platform. They enable a wide range of use cases, from basic reporting to more sophisticated user activation scenarios, such as providing personalized UI experiences and offering incentives based on customer behavior.

The existence of CDPs has become viable in the past few years due to the relentless importance of customer-related data and the challenges it presents. Customer data is often sizable, unpolished, and riddled with inconsistencies. Additionally, it must be accessible to individuals without technical backgrounds, such as growth managers.

In today’s environment, it is feasible to capture and analyze the entire customer journey, incorporating data from various touchpoints, including customer support, marketing, and billing platforms. This rich dataset has the potential to drive numerous applications beyond traditional reporting for data-driven enterprises.

The linchpin of this data infrastructure is the data warehouse, which has evolved significantly to support virtually infinite scale, superior analytics functionalities, and machine learning capabilities. Cloud Data Warehouses (CDWs) have emerged as major facilitators of data-driven enterprises, reflected in the success of companies like Snowflake.

While off-the-shelf CDP solutions are available, constructing a custom CDP using a data warehouse offers distinct advantages, including flexibility, data privacy, and cost-efficiency.

Flexibility: A bespoke CDP can be tailored to a company’s unique customer definitions, data sources, and data models, providing unparalleled customization. Furthermore, it can accommodate a wide range of users – from marketing managers who rely on BI tools to data scientists who use advanced SQL for analytics.

Data Privacy and Governance: As privacy regulations become more stringent, ensuring data security and compliance is paramount. Employing a well-defined data architecture with strict data access policies can address these concerns.

Cost: By leveraging an existing data warehouse, a company can minimize costs associated with third-party SaaS solutions, making it a more cost-effective approach.

However, a data warehouse alone is insufficient. A robust data capture and delivery layer is crucial in ensuring consistent and high-quality data for advanced analytics and activation use cases. This is precisely what RudderStack offers as part of our comprehensive data infrastructure solution.

Are you interested in learning more about how RudderStack can benefit your company? Sign up for free, take advantage of our event stream, ELT, and reverse-ETL pipelines, or use our HTTP source for easy data transmission. We also offer 12 software development kits for seamless integration with your website or application. Get started today!

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