How CDPs Collect Data

October 31, 2023
Share this post

In today's data-driven world, understanding your customers is key to delivering personalized experiences and driving business growth. One powerful tool that can help businesses achieve this is the Customer Data Platform (CDP). The CDP revolutionizes the way businesses collect, analyze, and utilize customer data, particularly in industries like automotive where customer journey analysis is crucial. This blog post will delve into the functionalities of CDPs, how they work, and the benefits they can bring to your dealership. Whether you're already using a CDP or considering its implementation, this post will provide valuable insights into leveraging this powerful tool for maximum impact on customer engagement and business success.

The Data Collection Highway

A CDP works by aggregating data from a multitude of sources to build a comprehensive, unified view of each customer. This process begins with data collection. The magic of a CDP lies in its ability to gather information from both online and offline sources, which typically include:

1. Dealership Management Systems (DMS): A DMS holds a treasure trove of valuable customer data, including purchase history, service records, financial data, and more. 

2. Customer Relationship Management (CRM) systems: CRMs contain valuable information about customer interactions, leads, and sales pipelines, which a CDP can tap into.

3. Website and Online Platforms: Customer interactions on the dealership’s website, online chat, and digital marketing platforms provide valuable insights into browsing behavior, online inquiries, and digital engagement. This is usually where a DMP is utilized to collect the events that occur in these consumer experiences.

  • iFrames and Subdomains: It is important to remember that a vast majority of dealership websites have iFrames and subdomains intertwined with a shoppers online journey. Basic analytics tools have difficulty unifying the data within iFrames and subdomains with the data generated in the main website. However, a true CDP can solve for this disconnect by assigning a user ID that stays assigned to the same user regardless of what page or iFrame they interact with.

4. Third-Party Data Providers: Third-party providers can supply additional data, such as demographic information, vehicle ownership history, or consumer behavior data, that can enrich a dealership's understanding of its customers.

5. Social Media Platforms: Platforms like Facebook, Twitter, and Instagram can offer insights into customers' interests, preferences, and online interactions.

6. Email Marketing Engagement: Provide open rates, click-through rates, and unsubscribe rates serve as valuable data signals that can significantly enrich a CDP.

Navigating the Data Crossroads

Unlike other data systems, a CDP is designed to handle both structured and unstructured data. This means it can process everything from neatly organized Excel sheets to unstructured social media posts or web browsing logs. This versatility is crucial for capturing a complete picture of the customer journey.

  1. Zero-party data, voluntarily provided by individuals, allowing consumers to give information in real time. 
  2. First-party data, which includes information directly gathered from your database and activated by you. 
  3. Second-party data, a type of data acquired through exclusive partnerships or alliances. 
  4. Third-party data, data sold to businesses to enrich their zero/first/second-party data.

Methods of Data Collection

  • API (Application Programming Interface) allows systems and applications to communicate with each other and exchange data in a structured and automated manner. Many software platforms and services offer APIs that enable seamless data integration and retrieval. Organizations can use APIs to collect data directly from various sources, such as social media platforms, web applications, or third-party services. APIs provide real-time or near-real-time data access, allowing businesses to retrieve the most up-to-date information for analysis and decision-making.
  • Web Analytics Integration: Data can be collected from your company's website by integrating the CDP with web analytics tools like Orbee's Analytics, Google Analytics, Adobe Analytics, etc. This can provide insights into the user's behavior on your website, such as pages viewed, time spent, events triggered, etc.
  • CRM/DMS Integration: By integrating the CDP with a CRM (Customer Relationship Management) or DMS (Dealer Management System) platform, customer data such as purchase history, customer interactions, and customer feedback can be collected.
  • SFTP (Secure File Transfer Protocol) is a secure method of transferring files over a network. It provides a secure channel for data exchange between a client and a server. Organizations can use SFTP to collect and transfer data from different sources, such as customer databases, analytics platforms, or external vendors. With SFTP, data is securely transmitted and stored, ensuring confidentiality and integrity during the transfer process.
  • FTP (File Transfer Protocol) is a standard network protocol used for transferring files between a client and a server. It enables the exchange of data files between different systems over a network. Organizations can use FTP to collect and transfer data files from various sources, such as log files, reports, or backups. FTP provides a straightforward and reliable method for data collection, allowing businesses to automate the transfer process and efficiently manage large volumes of data.
  • Data Import: Data can be manually imported into the CDP using various file formats like CSV, Excel, etc.

The Road Ahead: Real-Time Data Collection

Another standout feature of a CDP is its capability for real-time data collection. As soon as a customer interacts with your dealership—whether by visiting your website, making a purchase, or posting a review—the CDP updates the customer’s profile. This allows for highly timely and personalized customer interactions, which can significantly enhance engagement and conversions.

In conclusion, a CDP collects data by pulling together a vast array of customer information, across both digital and physical touchpoints. By creating a unified customer view, a CDP enables dealerships to understand their customers better, deliver personalized experiences, and drive sales and profitability. As the automotive industry continues to evolve in the digital era, leveraging the data collection power of a CDP can truly put a dealership in the driver's seat of success.

No items found.

Sign Up for Dealership Middleware

Orbee's middleware technology provides detailed analytics on all marketing campaigns, so your dealership can see what's working and what's not.

Orbee Dealership Middleware
Under The Hood

The Latest Trends and Strategies in Automotive MarTech

Subscribe to Under The Hood to receive updates about MarTech news and Orbee product updates so your dealership can leverage the most advanced strategies

Company Email*