A Treasure Trove of Customer Data: Visualizing Customer Mindsets with a Combination of CDP and PDP

In this article, we introduce practical approaches to customer segmentation and digital marketing using CDP and PDP. We will explain specific methods that directly lead to improved LTV by combining customer behavioral history with product information and deepening understanding of customers with diversified values.

Essential tools for improving LTV. An explanation of CDP and PDP

CDP (Customer Data Platform) is a system that centrally manages customer data and optimizes marketing activities. It collects and integrates data from various sources, such as customer behavior, purchases, and attribute information, to create a consistent customer view.

PDP (Product Data Platform) is a platform that aggregates and manages all kinds of product-related data. It centrally manages not only basic product information such as product name, size, and color, but also information needed for digital sales, such as AI-powered feature tag assignment, supporting sales and marketing activities.

Forward-thinking manufacturers and retailers that leverage data have quickly adopted these tools and begun working toward 1-to-1 marketing tailored to customers' lifestyles and values. Recognizing that only companies capable of centrally managing and maximizing the vast amounts of data sitting within their organization will survive in the coming era, they are taking action by appointing CDOs (Chief Data Officers) and hiring data scientists.

Purchase history alone cannot reveal purchasing psychology

By aggregating demographic information such as age, gender, and household composition, as well as purchase histories such as ID-POS, into a CDP, you can record and accumulate data on 'when, where, and what kind of customer bought what'.

Even simply consolidating customer data that had previously been managed separately by different departments creates significant value. It is no exaggeration to say that adopting a CDP is the starting line for digital marketing.
However, the goal is not merely to introduce a CDP and consolidate customer data within the company; the real key is to capture the purchasing psychology behind it. To analyze and understand purchase psychology, consider what kind of products are being bought? An individual's values and lifestyle have a major impact on everyday purchasing decisions. This is an area that could not be fully captured by previous data analyses centered on purchase history, such as basket analysis and RFM analysis.

By introducing PDP to address the above challenge, products tied to purchase history such as ID-POS are given feature tags—keywords extracted from consumer reviews using AI—and, when combined with customer data, they finally become living data. Introducing PDP offers the following three benefits.

Turning customer values into data: Feature tags help visualize customers' values. By analyzing purchase histories aggregated in the CDP together with feature tags assigned in the PDP, you can extract customer insights that reveal what kind of values a customer has.

Discover hidden market needs: If you have POS data, you can easily analyze not only your own products but also competitors'. By classifying your products and competitors' products with feature tags, you can uncover hidden needs in the market.

Optimizing ad strategy: By placing the keywords that resonate most with customers front and center for each product, you can improve ad effectiveness. You can move from one-size-fits-all messages to ads optimized for each customer and product.

Integrating CDP and PDP to achieve values-based segmentation

By linking CDP and PDP, segmentation based on customer values becomes possible.

Value-based segments make it possible to deliver content and campaigns tailored to customers' values, increasing engagement.

For example, if you recommend low-calorie products, diet equipment, or articles that help with dieting to people who frequently buy products tagged with 'health-conscious' or 'diet,' you can give customers the reassurance of 'they understand me'. Providing a personalized shopping experience that reflects each customer's values builds trust in the brand and contributes greatly to improving LTV.

Conclusion

In this article, we explained the limitations of analyzing purchase history alone, the importance of product attributes, and how value-based segmentation can be achieved by linking CDP and PDP. As a product information platform, Lazuli PDP provides a new approach to marketing that leverages product data. To deepen customer understanding and establish a competitive advantage in the market, let's use Lazuli PDP and make data-driven decisions.

At Lazuli, we develop and provide "Lazuli PDP," which offers product data and data generation needed for maintaining and processing product masters in data analysis. If you are struggling with CRM optimization or making use of internal company data, please contact us here.

Learn more about Lazuli PDP here: https://corporate.lazuli.ninja/feature/