A customer data platform (CDP) is a system that collects and integrates customer data from across the enterprise, to create a 360-degree view of the customer. It provides a single view of customers across all channels, including social media, mobile applications, physical locations, and more.


Customer Data Platforms are a key component of the customer-centric business. It is a type of technology that helps marketers understand their customers better. It provides them with the necessary knowledge to help them improve their marketing campaigns. The CDP solution is designed to share insights from this data to provide better personalization and targeted marketing and use your customer data to make smarter decisions.


How will you choose whether to Build it or Buy a Customer Data platform?

The decision to build or buy a customer data platform is not an easy one. Many factors need to  be taken into serious consideration. The first step in this process is to identify the goals of the company and how they want to use the CDP. There are many different types of CDPs on the market, each with its own set of benefits and drawbacks. It can be difficult for companies to choose which one is best for them because there are so many options.


Data is the fuel of any business. It helps organizations implement data processes, make decisions, grow revenue, and keep customers happy.

There are a lot of factors to consider when building a Customer Data Platform.

  • The first thing you need to decide is what your data sources are going to be.
  • You then need to decide on how you want that data processed – do you want it in real-time or batch?
  • What kind of structure do you want the data in?
  • And finally, how do you want it stored?

Companies have been using customer data platforms for a while now, but it is still not a common practice. A lot of companies are still reluctant to invest in a customer data platform and instead rely on third-party providers.


Factors to consider while choosing CDP:


1. Time at Hand

How early do you need the CDP to be ready? In case the CDP has required immediately then it is a better option to opt for a SaaS company as using it most of the platform can be made up and running within no time. In addition, there is a negligible requirement for the integration of additional tools and components, and a lot of time is saved.

Building on the other hand can take a much longer time. As it is a Custom build CDP and made from scratch, it may take months to come to a point where it can be tested, altered, and finally deployed for use. To counter this, many CDPs are made using existing components and systems and implement a plug-and-play arrangement.


2. Cost Involved

A CDP can be built or bought, but it’s important to weigh the costs and benefits of both options before committing. A built CDP will save money because it will be cheaper than buying one outright. It also comes with the benefit of customization, which means that it can meet your specific needs much better than a pre-built solution would be able to do. The downside is that building a CDP takes time, which means you’ll need to hire developers and spend time on developing the software itself before you can reap any benefits from your investment leading to an increase in CDP costs.

Price points for buying a CDP are usually determinable and easy to predict. For most SaaS companies a price is quoted and defined clearly, enabling you to stick to a budget by going for a certain package or plan, but there may be some customization or flexibility sacrifices made in the process.

3. Features and Functionality

Do you have a clear vision of what you are expecting from your CDP? If yes, it may be a better option to consider building the CDP yourself as many third-party companies only have a certain amount of flexibility that they can offer on top of the standard platforms that they offer. Consider what the midway could be to get a part of what you want and what they can provide, and if that is too much of a sacrifice for the functionality of your required CDP and act accordingly.

4. Knowledge and Expertise

Ponder over whether your team has the required expertise to bring your vision or ideas to life. Building a platform can bring about a truckload of challenges in terms of design, technology, and implementation. Having the potential to carry out appropriate CDP Analysis, determining the optimal design, and developing the same is a major task. If gaining technical know-how is an area of concern maybe it is better to outsource the same from a company that does these projects all the time.


5. Core Competence

Once the platform is built it is extremely important to make sure it is competent with the market and competitors and provide the benefits it was made to, in the best way possible. As it is said, experience plays a huge part in ensuring the success of the CDP, and weighing the advantage of developing and deploying your platform against the on-ground benefit it is providing is essential to determine if it is better to get it made using optimal techniques and processes from a third party or not.


Customer data platforms are a powerful tool for marketers and analysts. They provide the ability to analyze customer data in a centralized location and apply that information to marketing campaigns and hence are a good investment to make. Choose whether to buy one or build one based on the above factors and you’ll be good to go.


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