{"id":10374,"date":"2022-06-27T11:23:12","date_gmt":"2022-06-27T11:23:12","guid":{"rendered":"https:\/\/teamheller.com\/?p=10374"},"modified":"2025-08-19T20:49:17","modified_gmt":"2025-08-19T20:49:17","slug":"why-customer-data-platforms-might-be-the-next-big-thing-in-segmentation-for-nonprofits","status":"publish","type":"post","link":"https:\/\/teamheller.com\/resources\/blog\/why-customer-data-platforms-might-be-the-next-big-thing-in-segmentation-for-nonprofits","title":{"rendered":"Why Customer Data Platforms Might Be the Next Big Thing in Segmentation for Nonprofits"},"content":{"rendered":"\r\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">Most nonprofit organizations understand the value of data. For years, nonprofits have relied on using data for complex segmentation in direct mail and email marketing.<\/span><\/p>\r\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">As we at Heller Consulting <a href=\"https:\/\/teamheller.com\/guides\/the-nonprofits-2022-guide-to-digital-transformation\" target=\"_blank\" rel=\"noopener\">keep our eye on trends in technology and the nonprofit sector<\/a>, one thing we see on the horizon is the potential of customer data platforms to help nonprofits use the ever-growing number of systems and data points to apply even more robust segmentation in marketing and fundraising. <\/span><\/p>\r\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">Let\u2019s look at some basics about this category of software and why nonprofits should care about it.<\/span><\/p>\r\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt; line-height: 107%;\"> What is a customer data platform<\/span><\/b><span style=\"font-size: 12.0pt; line-height: 107%;\">? <br \/><\/span><\/p>\r\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">A customer data platform (CDP) is software that aggregates customer (or constituent, donor, etc.) data to create a centralized profile of an individual. Its main function is to maintain unified customer profiles so that you can use this information to market to customers more effectively and efficiently across <a href=\"https:\/\/teamheller.com\/resources\/blog\/4-approaches-to-building-a-nonprofit-technology-stack\" target=\"_blank\" rel=\"noopener\">your entire technology ecosystem<\/a>.<\/span><\/p>\r\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">The idea behind CDPs is that today\u2019s organizations have multiple software systems for various purposes, and constituent data is scattered among those different systems. A CDP: <\/span><\/p>\r\n<ul>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">Brings together data related to a constituent\u2019s identity (such as email addresses and phone numbers) from your multiple systems.<\/span><\/li>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">Reconciles everything your organization knows about the constituent.<\/span><\/li>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">Makes all of the data about that constituent available to other systems in real time so that you can present constituents with personalized marketing and fundraising experiences. <\/span><\/li>\r\n<\/ul>\r\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">To help provide a standard definition for this category of tools, the <\/span><a href=\"https:\/\/www.cdpinstitute.org\/\"><span style=\"font-size: 12.0pt; line-height: 107%;\">CDP Institute<\/span><\/a> <span style=\"font-size: 12.0pt; line-height: 107%;\">established criteria for a CDP. According to the organization\u2019s definition, to be a CDP, the software must:<\/span><\/p>\r\n<ul>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">Ingest data from other systems<\/span><\/li>\r\n<li class=\"MsoNormal\">Unify a profile of all known data points about a person<\/li>\r\n<li class=\"MsoNormal\">Make the data available to other systems<\/li>\r\n<\/ul>\r\n<h2 class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt; line-height: 107%;\"> What makes CDPs different?<\/span><\/b><span style=\"font-size: 12.0pt; line-height: 107%;\"><br \/><\/span><\/h2>\r\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">You might be thinking, \u201cCDPs sound a lot like customer relationship management (CRM) systems or data warehouses.\u201d And it\u2019s true that these technologies can all help your organization manage and use your data more strategically. But there are some key differences:<\/span><\/p>\r\n<ul>\r\n<li class=\"MsoNormal\">\r\n<p><span style=\"font-size: 12.0pt; line-height: 107%;\">CRM systems are focused on managing information about an organization\u2019s relationships and interactions with constituents. And while it\u2019s true that a unified profile was once part of the vision of customer relationship management (CRM) systems, the reality is that CRM systems are now often a core system for many organizations but are one of multiple software systems in the technology mix. <\/span><\/p>\r\n<\/li>\r\n<li class=\"MsoNormal\">\r\n<p>Data warehouses are more focused on long-term data storage.<\/p>\r\n<\/li>\r\n<li class=\"MsoNormal\">\r\n<p>CDPs are focused on unifying volumes of information about individuals from an organization\u2019s different systems and making it available real-time for highly personalized marketing.<\/p>\r\n<\/li>\r\n<\/ul>\r\n<p class=\"MsoListParagraphCxSpLast\" style=\"text-indent: -.25in; mso-list: l0 level1 lfo4;\"><b><span style=\"font-size: 12.0pt; line-height: 107%;\"> How can nonprofits use customer data platforms?<\/span><\/b><\/p>\r\n<p class=\"MsoListParagraphCxSpLast\" style=\"text-indent: -.25in; mso-list: l0 level1 lfo4;\"><span style=\"font-size: 12.0pt; line-height: 107%;\">While CDPs have been recognized as a technology category for nearly 10 years, they\u2019ve been used mostly in the commercial sector. So, it might be easier to understand CDPs and why you <\/span><span style=\"font-size: 12.0pt; line-height: 107%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;\">would want to use one by considering a few use cases for nonprofits:<\/span><\/p>\r\n<ul>\r\n<li class=\"MsoNormal\"><!-- [if !supportLists]--><span style=\"font-size: 12.0pt; line-height: 107%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;\">At <span style=\"background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">UNICEF Netherlands, key details on donors, such as contact information, philanthropic interests, and donation history, were housed in disparate data silos. Without a unified source of information on donors, it was challenging to create and send personalized communications to each of them. To solve this problem, the team <\/span><\/span><a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/770819-unicef-netherlands-non-profit-dynamics-365\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 12pt; line-height: 107%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">implemented a CDP, Microsoft Dynamics 365 Customer Insights<\/span><\/a><span style=\"font-size: 12pt; line-height: 107%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">, to quickly and easily combine data from multiple sources, analyze the data to derive insights, and activate the insights via marketing and communication channels.<\/span><\/li>\r\n<li class=\"MsoNormal\"><a href=\"https:\/\/www.sas.com\/en_us\/customers\/the-nature-conservancy.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 12pt; line-height: 107%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">The Nature Conservancy chose CDP capabilities from SAS<\/span><\/a><span style=\"font-size: 12pt; line-height: 107%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"> to aggregate first-party and third-party marketing data into one place. This CDP enabled The Nature Conservancy to more easily combine offline data with digital campaign data and web analytics data into a single member profile, creating insights the nonprofit could act on.<\/span><\/li>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">One of our nonprofit clients here at Heller Consulting asked us to help them find new software to replace a custom-built segmentation tool that they were using for their direct mail program. However, there really aren\u2019t many standalone segmentation tools available today; most are built into other software and are limited only to the data in that software. So, in this case, a CDP is a powerful alternative for building segments by using data points from across the entire organization.<\/span><\/li>\r\n<\/ul>\r\n<h2 class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">Here are a few other examples of how nonprofits could use a customer data platform:<\/span><\/h2>\r\n<ul>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\"><strong>Data integration<\/strong> \u2013 Provide users across the organization with tools to bring together data from many sources and make it available to other systems.<\/span><\/li>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\"><strong>Profile unification<\/strong> \u2013 Combine constituent data points into a single 360-degree view offering a more complete perspective of the constituent\u2019s relationship across the entire organization.<\/span><\/li>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\"><strong>Segmentation<\/strong> \u2013 Easily drag and drop attributes, user behaviors (web, mobile, email, social) and other data enrichment sources to create complex audience segments for highly targeted marketing and fundraising outreach.<br \/><\/span><\/li>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\"><strong>Predictive modeling and analytics<\/strong> \u2013 Determine the likelihood to donate, propensity to give\/churn, lifetime value (LTV), and next best recommended action.<br \/><\/span><\/li>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\"><strong>Personalization<\/strong> \u2013 Offer a highly personalized digital customer experience across all marketing channels.<br \/><\/span><\/li>\r\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\"><strong>Privacy\/consent management<\/strong> \u2013 Centralize user consent to ensure that it is being respected across systems and channels to better meet compliance requirements.<\/span><\/li>\r\n<\/ul>\r\n<h2 class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt; line-height: 107%;\"> Learn more about customer data platforms for nonprofits<\/span><\/b><span style=\"font-size: 12.0pt; line-height: 107%;\"><br \/><\/span><\/h2>\r\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt; line-height: 107%;\">While CDP is relatively new to the sector, it offers great potential for nonprofits. We <a href=\"https:\/\/teamheller.com\/guides\/the-nonprofits-2022-guide-to-digital-transformation\" target=\"_blank\" rel=\"noopener\">continue to stay up to date on technology and the nonprofit sector<\/a>; so, if you\u2019d like to learn more about customer data platforms and determine if they\u2019re a fit for your nonprofit\u2019s needs, <\/span><a href=\"https:\/\/teamheller.com\/contact-us\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 12.0pt; line-height: 107%;\">contact us today<\/span><\/a><span style=\"font-size: 12.0pt; line-height: 107%;\">. We\u2019re ready to help.<\/span><\/p>\r\n<h2>Join the list<\/h2>\r\n<p>Want more nonprofit tech resources delivered to your inbox? Fill out the quick form below!<\/p>\r\n<iframe title=\"Quick Subscribe Form\" class=\"pardotform\" src=\"https:\/\/info.teamheller.com\/l\/734413\/2023-01-09\/46mk25\" width=\"100%\" height=\"500\" type=\"text\/html\" frameborder=\"0\" allowTransparency=\"true\" style=\"border: 0\"><\/iframe>\r\n","protected":false},"excerpt":{"rendered":"<p>Most nonprofit organizations understand the value of data. For years, nonprofits have relied on using data for complex segmentation in direct mail and email marketing. As we at Heller Consulting keep our eye on trends in technology and the nonprofit sector, one thing we see on the horizon is the potential of customer data platforms [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":10378,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[80],"tags":[],"ppma_author":[478],"class_list":["post-10374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nonprofits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Customer Data Platforms &amp; Why They Might Be the Next Big Thing in Segmentation for Nonprofits<\/title>\n<meta name=\"description\" content=\"A Customer data platform brings together data and reconciles everything your nonprofit knows about constituents.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/teamheller.com\/resources\/blog\/why-customer-data-platforms-might-be-the-next-big-thing-in-segmentation-for-nonprofits\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Customer Data Platforms Might Be the Next Big Thing in Segmentation for Nonprofits\" \/>\n<meta property=\"og:description\" content=\"Most nonprofit organizations understand the value of data. 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