The importance of customer experience to the prosperity of a company is greater than ever before. Numerous organizations are taking advantage of a customer data platform, also known as a CDP, to amass their customer information and make it accessible to other applications. This enables them to create a unique and enhanced customer experience. Results from Gartner’s 2019 Market Technological Survey showed that 43% of those surveyed had a fully functioning Customer Data Platform (CDP) in place and an additional 31% were in the process of establishing it. In this piece, we will be exploring the potential of CDPs (Customer Data Platforms) and how leveraging data tactics can reap the ultimate rewards for any organization.
Naras Eechambadi, founder and CEO of Quaero, an enterprise CDP provider, was interviewed by CMSWire regarding his perspective on customer data platforms. He mentioned the definition from the CDP Institute, which states that CDP is an “application that forms a consistent customer database that can be utilized by other systems.” Eechambadi made sure to point out that “neither the term ‘marketing’ nor the phrase ‘customer modeling’ appears in this definition.” Previous classifications classified CDPs as subservient to marketing endeavors, yet they have evolved into company-wide systems that provide services outside of marketing, including customer service, experience, and sometimes risk prevention and fraud.
Recognize What a CDP Can Do For Your Business
In April of last year, Gartner distributed another report called the Market Guide for Customer Data Platforms. It put forward that a CDP should be competent at concentrating data gathering, conjoining customer sketches from various sources, making and controlling segments, and initiating those segments in essential instruments.
When we asked Eechambadi how a CDP works in conjunction with a centralized data collection, he stated that “Many companies, particularly at the enterprise level already have a central data management system, such as a data lake and/or corporate data warehouses that houses much of their customer data. Where these exist, CDPs can source this data. However, the core databases do not always comprise of smaller sets of customer data that could be utilized to offer personalized services, such as the information that might be stored in marketing clouds and call centers.
Eechambadi went on to explain that this is often where the limitations of a business’ central data management systems comes into play, and where a CDP can really shine. “This data may also not be timely or immediate enough for certain marketing use cases. CDPs often have the ability to ingest data in real time and provide the ability to act on that information. In these cases, CDPs can then serve to feed these richer datasets bi-directionaly and back into the central data system after the fact, including any results and measurements from the actions taken.”
Determine How a CDP Fits Into Your Martech Stack
The assemblage of instrumentation and technology systems that an enterprise deploys is known as a martech pile. The CDP collaborates with the martech stack, but the true core of that stack depends on many aspects. Eechambadi discussed the between CDPs and a marketing stack, and remarked that it varies depending on what is the focus of the CDP, the way a business decides to take advantage of it, the business’ sector, data development, size, etc. Some CDPs have the capacity to be the foundation of a marketing stack, functioning as the data coordinator that can bring data from other martech systems that get customer information, while also supplying all of the engagement systems for particular channels, such as personalization, email, or sponsored media.
Generally, a CDP is meant to connect with multiple data sources which a company gathers, though if they use readymade or manufactured software, this will have an impact on the connectivity.
Eechambadi clarified the interconnectedness of CDPs as he pointed out, “They usually have connections that are ready-made for prevalent sources of customer information like ad management, tag managers, billing and ecommerce systems and paid media platforms for example Google and Facebook.” For programs that are not public, most CDPs have the capacity to create personalized links if necessary, though there could be additional effort and cost associated. Thus, they may be adjusted to attending to the tailored requirements of every purchaser, although several CDPs have more adaptability in this area than others.
How Is a CDP Going To Enhance the Customer Experience?
At its core, the main purpose of a CDP is to improve the customer experience. It is generally connected to marketing operations, but its ultimate goal is to craft a more customized journey for each customer.
When posed the inquiry concerning CDP and customer experience, Eechambadi asserted strongly that they are predictably connected. A CDP should be able to improve the customer experience strategy of a business by making their journey across multiple platforms and interactions easier. The organization’s customer strategy should be what guides the decision to select a CDP, not the other way around.
Peter Irikovsky, CEO of Exponea, was interviewed by CMSWire concerning CDP strategies. ” Irikovsky agreed with Eechambadi’s sentiment and said that “When developing a plan for providing customers with a better experience, it is vital that the strategy begins with a CDP program, not vice versa.” Customers nowadays pay great attention to being applicable and swift, so the most productive users of a CDP should have time availability and omnichannel configuration as basics when creating their program.
Irikosky is of the opinion that a CDP can help improve the client experience by surpassing the deficiencies of other techniques. ” He restated that utilizing customer lifecycle management and personalizing across different media is what a CDP is designed to do, but in the end what really matters is customer focused marketing. Businesses are beginning to understand that they must make a true shift which necessitates the use of a Customer Data Platform (CDP).
CMSWire also spoke with David M. The CEO and founder of the Customer Data Platform Institute, Raab, explained that a well-outlined plan of a CDP is key to achieving a positive customer experience. It is essential to take into account various facets when formulating a CDP strategy, for instance, the capacity to integrate source and channel systems, the value of the data at hand for CDP inputs, the competency of the personnel, and the degree of collaboration from other sections within the organization.
We, as consumers, experience the dissatisfaction of being guided to material, goods, and services that are of no use to us and have no relation to our wants and preferences. Many of us are familiar with being served content which attracts us, along with adverts that are connected to our hobbies. So how does a CDP facilitate such personalization? Eechambadi noted that Customer Data Platforms enable an in-depth overview of each individual customer, saying, “A major advantage of a CDP is the capability of establishing a a360-degree representation of every customer including their demographic characteristics, buying habits, transaction history, interaction across channels, multiple purchases from different companies and how long they have been purchasing, loyalty to certain brands, and price awareness.”
By being aware of the particulars of each client’s experience, a company can better satisfy their own objectives as well as that of their customers by providing content that synchronizes with these goals.
How to Build a Customer Data Platform
So, how do you build a CDP? For any customer data platform to function, there are three main steps involved:
Integration
The main job of a CDP is to consolidate and organize all applicable information into one cohesive data system. This service takes care of the issue of disparate data sets by connecting all your different sources and systems into a single location.
Organization
Once the integration of your data is complete, the CDP should have quality assurance measures in place. The process must uncover any uncaptured information, delete any duplicate records, and authenticate to make sure that the correct population and recipients are identified.
Identity Resolution
When all the information has been brought together, it is the customer data platform that is especially effective in blending data from a number of sources and correlating it with particular customer profiles. This process is referred to as data unification, and it facilitates the formation of complete profiles of every customer, granting you the ability to strengthen and accumulate intel as they engage with your business.
CDP Characteristics
There are a variety of businesses offering various CDP offerings, but the best of the best provide a few essential characteristics that every marketer should look for:
- Ready?to?Use Solution
All customer information is kept neatly arranged and can be accessed easily and quickly. A CDP does not require an expert level of expertise when it comes to implementation and management, unlike a traditional data warehouse. Technical resources will be necessary in order to create and maintain the CDP, however.
- Single Customer View
A CDP organizes and collects consumer information, which is then displayed in personalized data profiles for each customer. The existence of a comprehensive understanding of the customer is made possible by having all pertinent info related to them housed in one unified repository.
- Customer Data Unification
Combining various unreliable data points from digital and physical sources is used to make one integrated customer profile.
- Accessible Data for Third Parties
Information held in a CDP is available to be deployed in programs specially created for advertisement technologies and initiative campaigns.
Types of Customer Data Platforms
The customer data platform business has developed, resulting in various vendors being available. Providers are divided according to their consumers and the purpose for which they are to be used. Let’s take a look at some of the differences.
A Standalone CDP vs. CDP + Marketing Automation
It is essential to differentiate between CDP vendors whose product is only a CDP and those who offer CDP as well as added features. It is essential to be aware of what your supplier offers, as this dissimilarity could lead to significant disparities in the way that your company takes advantage of the CDP.
A Standalone CDP
A customer data platform existing on its own, with no other functions added on, is how it is understood to be. It takes in all of an organization’s internal information and forms entire profiles of every individual customer (a single customer account). Generally, a CDP (Customer Data Platform) with independent capabilities will provide analytic capacities, enabling detailed categorizations of the people you are targeting.
This data can be obtained by other systems, yet the single CDP is unable to carry out campaigns. Tools that are specifically designed to take advantage of the extensive data it has compiled are required.
For firms that own campaign execution technology, a CDP existing separately from other solutions might be the best option. Organizations that do not have the necessary capabilities should think about a combination of a customer data platform (CDP) and a marketing automation platform.
CDP + Marketing Automation
A combined customer data platform and marketing automation is the most advanced form of CDP. It combines the great qualities of an individual CDP with marketing activities, making a unified and efficient customer-focused marketing system.
Marketers have all the resources they need to craft phenomenal customer interactions, integrating AI-powered marketing strategies, immediate analytics, and UX refining with a CDP.
Using a CDP in conjunction with marketing automation can streamline processes and enhance productivity by unifying multiple commonly used applications in an interconnected system. It is not only pliable, but can also fit in with the technology stack you currently use. It conforms to what has already been put in place and meets any requirements you have.
How to Choose the Right CDP for Your Company
Once you’ve made up your mind that a Customer Data Platform is the right asset for your organization, you need to determine which provider to go with. There may appear to be a lot of sellers to pick from, so it’s necessary to have a detailed strategy for making your purchase.
Different firms will have dissimilar needs and utilization scenarios, yet a lot of the purchasing process ought to be identical across the majority of enterprises.
First, you need to define your use cases. How do you plan to use a CDP? Would you like to acquire a CDP with layers for implementation and personalization for online shopping? Do you require solely for identity resolution and separation of customers (placed distinctly in a CDP)? Responding to this inquiry will assist you in comprehending your needs more thoroughly.
Once you finish that, you can then compare your specifications to potential suppliers. Can they handle the use cases that you require? This furnishes you with the opportunity to construct a brief catalog of potential applicants.
Next, evaluate the vendors you’ve selected. Request they show you their system operational with a necessary instance, rather than depending on a provided preview that advertises only the very finest the platform offers. This will demonstrate if a conceivable resolution is suitable for you or not.
Finally, you can make your decision. You should consider sending out a request for proposal or perhaps try a trial run to make sure the option you decided on will answer your goals. If it has, congratulations! You’re prepared to begin capitalizing on all that a CDP can offer.
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