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Do I Need a Customer Data Platform (CDP)? What Kind? In January, we defined what a CDP is and where it fits into the data management ecosystem. We detailed what it does versus other data management engines such as EDW, CRM, and DMPs. So, you understand that as the Marketing Leader, you need to take ownership of Customer Data and put in place a system that will: - Help present a unified and persistent view of customers - Let data flow back and forth from the marketing automation stack for executing campaigns - Perpetually re-ingest the most current version of the data based on interactions But you’re still wondering whether Customer Data Platform (CDP) is the right solution for you. Why not a CRM or a Marketing Cloud that lets you do all that in other ways? In this issue, we help you explore the next logical question: Does my organization specifically need a CDP (or would some other data engine be a better fit?). In a recent article on MTA, Anthony Botibol, Marketing Director at BlueVenn said, “A Customer Data Platform (CDP)as an evolution of something all modern marketers (should be) familiar with - a marketing database. In this case, a Customer Data Platform (CDP) is a marketing database purposebuilt for the API-driven world and ‘pick and mix’ marketing technology stacks in mind, while also allowing for the integration of offline sources and legacy database and infrastructure”. This gives you some idea of who could use a CDP.


THE 5 BIG QUESTIONS TO DRIVE MORE CLARITY ON YOUR Customer Data Platform (CDP)DECISION: 1. What is the purpose and goal of collecting and managing customer data? All marketers want to analyze the data, better understand segments and personas and run ever more targeted marketing campaigns. But what kind of analysis are you specifically after? For example, DMPs hold anonymous attributes that can be used for better ad targeting but won’t connect back either upstream or downstream to the rest of your customer data. If targeted advertising or ‘personalized' website experiences are your focus, that may well be enough. If you want to leverage customer data to execute journey wide, personalized customer experiences and drive engagement, you will need a CDP. CRMs will give you data on prospects and customers but won’t be able to ingest and integrate data from varied marketing campaigns and unstructured sources. If you tend to use the data for several discrete campaigns to customers, that should work. But if you want customers to have a consistent brand experience irrespective of the marketing channel or data source; and you truly want to join the dots between customer data from multiple internal and external, structured and unstructured, identifiable and anonymous data points, you need a Customer Data Platform (CDP). 2. How complex is the omni-channel ecosystem where your customers live and what is the volume of data you will be managing? Everyone generates multitudes of data. However, what is it you want to do with the data? How high is the need for cross-channel insight from the omni-channel data? If your data requirements, as well as the omni-channel interaction platforms, are wide, diverse and evolving, a Customer Data Platform (CDP) will help set up a robust foundational platform for the ever-evolving and growing data, and data sources. If you had extremely limited, regulated and industry-specific data requirements, from a very limited set of pre-defined sources, you could probably work with a CRM or even the broader organizational data warehouse. If your data sources, internal data applications/ users, and martech stack are all growing in volumes and complexity, you want to have a single reservoir that can ingest, transform/ enrich and make accessible the data to this expanding user base. 3. What resources do you have at your disposal to really own the data? How much ability in terms of skills and resources you have to manage data at that complexity? How much control do you – as a marketer- want/need/wish to exercise - over the customer data? CDPs are marketing owned and managed systems- so be ready to allocate some expertise to derive optimal results from it and be clear about how closely you want to work with the data. Additionally, be aware of the silos in your marketing stack. A Customer Data Platform (CDP) can help remove the silos by offering a single source of back end data; but also, if you are a very large and diverse marketing team with multiple lines of business/ multiple geographies etc., a CDP can equally offer all user groups access to the data for their own purposes while still retaining integrity and centrality. 4. How complex is your martech stack? An omni-channel environment needs a data management system that offers flexibility, real-time responsiveness to customer signals, and meaningful personalization. The question is, how great is your need to run synchronized and orchestrated campaigns across multiple channels with consistent messaging to customers? A CDP lets all marketing channels – CRM, Email marketing, AdTech, Website, Mobile marketing etc. – dip into the same single source of truth to simultaneously serve customers in an omni-channel environment. If you like the freedom of having multiple marketing technologies in your stack without having the liability of being locked-into a single marketing cloud because of data and integration constraints, a CDP is the right answer. It gives you the flexibility to work with multiple martech tools while still owning and housing

your data centrally, securely, and under your control. As Matt Parisi from Tealium puts it, ‘how ‘portable’ do you want your data foundation to be? 5. How important are security, governance, and compliance to your customer database? Access control, user management, and mobility are all important functionalities for your data management engine of course. But increasingly, compliance and security are also getting regulated to the extent that a formal work flow is needed within whatever system you choose to ensure these are met and complied with. CDPs offer the best compliance with GDPR as well as data privacy compliance in the United States. However, the exact extent of coverage is worth delving into with each individual prospective service provider. When you’re ready to proceed with exploring a CDP solution, think about what kind of Customer Data Platform (CDP) will best address your needs. CDPs that are focused on different aspects of customer data management. THE 3 CATEGORIES OF Customer Data Platform (CDP) Once you clarify whether your focus is on better data efficiency, driving profits with data applications, or risk mitigation and compliance with customer data, approach your choice of partner from the functionality perspective. How well will the solution help you: •

Collect the data - breadth, and depth of platforms it can ingest data from

Clean/ structure/ enrich/ analyze the data – how clean, unified, real-time do you want the views; what kind of insights do you want from the data

Leverage the data – allow multiple martech tools to access data to execute campaigns or to actually execute the campaigns directly

David Raab, Founder, CDP Institute and MarTech Advisor Category Expert on CDP weighs in on which types of companies are best suited for each ‘type’ of Customer Data Platform (CDP)

5 AREAS THAT NEED CLARITY IRRESPECTIVE OF THE SOLUTION CHOSEN: 1. Data gathering: Clarity on how the Customer Data Platform (CDP) gathers data, at what speed, from how many sources. How easy is it to add new sources of data – what does integration involve? (Marketing tools such as email marketing, sales automation, customer service, CRM, mobile marketing, social media etc. + devices such as IoS, Android, etc.)

2. Data treatment: a. Clarity on how it cleanses, normalizes, standardizes, transforms and enriches the data gathered from multiple sources in multiple formats.

b. Clarity on the breadth and scope of analytics it delivers as well as the reports it can generate for various internal stakeholders. What will you know about your customers as a result of using the CDP? 3. Data distribution: Clarity on how it provides multiple tools in the martech stack access to the data to execute campaigns seamlessly. (Mobile marketing, email marketing, sales automation, customer service and CRM, mobile marketing, social media etc.) OR clarity on how it executes the range of customer interactions centrally 4. Governance: Clarity on how it addresses governance, access control, user management and compliance concerns 5. Usability: a. Demonstrate the user-friendliness of the interface and ease of use for regular marketers who will own and operate the Customer Data Platform (CDP) b. What is the customer success/ onboarding/ adoption support provided for teams with different levels of technical expertise and resources? Read more on Marketing Infra - Data .

Do i need a cdp what kind  

Anthony Botibol, Marketing Director at BlueVenn said, “A CDP as an evolution of something all modern marketers (should be) familiar with - a...

Do i need a cdp what kind  

Anthony Botibol, Marketing Director at BlueVenn said, “A CDP as an evolution of something all modern marketers (should be) familiar with - a...