Performance marketing

Unbundling the Customer Data Platform – CMSWire

Summary

PHOTO:
Adobe Stock

Businesses need a first-party customer data platform now more than ever. Anonymous customer identifiers — cookies and device IDs — are disappearing, and a first-party data strategy is critical for companies to reach and engage customers.

Until recently, the only way to achieve this vision was to implement a customer data platform (CDP). When fully implemented and adopted by all teams within a company, a CDP provides great value to a business’s bottom line.</p…….

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PHOTO:
Adobe Stock

Businesses need a first-party customer data platform now more than ever. Anonymous customer identifiers — cookies and device IDs — are disappearing, and a first-party data strategy is critical for companies to reach and engage customers.

Until recently, the only way to achieve this vision was to implement a customer data platform (CDP). When fully implemented and adopted by all teams within a company, a CDP provides great value to a business’s bottom line.

Unfortunately, not all CDPs are fully implemented and adopted by the teams they are intended to serve. CDPs introduce new and often redundant work to organizations where people and resources are already taxed with other pressing full-time responsibilities. More modular approaches to customer data management are emerging in this context, and this “unbundled” approach better aligns with existing internal processes. Better alignment means less work, less redundancy and more adoption by the company at large.

The Bundled Components of a CDP

To understand what is being unbundled, let’s break down the services a CDP provides. A CDP vendor provides both a database and software to perform a few or all of these four functions.

  1. Ingestion: Collecting events on your customers from every martech systems in use.
  2. Unifying the Customer Record: Create a single source of truth for the customer, their profile and interaction history.
  3. Intelligence and Decision Making: Analyze for cohorts and conversion and segment customers in audiences.
  4. Activation: Push enriched profiles and segments to marketing channels.

PHOTO: Boston Consulting Group

Boston Consulting Group published an article, “With Customer Data Platforms, One-to-One Personalization Is Within Reach,” including this slide which visualizes the four functions well.

The first two functions — ingestion and unification — result in a data warehouse containing a 360 degree view of the customer that can support any number business scenarios:

  • Product data: Actions they’ve taken within your application (like what items have been viewed or left abandoned in their shopping cart). 
  • Sales data: Where a customer is in their buying journey.
  • Marketing data: What blog posts they’ve read, how they first landed on your site, etc.

The third and forth functions — analysis and activation — turn data into action by segmenting consumers who can be activated through the appropriate channels, e.g., email, SMS, CRM, advertising and on-page personalization.

Note: As defined by the CDP Institute, only the first and second items — Ingestion and Unifying the Customer Record — need to be present to be considered a CDP. However, most CDP vendors provide Intelligence and Activation capabilities as part of an end-to-end solution for customers.

Related Article: Lessons Learned From CDP Implementations

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Source: https://www.cmswire.com/digital-marketing/should-you-unbundle-your-cdp/