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CDP - Accelerating new era of Digital Marketing

Business today has more data than ever before. This data can be useful in ways like understanding customer behavior across various touch points, Customer purchase patterns and many more.

Customer data platform is one such tool which can help marketers with bringing siloed data to a single system and using this data to understand each and every single customer. This data is further leveraged by sending to various marketing tools, campaign and to improve the overall customer experience. 

It has been estimated that the CDP revenue will reach $1.55 billion in 2021, a 20% increase over 2020, to $10.3 billion by 2025 that is 10 times more in just 5 years.

But why has there been a sudden rise of CDP in the market?

While the COVID-19 pandemic has had a dampening effect on business, it also seems to have raised interest in precisely the types of solutions that Customer Data Platforms deliver. There has been changes in the engagement strategy between the marketers and the customers to communicate efficiently. 

Did you know, according to a research survey, CDP equipped organizations outperformed others by 2.5X!!

Marketing executives lead dozens of applications to manage, analyze and act on a large volume of first-party customer data. But despite increasing efficiency, the booming MarTech ecosystem faces problems of data redundancy, accuracy, and integration.

CDP img 1

Here CDP comes as our savior as it helps marketers in automation of customer data accuracy and integration.

Businesses are rapidly integrating Customer Data Platform (CDP) to their MarTech stacks as with stay-at-home orders and social distancing guidelines spurring the movement of customer interactions – both B2B and B2C – to digital channels, marketers are interested in technologies that collect data from those interactions, unify them, deliver insights and enable campaign orchestration.

A CDP is not a CRM, DMP

CDP, DMP and CRM might sound synonymous as they share overlapping features but there are significant differences. 

DMP (data management platform) gathers unknown consumer data from their online behavioral tracks to show the broad view patterns and demographics driving customer decisions. It primarily focuses on third-party data to segment and build audiences that look like first party customers. One of the biggest differences is that it can’t store PII data and hence can’t differentiate between customers. They are like a pool of cookie data with pre-built anonymous audiences to improve display ad targeting.

CRM (customer relationship management) systems can track existing customers. They compile customer data and are often used as the organization’s centralized data hub. However, it provides marketers with minimal system access and control and can’t identify or engage with anonymous individuals.

CDP (customer data platform) greatest focus is on accumulating customer data on first party data. It can store both PII and anonymous customer profiles in a central hub that integrates data from all the organization’s various software and web. The data then can be used for marketing analysis, single view creation, segmentation, and insight discovery, with the goal of increasing the effectiveness of omnichannel marketing campaigns.

img 2

Solution

PII Data

Anonymous Data

Semi- & Unstructured Data

Single Customer View

Real time ingestion

Analytics Capabilities

Cross Channel Personalization

CDP

yes

yes

yes

yes

yes

yes

yes

CRM

yes

no

no

no

no

no

no

DMP

no

yes

no

no

yes

yes

no

Top CDP Vendors 

  1. Tealium 

Tealium specializes in pulling fragmented data from multiple sources into a unified version which enables businesses to collect, analyze and create customer data while protecting the privacy of customers’ personal information. It includes AudienceStream CDP allowing marketers to develop custom rules for customer profiles, establish identities across devices and channels, and take actions in real time. Pricing is based on the number of events collected with included service hours based on the volume tier.

  1. Treasure Data 

Treasure Data provides the ability to aggregate and translate massive volumes of scattered and siloed data. Segmentation and predictive scoring are key features of this platform to run configurable propensity models and precisely target buyers for cross-channel campaigns. It identifies potential customers and automatically create segments. It is known for providing premium level customer support and pricing is based on number of known profiles. 

  1. Exponea 

Exponea is designed to be a single solution for communication along the entire customer journey which combines omnichannel campaign execution with advanced AI-driven analytics and personalization. It is top rated for being user friendly and frequently updated. They offer three product packages -- CDP, Campaigns or CDXP and each is available in Grow, Scale or Enterprise bundles to fit any budget 

  1. Lytics 

Lytics improve business performance by bridging the gap between the customer data and Lytics’ powerful AI engine  It facilitates businesses to orchestrate and optimize workflows on moving customers through goal-based stages in the lifecycle, from procurement, to purchase, to increased lifetime value. Pricing based on the volume of known customer profiles and number of events.

Capabilities of CDP vendors 

CDP img 4

 

Steps to making an informed purchase

Understanding current marketing processes, knowing how to measure success and being able to identify where improvements are required, are all critical parts of the CDP decision-making process.

Step One: Do you need a CDP?

Step Two: Define the use cases

Step Three: Identify and compare appropriate CDP vendors

Step Four: Schedule the demo and check if that CDP is the right fit

Step Five: Check references, negotiate a contract

 

Conclusion

CDPs have emerged as a vital tool for customer data management, where they serve as the “single source of truth” for known and unknown profiles. The amalgamation of data from multiple sources which gives rise to a unified and accessible customer data to the marketers has become an essential building block for brand marketing success. As the technology continuously progresses, customers expect a consistent & personalized targeting across different channels of media.

 CDPs provides us with such great benefits which can open doors to new set of marketing opportunities. Its ability to unify and normalize first-party customer data, improve data accuracy, target relevant leads, and market personalized campaigns makes it an essential commodity. Importantly, standalone CDPs also free marketers to use best-of breed solutions in other categories while still maintaining a single, consistent view of all a customer’s or prospect’s interactions with the brand.

Sources: Enterprise Customer Data Platforms: A Marketer’s Guide

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