Thank you to all those who joined us for today's webinar, "Executive Guide to Enterprise Customer Data Platforms." Did't make it live? Not to worry, we have the recording for you here and took notes for you below.
During the webinar, David Raab shared insights from trending research on enterprise Customer Data Platform (CDP) requirements and discussed with Dr. Omer Artun how B2C marketers can best leverage CDP solutions to engage and delight customers. Our speakers:
|David Raab||Omer Artun|
|Founder of the CDP Institute||Founder & CEO of AgilOne|
5 Things we covered the webinar
- What is a Customer Data Platform (CDP) and its growth in the market
- Why you should consider a CDP for your enterprise B2C business
- Common misconceptions and the differences between CDPs, CRMs, DMPs and in-house connectors for your customer data sources
- Real world use cases and impacts CDPs have had on top retail brands
- Five Things to look for when evaluating an enterprise CDP
Notes from the webinar
CDPs enable marketers to fully leverage omni-channel customer data for marketing, with the agility and data openness that can only come with a SaaS platform-based approach. The CDP promise is tantalizing, but it's important to understand what qualities will meet the unique demands of your enterprise business.
All CDPs Have 3 Commonalities
- They put the marketer in the driver's seat
- They build a unified customer database, leveraging data across channels and tools
- They are built to be open and let you connect your data between external systems
Many CDPs Meet Some Other Characteristics
- Most are on the cloud/SaaS, although some can be on site
- Specialized data structures & real-time access
- A Majority of CDPs also specialize in business intelligence, predictions, campaigns
The category isn't that new. Customer Data Platforms were defined as a category in 2013. Gartner first mentioned CDPs in 2016, and now other researchers like McKinsey are reporting on the migration and benefits CDPs can provide enterprise B2C companies.
More than 30 vendors globally call themselves CDPs. There has been over $700 million in the funding of CDPs to date with more than $300 million in revenue in 2016. The expected revenue growth rate by 2019 is $1 billion - but David Raab predicts higher!
Why you should consider a CDP for your enterprise B2C business
Driving the growth of CDPs is both the demand from marketers who want to manage and leverage
customer data as well as the demand from consumers for unified, personalized, buying experiences.
There is a need for unified customer data and there is ever growing growth in the number of channels and systems where customers are creating valuable data.
Why CDPs over other customer data tools?
CDPs provide you a full view of your omni-channel customers, can be fully integrated into your tool stack, are tailored to specifically empower marketers.
The differences between DMP, CRMs, In-house built customer data systems and CDPs
CDP Misconception #1: “It’s Just a DMP”
- DMP are for ad audiences, while CDPs can be used for many purposes.
- DMP are optimized for real time selections where as CDPs have multiple access methods.
- With a DMP, you get a flat list of attributes. When you have the CDP taking in all of your customer data sources, you get a much more complex and deeper understanding of your customers.
CDP Misconception #2: “It's Just a CRM”
- CRMs are operational systems for your sales team, call-center, and service folks. CDPs allow you to analyze customer behavior and trends.
- CRM's are optimized for transactions by individual users were as a CDP is optimized for set operations like segmented campaigns.
- CRMs only store current information where as CDPs can manage keeping in old data such as past addresses which help you better predict customer behavior and create more personalized engagements.
- With a CRM the data is primarily used internally, in a CDP however, the data is shared externally - making all of your tools smarter and your marketing efforts optimized.
CDP Misconception #3: “You Can Build a CDP In-house”
- In-House you use custom integrations between the various sources you can connect, however in a CDP this is pre-build for you.
- You have to purchase or home build identity management methods, like house holding, however this comes standard in CDPs.
- You have added costs for each, specialized data stores, where as CDPs have multiple data stores built in.
- Without a CDP, you have to design everything from scratch and the trial and error can be costly as well as future changes to accommodate new tools and integrations. With a CDP, the platform is always up-to-date with industry best practices.
Real world use cases and impacts CDPs have had on top retail brands
Leveraging AgilOne, lululemon learned that customers who engage on all channels have a 10% higher spend. Using AgilOne as their CDP, they have been able to provide thier channel marketing leaders with personalized, actionable data that allows them to genuinely engage with their customers. The results? 50% jump in website visits, 25% boost in customer participation at local store events, and 15% increase in baseline revenue from digital marketing campaigns. Watch highlights from their recent session at NRF 2017 to learn more about their journey with AgilOne.
Their goal was to eliminate "batch and blast" campaigns and apply discounts only for the right shoppers. AgilOne helped them identify their customer's personas so they could have a more genuine relationship with their customers. The results? 30% increase in customer lifetime value for 75% of their customers. Check out their case study for more information!
Watch the webinar for more, real company examples of how they grew their customer engagement and revenue through using AgilOne as their CDP.
Five things to look for when evaluating an enterprise CDP
2. The ability to scalably ingest online & offline customer data and connect to external sources.
3. Standard reporting capabilities on your unique customer profiles and usability for segmentation
4. Ability to leverage analytics and machine learning to ensure you have actionable insights form your data.
5. Connectors to your campaign execution tools with real-time speeds so you can delight customers with personalized experiences in the moment it matters.
For deeper details to help guide you through determining the best CDP for you, check out The Customer Data Institute's full guide here.
Blog exclusive: bonus Q&A from our experts for you
Q: Do CDPs typically deal with the desire to use single sign on to use data across all connected channels?
A: Yes- those websites that use single sign would pass the data and behaviors using the sign on data as the indentifier for that data. This how the platform can stitch the data across different channels.
Q: What would be the best way to implement a CDP: starting with traditional structured data (e.g. POS data, profile data, customer service data) and then move to big data (clicks, text, social data)?
A: CDPs will usually need 1st party data which can be POS data, customer data, customer service data, digital data, and more. However, you need some structure to your data in order for a CDP to take it in effectively. For example, if you have a customer comment on your twitter sharing a negative customer service experience, you need to give some structure and context to the CDP to help determine the good engagements from the negative ones. Once there is structure, marketers can take the appropriate, personalized actions.
Q: Can I create one CDP to support multiple (3-5) retail chains with their own customers?
A: Yes, but you should be aware of the potential privacy complaints that can come up if the customers you are engaging with across chains don't know that your retail chains are connected. For example, in the US you can violate CAN-SPAM and US privacy laws if customers sign up to receive marketing from one of your brands but did not consent to have their information shared with your other 4 brands. You should approach it from a customer perspective and consider your relationship with them across brands first when evaluating CDPs for your business.