With all the buzz around customer data platforms, companies are starting to shift their thinking from, "Do I need a customer data platform?" to, "Which customer data platform is right for us?" According to Gartner, inquiries into CDPs have quadrupled in the past year alone. That's a lot of hype... but why?
"Customers are trying to engage in an organic, holistic way, regardless of channels, while marketers are still living in this siloed world." - Karen Wood, Sr. Director, Head of Marketing
As the channels in which customers can interact with a brand continue to grow, it is becoming increasingly challenging for marketers to properly analyze their customer journey:
- 70% of companies use less than half their data to generate business value (Camelot Management Consultants, 2018)
- Data professionals waste 50% of their time searching for or recreating data (IDC, 2018)
If you weren't already on board with the CDP hype, those two stats alone should convert you into a believer.
I Believe! Now What?
The only thing more challenging than stitching together disparate data? Researching and evaluating CDP vendors. What was once an undefined category with a few select companies is now being overrun with more than 80 vendors trying pivot their offerings in an attempt to scrounge whatever piece of the CDP pie they can.
In order to sift through the noise these companies are creating, marketers must put their use cases front and center in their search for the right CDP. Below are the four most popular use cases types, and a few real-world examples we have experienced with our clients. (For all use case examples referenced in the webinar, view or slides or listen to the full recording here.)
- Outbound Marketing
- Email - Discounting based on likelihood to buy
- Not all customers need a reduced price to drive them to purchase, so why waste a discount on customers who willing to buy full price? Predictive modeling in CDPs helps marketers segment their customers and offer different promotions based on their likelihood to buy.
- SMS - Store abandonment
- Abandon cart campaigns are marketing table stakes. But why limit this to just digital abandonment? Using in-store wifi email capture via Euclid Analytics, marketers can track customers who browse in the store but don't purchase -- and send a store abandon campaign via SMS and leveraging CDP data.
- Email - Discounting based on likelihood to buy
- Digital Advertising
- Facebook/Instagram - Custom audiences
- If customers are unsubscribing from your emails, that doesn't necessarily mean they never want to hear from you. It just means email isn't a channel they are interested in. Using CDP data, you can reach these customers on their preferred channel, and keep them engaged with their brand.
- Dynamic Targeting - Improve ROAS
- Data from a CDP can feed into a programatic system such as Criteo for targeted advertising. With this, marketers can suppress ads for recent in-store buyers or target customers who aren't responding on other channels. The ability to hyper-target your display ads will greatly improve ROAS.
- Customer Experience
- Call Centers - Power your agents with data
- Give call center agents the ability to access a complete view of the customer they are talking to using a single view of the customer. This allows call centers to personalize the caller's experience, minimize call times, and improve overall customer experience.
- Clienteling - In-store personalization
- For high-end retailers, arming your sales associates with customer data from a CDP allows them to personalize each shoppers experience and build trusted relationships in the store.
- Analytics and API
- Attribution - Using Google Analytics
- CDPs will help marketers connect the dots between acquisition sources and customer lifetime value. Understanding your acquisition sources helps marketers allocate budget to the channels with the best ROI.
Top 5 Tips to Prioritize Your Use Cases
- Create Internal Alignment - many teams in an organization are driven by customers. Make sure they are all on the same page as to the goals and needs from a CDP.
- Evaluate Which Areas are Most Important For Your Business - we mentioned four popular use cases above, but not every business has the same needs. Determine what use cases are going to drive your evaluation early on.
- Identify Improvement Areas - what are you current missed opportunities and low hanging fruit that a customer data platform would improve?
- Determine Which CDPS will Support Your Use Cases - not all CDPs are created equal. Once you know your most important use cases, evaluate which CDPs offer functionalities to best execute those cases.
- Build a Campaign Roadmap - lay out what campaigns your brand is currently running, the impact each campaign has to overall value, and the ease of implementation. This will help you prioritize use cases as well as campaigns to focus on once a CDP is implemented.
For a sample layout of a client campaign roadmap, check out the webinar slides by clicking the button below!