WHAT IS YOUR PURPOSE AND GOAL FOR COLLECTING AND MANAGING CUSTOMER DATA?

5 BIG QUESTIONS TO ASK ABOUT CDP

HOW COMPLEX IS THE OMNI-CHANNEL ECOSYSTEM WHERE YOUR CUSTOMERS LIVE AND WHAT IS THE VOLUME OF DATA YOU WILL BE MANAGING?

WHAT RESOURCES DO YOU HAVE AT YOUR DISPOSAL TO REALLY OWN THE DATA?

HOW COMPLEX IS YOUR MARTECH STACK?

HOW IMPORTANT IS SECURITY, GOVERNANCE AND COMPLIANCE TO YOUR CUSTOMER DATABASE?

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THE EXPLAINER CDPA 12-part monthly series by MarTech Advisor in associa�on with the CDP Ins�tute

Unpeeling what CDP means to you, one ques�on at a �me

DO I NEED A CDP? WHAT KIND?

Issue 2/12 | February 2018

But you’re s�ll wondering whether CDP is the right solu�on or you. Why not a CRM or a Marke�ng Cloud that lets you do all that in other ways? In this issue, we help you explore the next logical ques�on:

Does my organiza�on specifically need a CDP (or would some other data engine be a be�er fit?).

In a recent on MTA, Anthony Bo�bol, ar�cleMarke�ng Director at BlueVenn said, “A CDP is an

evolu�on of something all modern marketers (should be) familiar with - a marke�ng database. In this case, a CDP is a marke�ng database purpose-built for the API-driven world and ‘pick and mix’ marke�ng technology stacks in mind, while also allowing for the integra�on of offline sources and legacy database and infrastructure”. This gives you some idea of who could use a CDP.

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1. What is the purpose and goal of collec�ng and managing customer data? All marketers want to analyze the data, be�er understand segments and personas and run ever more targeted marke�ng campaigns. But what kind of analysis are you specifically a�er? For example, DMPs hold anonymous a�ributes that can be used for be�er ad targe�ng but won’t connect back either upstream or downstream to the rest of your customer data. If targeted adver�sing 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 marke�ng 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 irrespec�ve of the marke�ng channel or data source; and you truly want to join the dots between customer data from mul�ple internal and external, structured and unstructured, iden�fiable and anonymous data points, you need a CDP.

2. How complex is the omnichannel ecosystem where your customers live and what is the volume of data you will be managing? Everyone generates mul�tudes of data. However, what is it you want to do with the data? How high is the need for cross-channel insight from the omnichannel data? If your data requirements, as well as the omnichannel interac�on pla�orms, are wide, diverse and evolving, a CDP will help set up a robust founda�onal pla�orm 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 organiza�onal data warehouse. If your data sources, internal data applica�ons/ users, and martech stack are all growing in volumes and

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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 marke�ng owned and managed systems- so be ready to allocate some exper�se to derive op�mal results from it and be clear about how closely you want to work with the data. Addi�onally, be aware of the silos in your marke�ng stack. A CDP can help remove the silos by offering a single source of backend data; but also, if you are a very large and diverse marke�ng team with mul�ple lines of business/ mul�ple geographies etc., a CDP can equally offer all user groups access to the data for their own purposes while s�ll retaining integrity and centrality.

4. How complex is your martech stack? An omnichannel environment needs a data management system that offers flexibility, real- �me responsiveness to customer signals, and meaningful personaliza�on. The ques�on is, how great is your need to run synchronized and orchestrated campaigns across mul�ple channels with cons istent messaging to customers? A CDP lets all marke�ng channels – CRM, Emailmarke�ng, AdTech, Website, Mobile marke�ng etc. – dip into the same single source of truth to simultaneously serve customers in an omnichannel environment. If you like the f re e d o m o f h av i n g m u l � p l e m a r ke � n g technologies in your stack without having the liability of being locked-into a single marke�ng cloud because of data and integra�on constraints, a CDP is the right answer. It gives you the flexibility to work with mul�ple martech tools while s�ll owning and housing your data centrally, securely, and under your control. As Ma� Parisi from Tealium , ‘how ‘portable’ do you want your puts it to be? data founda�on

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THE 5 BIG QUESTIONS TO DRIVE MORE CLARITY ON YOUR CDP DECISION:

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5. How important are security, governance, and compliance to your customer database? Access control, user management, and mobility are all important func�onal i�es for your data management engine of course. But increasingly, compliance and security are also ge�ng regulated to the extent that a formal workflow 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 compliances in the United States. However, the exact extent of coverage is worth delving into with each individual prospec�ve service provider.

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THE 3 CATEGORIES OF CDP

When you’re ready to proceed with exploring a CDP solu�on, think about what kind of CDP will best address your needs. Wait. There’s more than one ‘type’ of CDP available?

Yes, there are CDPs that are focused on different aspects of customer data management.

LDO EG N‘ RE EH CT OT RO DG ’?

“There may seem like there are many different “types”

of CDP currently on the market, but not all of them

have the same capabili�es. A true CDP must integrate

data across func�onal and channel-specific silos into a

central loca�on that allows for a single point of data

visibility. This posi�ons the organiza�on to make be�er

decisions about contextually relevant customer

interac�ons. If a CDP does not provide this single

customer view (what we call the ‘Golden Record’),

which is updated at the speed of business, then it

shouldn’t be categorized as a CDP in the first place.”

George Corugedo, CTO, RedPoint Global

Once you clarify whether your focus is on be�er data efficiency, driving profits with data applica�ons, or risk mi�ga�on and compliance with customer data, approach your choice of partner from the func�onality perspec�ve. How well will the solu�on help you:

P Collect the data - breadth, and depth of pla�orms it can ingest data from

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

P Leverage the data – allow mul�ple martech tools to access data to execute campaigns or to actually execute the campaigns directly

© 2018 All Rights Reserved. MarTech Advisor. Page 4

3 CATEGORIES OF CDP

1. Gather customer data from mul�ple source systems, link data to customer iden��es, and store the results in a persistent database.

2. Automated distribu�on of data to 3rd party analy�cs and marke�ng systems of your choice

3. Allows diverse applica�ons of data (across internal teams and tools) from a single unified data source

4. Gives you flexibility in choosing a martech stack without locking into a single cloud or set of solu�ons

1. Provide data assembly plus analy�cal applica�ons - the strength is analysis and ac�onable insights

2. Automated distribu�on of data (including segment lists) to 3rd party marke�ng automa�on systems of your choice

3. Stronger customer experience programs possible with insight and analysis (definitely segmenta�on; o�en machine learning, predic�ve modelling, revenue a�ribu�on, journey mapping) without execu�ng directly

4. More suited to marke�ng teams that have their own resources to analyze and deliver insights from the data

1. Combine data gathering, database crea�on, analy�cs and marke�ng campaign execu�on

2. Does not send data out to 3rd party execu�on partners of your choice

3. Besides data assembly and a basic level of analy�cs, offer customer contact, product or content recommenda�ons, outbound campaigns, customer journey orchestra�on etc. albeit without the level of complexity that custom built stacks comprised of 3rd party execu�on partners could offer

4. Work well for marketers looking for a less complex, lower-cost, all-in solu�on

DATA ASSEMBLY/ DATA ORCHESTRATION SOLUTIONS

ANALYTICS/ INSIGHTS FOCUSED SOLUTIONS:

CUSTOMER EXPERIENCE/ CAMPAIGN MANAGEMENT:

DATA ASSEMBLY FOCUSED CDP ANALYTICS FOCUSED CDP CUSTOMER EXPERIENCE CDP

Best suited for:companies that already have

advanced analy�cs and customer experience systems in place and only need a way to give those systems be�er

data.

Best suited for: companies where marketers need an

easy way to define customer segments and to automa�cally push those

segments to execu�on systems on a regular basis. Also, where marketers are expected to do their own data analysis and are not

experts in advanced analy�cal tools

Best suited for: companies with limited resources that

need an easy way to add customer experience

capabili�es drawing on unified CDP data. O�en

these are smaller companies or companies

that need to manage only a few channels such as

website personaliza�on or email marke�ng.

David Raab, Founder, CDP Ins�tute and MarTech Advisor Category Expert on CDP weighs in on which types of companies are best suited for each ‘type’ of CDP

© 2018 All Rights Reserved. MarTech Advisor. Page 5

5 AREAS THAT NEED CLARITY IRRESPECTIVE OF THE SOLUTION CHOSEN:

1. Data gathering: Clarity on how the CDP gathers data, at what speed, from how many sources. How easy is it to add new sources of data – what does integra�on involve? (Marke�ng tools such as email marke�ng, sales automa�on, customer service, CRM, mobile marke�ng, 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 mul�ple sources in mul�ple formats.

b. Clarity on the breadth and scope of analy�cs 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 distribu�on: Clarity on how it provides mul�ple tools in the martech stack access to the data to execute campaigns seamlessly. (Mobile marke�ng, email marke�ng, sales automa�on, customer service and CRM, mobile marke�ng, social media etc.) OR clarity on how it executes the range of customer interac�ons 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 CDP

b. What is the customer success/ onboarding/ adop�on support provided for teams with different levels of technical exper�se and resources?

GET ISSUE 1 OF THE CDP EXPLAINER (WHAT IS A CDP) IN PDF HERE

GET A PDF COPY OF THIS ISSUE OF THE CDP EXPLAINER (DO I NEED A CDP?) HERE

NEXT ISSUE:

March: CDP READINESS

— When are you ready for a CDP?

— What basics need to be in place before you get a CDP deployed? (data hygiene)

— What integra�ons are required with the CDP for it to work?

With addi�onal inputs from:

— The mPar�cle ar�cle ‘Selec�ng The Right Customer Data Pla�orm For Your Business’ available in the CDP Ins�tute Library — The by Ma� Parisi from Tealiumwebinar