CDP Readiness: When am I Ready and What do I Need to Get Started?

In February, we dived into the different types of CDPs and which one may be the right fit for you. We explored the 3 major ‘categories’ of customer data platforms but if you are looking for a more feature-based comparison, refer to the recent report from the CDP Institute that compares the basic and distinguishing features of various CDPs available today.

You know what a CDP does, and you know what the different types of CDPs focus on.
This month, we talk about the next step - CDP readiness.
• Am I ready for a CDP?
• What basics need to be in place before investing in a customer data platform (CDP)?

Complete Article Available at https://www.martechadvisor.com/articles/data/cdp-readiness-when-am-i-ready-and-what-do-i-need-to-get-started/.

AM I READY FOR A CDP?

Marketing teams are having to evolve into the data-driven, customer-centric marketing team at breakneck speed. As the number of touch points increase, the possible channels for communication increase, so does the data being generated, irrespective of whether you are a big company or small business.

In the larger enterprises, obviously, a lot of the data capabilities have been developed on the fly - starting from a time when there was no formal concept of a customer data platform (CDP)in the first place. Data collection, analysis and application solutions were built up organically and often integrations were ‘cobbled together’ retrospectively. MarTech stacks were built in response to the increasing number of touch-points and channels via which customer interaction (and thus, data generation) was possible.

Enterprise level marketers may also have been let down either by their cloud vendors (who may have promised unified and actionable customer views at some point) or delayed by their IT teams who are occupied with building and operating enterprise-level data engines and offer less functionality, integration and flexibility than needed. In cases where there are binding legacy systems, this becomes even more of a constraint to performance.

Bottomline?
In spite of having data, and investing considerable time in collecting, managing and analyzing the data from multiple customer-facing applications, you are probably ready for a CDP if….
• You’re having trouble building a consistent, relevant, cohesive and personalized ‘multi-touch point customer experience’
• You are unable to track and measure conversion effectively across the complex marketing mix
• You are finding it hard to manage dynamic customer databases- from data privacy and unsubscribes to moving conversions from the prospect to the customer workflow in real time
Omer Artun, CEO and Founder of AgilOne adds: you are probably ready for a Customer Data Platform (CDP) if:
• You have a significant number of customers who frequently interact with your brand across channels (the greater the number of customers, interactions, and transaction, the more value a CDP will provide)
• Your company gets a lot of value from 1:1 interactions (e.g., increased LTV, response rate, ROAS, etc.)
• There are multiple customer profiles across multiple systems, but you could benefit from a master customer record
• You need a single customer view in real-time, so all operational systems can have access to real-time customer data across different interaction points, devices, and applications

What are the most important questions a marketing leader should ask in order to ‘self-assess’ their CDP readiness?

Inputs from Omer Artun, CEO and Founder of AgilOne
Marketing leaders should ask questions to assess where they are in terms of data and organizational readiness, and how their business is prioritized.
• Do you have a well- established method for capturing customer data (including customer profile data, transaction data and interaction data) from both an operational and legal perspective?
• Do you have the right staff, who can understand how to leverage a customer data platform (CDP) for segmentation, analytics, advertising, and customer experience use cases?
• Do you have the clarity, execution and metrics in place?

WHAT BASICS NEED TO BE IN PLACE BEFORE INVESTING IN A CDP?

We identified the symptoms, diagnosed the problem and prescribed a good strong CDP as the possible cure. But - have you checked for allergic reactions?

It appears that true, data-driven personalization across all touchpoints and throughout the customer's journey would be difficult- if not impossible - without a CDP. So, if that is your goal, and you have clarity on exactly where you are stuck with using your customer data more effectively, you should be ready for a serious investment decision. But it's not all about what you don’t have. You also need to think about what you do have in place today for a customer data platform (CDP) to deliver tomorrow.

Consider these:
1. A plan
2. Data
3. Data skills
4. Management and user buy-in
5. Marketing Automation
6. Integration capability
7. Compliance

NEXT ISSUE:
APRIL: MAKING THE BUSINESS CASE INTERNALLY
- What are the business impact areas of having a CDP- what will get better and how?
- Where will we see the results first? Break down the areas of productivity that CDP can deliver
- Why should management/ leadership care about customer data platform (CDP)?
- How much will it cost in the short, medium and long run?

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This release was published on openPR.