Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

CDP - 101 Everything you need to know about Customer Data Platforms

711 views

Published on

There has been a lot of buzz around Customer Data Platforms (CDP) in the past months / years. This presentations gives you a great overview of what a CDP is, the similarities across different systems such as a DMP or CRM. As well as valuable questions that help you determine if your organization needs a Customer Data Platform.

Published in: Marketing
  • Like Watching Videos? Want to get paid to do it? ➤➤ https://tinyurl.com/rbrfd6j
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

CDP - 101 Everything you need to know about Customer Data Platforms

  1. 1. Everything you need to know about Customer Data Platforms CDP101 BONUS CDP, DMP & CRM Comparison & Other Resources
  2. 2. 2 First things first, let's talk about data! DATA 101
  3. 3. TYPES OF DATA 3 2nd PARTY DATA Data owned by a partner but shared with your organization. 1ST PARTY DATA Data collected and owned by your organization. PII: Personal Identifiable Information such as name, address, email etc. 3rd PARTY DATA Data generated and owned by other parties/vendors. Anonymous: No personal information. Only cookie or device ID.
  4. 4. DATA EXAMPLES 4 1st 2nd 3rd Web Offline CRM Sales Other Demo Other Ent. In-Market Travel 1st A 1st B DATA GENERATED & OWNED BY ORGANIZATION DATA SETS TRADED BETWEEN PARTNERS DATA GENERATED & OWNED BY OTHER PARTIES/VENDORS
  5. 5. DATA EXAMPLES 1st Web Offline CRM Sales Other DATA GENERATED & OWNED BY ORGANIZATION A CDP mainly operates on Personal Identifiable Data (PII) which is 1st party data.
  6. 6. 6 Now, let’s learn about the Customer Data Platform CDP. CDP 101
  7. 7. WHAT IS A CUSTOMER DATA PLATFORM? “A customer data platform is a marketer-managed system that creates a persistent, unified customer database that is accessible to other systems” 7 David Raab, Founder of the Customer Data Platform (CDP) Institute
  8. 8. WHAT IS A CUSTOMER DATA PLATFORM? “A customer data platform is a marketer-managed system that creates a persistent, unified customer database that is accessible to other systems” 8 Unlike other systems, CDPs are usually managed by marketers which means the business users are in control.
  9. 9. WHAT IS A CUSTOMER DATA PLATFORM? “A customer data platform is a marketer-managed system that creates a persistent, unified customer database that is accessible to other systems” 9 A CDP creates an actual database of its own, rather than accessing information that is stored in other systems or acting as a hub that transfers data from one system to another.
  10. 10. WHAT IS A CUSTOMER DATA PLATFORM? “A customer data platform is a marketer-managed system that creates a persistent, unified customer database that is accessible to other systems” 10 CDP connects all data related to the same customer to present a Single Customer View
  11. 11. WHAT IS A CUSTOMER DATA PLATFORM? “A customer data platform is a marketer-managed system that creates a persistent, unified customer database that is accessible to other systems” 11 A CDP data base is organized around people rather than objects like web pages or products. Users are stored on an individual level with personal identifiable information (PII) like name, phone number account number etc.
  12. 12. WHAT IS A CUSTOMER DATA PLATFORM? “A customer data platform is a marketer-managed system that creates a persistent, unified customer database that is accessible to other systems” 12 A CDP can share its data with other systems via API (Application Program Interface) or database queries.
  13. 13. Combining all the data in one place is key to efficient marketing. While the information is generally available, it is usually scattered across multiple silos—databases, platforms, and systems that store a company’s data but aren’t connected with one another. WHAT PROBLEM IS A CUSTOMER DATA PLATFORM SOLVING? Data Silos Not Connected Customer level data is generally available, but in many instances scattered across multiple data silos. Combining all the data in one place is key to efficient, consistent and more personal marketing CRM A/B Testing Analytics Social Media Content Personalization
  14. 14. WHY IS IT IMPORTANT TO GATHER SO MUCH INFORMATION? CRM A/B Testing Analytics Social Media Content Personalization Storage Customer records are stored on a user level (PII). Unification Customer interaction across platforms e.g. Web, App or CRM system can be synced and unified. Enrichment Customer records can be enriched via 3rd party data providers for a richer profile of an individual. STORE / UNIFY / ENRICH
  15. 15. 15 Now, let’s learn about the differences across multiple systems. CDP vs. DMP vs. CRM
  16. 16. DMP, CDP & CRM COMPARISON Data Management Platforms (DMP) The primary use is to aggregate and organize 1st 2nd and 3rd party data, which typically involves the use of cookies, device ID’s or User IDs in an anonymized environment (non PII). Customer Data Platforms (CDP) The primary use is first-party data, based on real customer identities such as PII. Information in a CDP can be enriched with third- party data. However, in many instances it is used by marketers to nurture the existing customer base. Customer Relationship Management (CRM) CRM is similar to a CDP but is not able to handle multiple data types. It requires manual maintenance and is not easily scalable for many CDP use cases such as content personalization.
  17. 17. DMP, CDP & CRM COMPARISON Data Management Platforms (DMP) • Focus on communicating to unknown audience • They typically leverage third-party data, with first- party data acting as an additional source of information. • Designed to improve display ad targeting. Customer Data Platforms (CDP) • Focus on on communicating to known audience • Primarily use PII and first- party data. • Leveraged to keep user data in one place, while also accessing information for personalized marketing (e.g. web, ads, email, mobile). Customer Relationship Management (CRM) • CRMs are much like CDPs, but do not handle multiple data types. • Use PII and first-party data. • Usually require salespeople to manage its accounts.
  18. 18. 18 DMP CDP CRM Anonymized IDs 3rd Party Data Taxonomies Agency Users Temp. Storage ID linkage Cross-Channel Multiple Data Types APIs (in/out) Integration Unique IDs Flexible Structure Marketer Users Known PII Customer Data Sales Team Persistent Storage Single Data Type DMP, CDP & CRM COMPARISON
  19. 19. What type of data is housed in each of the systems? The type of data that is captured and housed in a Data Management Platform (DMP), a Customer Data Platform (CDP) and a Customer Relationship Management System vary drastically. This is a simplified view of the type of data each system captures. DMP View CDP View A LOOK AT THE DATA CRM View Alex Smith Age: 48 Marital Status: Divorced 2 years ago, 2 children age 10 & 17 Location: ABC Street, Los Angeles, CA, USA Opened email: 3/12/2019 Visited Website: 02/28/2019 Browser: Firefox Referred From: Brand Instagram Profile Occupation: Running a small business in child nutrition Postal Code: XXXXXX Email: AlexsmithXYZ@gmail.com Phone Number: 323.209.1290 Interest in: Child nutrition products, pop and rock music, street fashion, photography, local music and art. Alex Smith Opened email: 3/12/2019 Browser: Firefox Email: AlexsmithXYZ@gmail.com Phone Number: 323.209.1290 Anonymous User Age: 30-35, 45-45 Marital Status: Divorced, 1-3 Kids Location: Los Angeles, CA, USA Opened email: Yes, in the past 30 Days Visited Website: Yes, in the past 30 Days Interest in: Child nutrition products, pop and rock music.
  20. 20. 20 Now, let’s talk use-cases. CDP IN ACTION
  21. 21. Despite the many capabilities and functions of a Customer Data Platform, the premise on which they work is fairly simple. They function by pulling data from multiple sources, cleaning it, and re-structuring it in a way that makes it available to other marketing systems for personalized marketing activities. Depending upon the capabilities of a specific platform, they may also have additional functions such as advanced data analytics, content marketing, predictive capabilities, etc. CDP DATA FLOW Image source: Elementsolutions.com
  22. 22. USE-CASES 1 Outbound Marketing Campaign Support 2 Advanced Customer Data Management 3 Predictive Analytics 4 B2B Support 5 Ecommerce Recom. + Optimization 6 Omnichannel & Offline Aggregation 7 Realtime Behavioral Analysis 8 Online Personalization / Experience Optimization 9 Digital Advertising Support
  23. 23. 23 Let’s talk business ROI ON CDPs
  24. 24. In order to calculate the RoI of a Customer Data Platform, businesses need to look at various costs & benefits that a CDP can bring to the table. First, understanding the value of your audience profile is important. This data enable businesses make better decisions leveraging data. CDP allows you to create better initiatives, such as advanced segmentation, better media buying choices, personalization that better meets customer needs, enabling automation, and many others. It is important to realize cost savings attributable to these functions. CUSTOMER DATA PLATFORM ROI MODEL 24 • Market value for your audience • Data required for AI & transformation initiatives • Potential data products Data Asset Value • Incremental new business • Improved retention • Upsell / Cross-sell Performance Lift • Automated sales / marketing • GDPR / CCPA compliance • Media savings: Targeting & Data Operational Savings • Customer Data Platform • Professional services & team training • Maintenance cost & data enhancement Direct & Related Costs Return on Investment + + - =
  25. 25. 25 Sooo… Does your organization need a CDP? ASK THE RIGHT QUESTIONS
  26. 26. QUESTIONS TO ASK YOURSELF 1 2 What use cases are you trying to enable that your current martech stack can’t? 3 What is the volume of data you will be managing? Do you have the organizational structure, culture and talent to execute on the CDP? 4 How would this new technology fit into your current MarTech stack? Do you have the right leadership and organizational buy-in so that the data and analytics derived from a CDP are going to drive decision-making?5
  27. 27. 27 I would like to learn more… RESOURCES
  28. 28. CDP EVALUATION & REPORTS CDP VENDOR COMPARISON CDP Institute (not affiliated) Download here CUSTOMER DATA PLATFORMS OVERPROMISE AND UNDERDELIVER FORRESTER View here. CDP Evaluation Resources – CDP Institute: Customer Data Platform systems vary greatly in the features they provide. This document helps buyers to identify systems whose features match their needs. It does this by showing which vendors provide features that support specific use cases. We assume buyers have identified their use cases in advance. This report does not rank systems. More features isn’t better. Unnecessary features add cost and complexity without creating value. If you use this report to rank systems, assign one point for each Yes on a feature you need and subtract one point for each Yes on features you don’t need. The definitions of each item are presented in the section following the table. “Yes” answers mean only that the system meets the minimum requirement in that definition. This may not be adequate for a particular buyer’s needs. Buyers will need to explore the details of individual systems to find out. The table is divided into two major sections. Shared CDP Features lists features present in all CDP systems. This section is included to provide a context and to help distinguish CDPs from other types of systems that buyers may be considering. Distinguishing Features lists features present in some CDPs that support specific use cases. This group is divided into Data Management, Analytics, and Engagement features. The expectation is the readers of this document will understand which of these features relate to their needs.
  29. 29. OTHER RESOURCES 29 DMP Dictionary 35+ Terms Every Marketer Should Know DMP - Audience Segmentation Strategy & Audience Testing The DMP 101 - Data Management Platforms Explained
  30. 30. THANK YOU 30 @eddywiEddy Widerker

×