1. I Got 99 Problems
but My CDP Ain't One.
2019 Masterclass

2. Customer Data &
Engagement Platform
● Founders: Manuel Hinz and Dr. Markus Wübben
● One of the first European suppliers
● Gartner: “Cool Vendor in Multichannel Marketing”

3. Please check out the video and carefully
observe the cases.

4. Simple cases!
Simple cases?

5. Let's model these cases...

6. A last-minute gift
Data & Processing Requirements
Lea

7. 1.
The user searches
for a product

8. 2. Record the SKU

9. 3.
Get permission
to retrieve the
location data

10. 4.
Retrieve the
location data

11. 5.
Decode the
geo-location

12. 6.
Locate nearby
shops

13. 7.
Check if the SKU
is available

14. 8.
Retrieve a list of
shop IDs that have
the SKU in stock

15. 9.
Retrieve
those shops’
geo-locations

16. 10.
Place the
shop locations
on the map

17. 11.
Match the user’s cookie with
CRM data to retrieve the PII

18. 12.
Trigger a
personalized
message
Hi Lea,
11 nearby shops stock this item! 🎁
🎁
Here are their locations:

19. Required data
● Geo-data
● PII (Customer Record)
● Cookie & PII matching
● Shop location
● Shop inventory

20. Need a ride?
Data & Processing Requirements
Jeffrey

21. 1. Set up a geo-fence for the city (including dwell time)
BERLIN

22. 2. Set up a geo-fence for the Station
BERLIN
Central Station

23. BERLIN
Central Station
3. The user enters
the city geo-fence
14:20
Entered Geo-Fence

24. BERLIN
4. Check if
a) The dwell time has been exceeded
b) The user has re-entered the station
Central Station
14:20
Entered Geo-Fence
14:50
Entered the Station

25. BERLIN
5. Check if
a) The user is a car-sharing customer
b) Push notifications are enabled
c) A car is available
User

26. BERLIN
6. Retrieve the Pll for personalization
User
Data

27. BERLIN
7. Check the user’s contact history
User

28. BERLIN
8. Trigger a personalized message
User

29. BERLIN
9. Update their user profile with:
a) The contact history
b) Their reaction
User

30. Required data
● Geo-data
● PII (Customer Record)
● Contact permissions
● Car-sharing provider's car
inventory data
● Campaign and template data
● Contact history

31. If you want to create highly engaging
campaigns you have 99 problems
Real-time /
near real-time
Relationships
between
data entities
Triggers Changing
data points
!

32. What are marketers' tech
options for solving these
“99 problems”?

33. Overview of
Marketing Tech Stacks in 2019
(Presumed) Degree of Integration
Limited
Piecemeal
Fragmented
Best-of-Breed
Integrated
Best-of-Breed
Single Vendor
Marketing Suite
Proprietary
MarTech Stack
9%
(2017: 21%)
8%
(2017: 21%)
34%
(2017: 27%)
27%
(2017: 21%)
5%
(2017: 4%)
51% WITH MULTI-VENDOR APPROACH
Source: Walker Sands State of Marketing Technology 2019 (missing 17% = “non-existent”)
low high
Option 1Option 2Option 3

34. DEFINITION
“A marketing technology stack
consisting of solutions for every task
that has been developed, internally or
through an agency, to be fully tailored
for a particular company’s needs.”
• Solutions can be fully tailored
for the company
• Full control
• Very resource-intensive:
A multi-million euro budget
and a qualified in-house
team is necessary
• Time consuming!
Option 1:
“Proprietary
MarTech Stack”
“Proprietary”
PROS
CONS

35. • Campaign management (basic)
• Advanced analysis functionality
• Digital marketing capabilities incl. Ad
Mgt., Content Mgt., Mobile & Social Media
Mkt., Display & Email-Mkt.
Examples
SOURCE: Gartner Magic Quadrant for Multichannel Campaign Management, 14 April 2016
DEFINITION
Integrated solutions “that seek to
orchestrate company communications and
marketing offers with customer segments
across channels such as websites, mobile,
social, direct mail, call centers and email.”
Option 2:
“Single Vendor
Marketing Suite”

36. A fully integrated platform!
A fully integrated
platform is as
mythical as a
Himalayan Yeti.
RSG MARKETPLACE ANALYSIS 2015
CC BY 2.0 Robert Couse-Baker - Yetti on a bench

37. Integrated?
Enterprise Marketing Management Solutions The Oracle Customer Experience Cloud

38. SOURCE: Gartner Magic Quadrant for Multichannel Campaign Management, 14 April 2016
Option 2:
“Single Vendor
Marketing Suite”
• The team only needs to work with one tool
to create, execute and analyze campaigns
• Single point-of-contact for support services
• Marketing trends are slowly adapted
• A single vendor is unable to provide the
best tool for every task (no best-of-breed
tools)
• Difficult implementation (old tool
migration etc!)
• Provider “lock-in”
• Costly consulting + support structure
“Single Vendor Marketing Suite”
PROS
CONS

39. SOURCE: Gartner Magic Quadrant for Multichannel Campaign Management, 14 April 2016
Option 3:
“Integrated
Best-of-Breed”
• No provider “lock-in” – free choice of tools
• Best-of-Breed tools can be used →
competitive advantage
• Offers the possibility of quick adaptation
(Martec’s Law)
• Very cost-efficient
• No Single-Point-of-Contact →
increased effort for communication
• Many tools need to be connected →
complexity
“Integrated Best-of-Breed”
PROS
CONS

40. Hype Cycle
Gartner Hype Cycle for Digital Marketing and Advertising, 2018
Expectations
Time
Peak
of
inflated
Expect-
ations
Innovation
Trigger
Thought of
Disillusionment
Slope of
Enlightenment
Plateau of
Productivity
Customer Data
Platforms
Data Management
Platforms

41. But what exactly is a CDP?

42. Standardized software (mostly a
SaaS solution)
→ Faster, less risk, lower costs
Compiles user data from all
available sources and stores
forever (legal boundaries need
to be respected)
→ A complete customer view
A CDP’s Properties
Packaged
Software
Persistent
& Unified
Shares data with other systems
→ An open system that enables
best-of-breed approaches
Accessible

43. DataIntegration
Real-Time (Drip)
Campaign
Management
Customer
$
360°
Customer
Profiles
Real-Time 1:1
& Audience
Segmentation
User
Behaviour
Engagement
Product
Transaction
Devices
E-mail
Push
Messages
Social Media
Direct Mail
Website
ChannelIntegration
Data Channels
Customer Data & Engagement Platform

44. CDP Use Cases

45. Audience Campaign: Travel
Turnover
Subscription Bookings
Customers with >1,000€
turnover/year
Customers with
>50 trips/year
Customers
with bonus
cards
Holiday offer
for premium
customers
Premium
customers

46. Real-Time Campaign: Travel
1st class
upgrades on
crowded
trains
Trigger Condition Message
Crowded train;
travel distance
>500km
Premium customer;
app user
Free 1st class
upgrade

47. A combination of audience
and real-time campaigns
Multi-Stage Multi-Channel Campaigns
Condition
Mobile Push
Upgrade
for current
journey
Postal
Trigger
Heavy workload;
Travel distance:
>500km
Premium client
(App user)
Voucher
for next
journey(Non-App user)

48. Stories

49. How is a CDP different to a DMP?
CDP vs. DMP

50. Layers of Differentiation
DATA DECISION DELIVERY

51. DMP vs. CDP | DATA
● Utilizes all types of user/customer data
● Both anonymous and identified user
profiles
● Privacy: Mostly hard opt-in
● Focuses on web behavior data
● Mostly cookie-based = anonymous user
profiles
● Privacy: Either a soft opt-in or none at all
DMP CDP

52. DMP vs. CDP | Decision
● Segments are created based on user
attributes and all behavioral data
● Behavioral data segmentation is based
on raw data
● Additional real-time segmentation on
(multi-level) event data
● Segments are created based on
anonymous user attributes and web
behavior
● Web behavior, often in the form of
aggregated data, is also as a user
attribute
DMP CDP

53. DMP vs. CDP | Delivery
● Segment transmission as well as
trigger-based 1:1 communication
(multi-level and with multiple channel
combinations)
● Wide coverage of channels with 1:1
capability (email, messenger, onsite,
print, etc.)
● Regular segment transfer
● Strong focus on the Programmatic
Display ecosystem (DSPs, etc.)
DMP CDP

54. ● DMPs and CDPs have
different application areas
● They’re frequently used in
separation from each other
● But one can benefit from
the other
→ Linking CDPs & DMPs

55. Combining CDP & DMP functionality
yields nice use cases

56. Case:
Addressing users who have attended a OMR event in the past via
programmatic display to promote the new OMR podcast.
Use Case 1:
(Re)Targeting Existing Customers
Cookie-Matching
Audience: visitor
DMPCDP
PODCASTPODCAST
Audience: visitor

57. Cookie-Matching
Case:
Excluding customers from prospecting campaigns by transferring
customer segments from the CDP to the DMP.
Use Case 2:
Customer Exclusion Whilst Prospecting
Audience: Customers
PODCASTPODCAST
DMPCDP
Audience: Customers

58. Cookie-Matching
Case:
Transferring (selected) customer segments to generate look-alike audiences in
the DMP for new customer acquisition via programmatic display.
Use Case 3:
Look-Alikes in Customer Segments
Audience:
Premium customers
Look-Alike audience
PODCASTPODCAST
DMPCDP
Audience:
Premium customers

59. Use Case 4:
Cross-Channel-Campaigns
Data
Decision
Delivery
360°
customer profiles
Smart segmentation
& automated user journeys
Real-time
cross-channel
campaigns
DMP

60. Create
Your
Own
Story
Use Case 4: Cross-Channel-Campaigns
Condition
Print
Reaction
Display
Trigger
Customer
becomes inactive
>1,000€ turnover
or
user has made
>20 purchases in
the past
User reacts to the
campaign

61. CDP ≠ CDP

62. CDP Institute: The RealCDP Project
● Ingest data from any source.
● Capture ingested data in full detail.
● Store ingested data indefinitely.
● Create unified profiles of identified individuals.
● Share data with any system that needs it.

63. Data CDPs vs Engagement CDPs
Focus on data
● Pre-packaged standardized connectors to
many data sourcing systems (Salesforce,
Google, AdTech, Shop-Systems, etc.)
● Focus on data aggregation, cleansing,
“golden customer record”
● Usually transfer segments only to 3rd party
systems
● Pre-packaged standard connectors to delivery
systems (ESPs, Push Providers, Call-Center
Software, etc.)
● Focus on data activation into delivery systems
(campaigns, real-time data transfer) and other
systems (voucher system etc.)
● Sophisticated campaign management:
1:1 real-time and audience campaigns
● Some: Product/content recommendation
features
Focus on engagement

64. The 100th Problem:
Merging Retention & Acquisition

65. CRM
MY PERSONAL HEROES OF

66. HBR:
“Zero defections, quality
comes to service”
(1990)
Journal of Marketing Research:
“Valuing Customers”
(2004)
Frederick F. Reichheld
W. Earl Sasser
Donald R. Lehmann
Sunil Gupta

67. Probability of
making a sale
is higher for
existing customers
These heroes gave empirical evidence that retention
is a good thing
Increasing retention
highly increases
profitability
Keeping a customer
costs 5 times less
than acquiring a
customer
Existing customers
are more likely to
try new products
and spend more
money
5%
Customer retention
25-95%
Profit
60-70%
Existing customers
5-20%
New customers
50%
Try a new product
31%
Spend more money

68. So What Drives
Customer Retention?

69. Switching Costs
are the most practically relevant driver for retention
● Economic risk costs
● Evaluation costs
● Setup costs
● Search costs
● Learning costs
● Benefit loss costs
● Monetary loss costs
Procedural
switching costs
● Personal relationship
loss costs
● Brand relationship
loss costs
Financial
switching costs
Relational
switching costs

70. When switching costs decrease,
retention becomes
re-acquisition
Retention = (Re-)AcquisitionRetention ≠ (Re-)Acquisition
Switching Cost

71. The influence of the platform economy on
switching costs

72. Platforms have eliminated procedural
switching costs to a large extent
● Economic risk costs
● Evaluation costs
● Setup costs
● Search costs
● Learning costs
● Benefit loss costs
● Monetary loss costs
Procedural
switching costs
● Personal relationship loss costs
● Brand relationship loss costs
Financial
switching costs
Relational
switching costs
Eliminated for all
by platforms
(Google, PC, Amazon etc.)
Mainly applicable in
subscription businesses &
business with rewards
(e.g. loyalty programs)
For the
“rest of us”

73. Reduced switching costs lead to a new
consumer decision process
Consideration Set & Evaluation
Initial
Consideration
Set
Moment
of Purchase
Trigger
(Post) Purchase

74. The less a business is
able to create switching costs,
the more retention becomes
re-acquisition.

75. Take a look at the
challenges & opportunities
of customer acquisition
and at how CRM can facilitate
re-acquisition.

76. Programmatic Advertising:
A Paradigm Shift?
The
Environment
Buyer’s
Black Box
Buyers
Responses
• Buying attitudes & preferences
• Purchase behavior
• Brand & company relationship
behavior
Source: Kotler 2016: Principles of Marketing
Marketing stimuli
• Place
• Promotion
• Product
• Price
• Buyer’s characteristics
• Buyer’s decision process

77. How Do We Target the Black Box?

78. A Semantic Approach to Acquisition

79. Upper funnel data serves as
a proxy for consumer intent.
Lower funnel (CRM) data
puts intent into context.

80. Latest Trends: AMP for Email
● Yahoo Mail, Mail.ru, Outlook, Gmail will support this
● Based on AMP project (accelerated mobile pages)

81. It's a Match!
Customer
Acquisition
Customer
Retention

82. Key Takeaways
Simple use cases are
not as simple as you
expect them to be.
1. CDPs enable
advanced customer
engagement.
2. Merge acquisition
and retention.
3.

83. I Got 99 Problems
but My CDP Ain't One.
2019 Masterclass
@crossengage @markuswuebben
crossengage.io