This document discusses customer data platforms (CDPs), beginning with defining a CDP and describing its core components and functions. It then addresses various myths and realities about CDPs, noting that while they provide benefits like unified customer profiles and quick deployment, their value depends on use cases, data availability, and organizational support. Finally, it provides guidance on when and how to use a CDP effectively within a company's marketing technology stack.

1. Getting Past the Hype about
Customer Data Platforms
David M. Raab
CDP Institute
November 13, 2018

2. The Story Arc
Exposition Rising Action Climax Falling Action Resolution

3. The CDP Story Arc
Exposition Rising Action Climax Falling Action Resolution
Customers demand
unified experience
Marketers need
unified data
Existing tech
falls short
CDP solves the
problem!
Marketers live
happily ever after

4. The CDP Story
Architecture Options
Silos Hub, Tag
Manager
CDP
DW, Lake
MAP, CRM Cloud, JOE
Delivery
Decisions
Data

5. The CDP Story
CDP Definition
• Packaged software
• Unified, persistent customer database
• Accessible to other systems

6. The CDP Story
CDP Definition
• Packaged software = prebuilt components and flows,
faster, lower cost, less risk, more mature, updated
• Unified, persistent customer database = all sources, full
detail, 1st and 3rd party, ID and anonymous, customer view
• Accessible to other systems = easy to share data, change
systems without disruption

7. The CDP Story
Data Decisions Deliver
y
DMP
Web
CMS
Mobile
Email
External
Mobile
Web
CRM ExposeIngest Process
Standardize
and transform
Link identities
Aggregate
and index
Reformat
and
expose
Load data
Analytics Engagement
Segment
Predict
Personalize
Orchestrate
Budget Content
CDP Components

8. The CDP Story
Adjacent Systems
CDP
Data
Lake/ WH
DMP
Data Hub,
Tag Mgr
MAP,
CRM
Marketing
Cloud, JOE
packaged
system      
unified customer
data      
persistent      
open access      

9. The CDP Story
Fairy Tales Are For Children
R.I.
P.
R.I.P.

10. The CDP Reality
Myth: Purpose of CDP is to coordinate
customer experience across all channels.
Reality: Most common CDP application is
analytics. Single-channel personalization
comes next.

11. The CDP Reality
Myth: CDP value depends on connecting all
systems.
Reality: Many use cases work with a few
systems or even just one.

12. The CDP Reality
Myth: CDPs are for marketing only.
Reality: All customer-facing departments can
benefit.

13. The CDP Reality
Myth: CDPs manage only first party,
identified data.
Reality: Many CDPs use third party data and
anonymous data.

14. The CDP Reality
Myth: CDPs is a new technology.
Reality: CDP is (mostly) a packaging of
existing technology.

15. The CDP Reality
Myth: CDPs are not needed if you have a
Data Warehouse.
Reality: CDPs include unstructured data not
usually found in a Data Warehouse.

16. The CDP Reality
Myth: CDPs are not needed if you have a
Data Lake.
Reality: CDPs provide more data preparation
than a typical Data Lake.

17. The CDP Reality
Myth: Stand-alone CDPs are the only way to
create unified customer data.
Reality: Other solutions exist. CDP is a
function as well as a type of system.

18. The CDP Reality
Myth: CDPs are all the same.
Reality: CDPs vary widely in scope and
vertical specialty. Some differentiators: real
time; offline channels; on premises; 3rd party
data; analytics & engagement.

19. The CDP Reality
Myth: CDPs have no shared features.
Reality: All CDPs meet the definition:
• ingest and retain full detail
• create unified customer profiles
• expose the results

20. The CDP Reality
Myth: The CDP market is chaotic.
Reality: CDP market is
forming segments by
size, scope & industry.

21. The CDP Reality
Myth: Identity resolution is a core CDP
capability.
Reality: Some CDPs offer integrated ID
resolution. Some expect IDs to be provided
on inputs. Some rely on third party systems.

22. The CDP Reality
Myth: CDPs replace
application data stores.
Reality: CDPs synch
with application data
stores.

23. The CDP Reality
Myth: CDPs don’t need IT support.
Reality: IT is still involved, and should be.
Vendors often do some tech work.

24. The CDP Reality
Myth: CDP is a silver bullet that solves all
customer data problems.
Reality: Organization, budget, skills, time,
and existing systems can all be major
obstacles.

25. What We’ve Learned

26. What We’ve Learned
CDP Strengths
• Quick deployment, prebuilt features, easy
data access
CDP Weaknesses
• Confusing differences among vendors,
spotty functionality across systems

27. What We’ve Learned
When to Use CDP
• Need to assemble data across systems
• Need to access isolated systems
• Need to store un/semi structured data
• Need to improve user productivity
• Need to limit demands on IT

28. What We’ve Learned
How CDP relates to the Martech stack
• Database is distinct component
Synchronize, not replace, application data
• Decision features overlap
• Delivery is external
Sources CDP DeliveryDecision
s

29. What We’ve Learned
Finding the Right CDP
• Clear use cases to drive selection
• Careful analysis of vendors
• Take advantage of references
• Proof of Concept to test claims
• Set deployment plans from the start

30. What We’ve Learned
Success Requirements
• Pick the right system!
• Quality data available and accessible
• Adequate analysis and delivery systems
• Organization, budget, staff, etc.

31. What We’ve Learned
Summary
• Yes, there’s hype
• But CDP value is no fairy tale
• Be realistic and take advantage

32. Thank you!
draab@cdpinstitute.org
www.cdpinstitute.org