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The Customer Data Platform, the Future of the Marketing Database
The document introduces Customer Data Platforms (CDPs) as essential tools for marketers seeking to unify customer data across channels and improve targeting and personalization. It outlines common data pain points faced by marketers, including data latency and accuracy issues, and distinguishes CDPs from traditional marketing databases. The document emphasizes the advantages of leveraging a CDP for enhanced customer engagement and revenue growth.
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The Customer Data Platform, the Future of the Marketing Database
- 1. Spend Less, AchieveMore An Introduction to the Customer Data Platform, The Future of the ‘Marketing Database’
- 2. Agenda The data painmarketers face What is a Customer Data Platform? And what it is not! The features, advantages and benefits of the CDP Spend less, achieve more 2
- 3. The Data Pain- What do we hear?
- 4. Brands Still Struggle to Utilisethe Power of Data 4 0% 5% 10% 15% 20% 25% 30% 35% We use our internal marketing data to target prospects and customers on third-party websites or applications We use data about our current customers to target similar audiences on third-party websites or applications We have an approach to marketing attribution that goes beyond ‘first touch’ or ‘last touch’ We have created an actionable ‘single customer view’ that combines data sources about each individual We have technology and processes designed to predict the needs and behaviours of customers and prospects Which of the following apply to your organisation? Source: Econsultancy/Adobe Quarterly Digital Intelligence Briefing Repsondents: 1,452
- 5. Customer Recognition is a KeyIssue 5 Econsultancy/Epsilon: Customer Recognition: How Marketing is Failing at its Top Priority, October 2016 0% 20% 40% 60% 80% 100% 74% 75% 76% 84% 14% 12% 13% 10% Matching customers across multiple devices Understanding customer behaviour over-time Tailoring messaging by channel Associating conversion events with marketing “Very important to growth” Strong Capability
- 6. “How can Ido ‘multi-channel’ if I can’t stitch together and properly recognise an individual and their actions across different devices and channels?” “IT are the busiest people in the business and so asking for, and then getting data to run tactical, one-off campaigns can sometimes be almost impossible. We both get annoyed but for different reasons!” “There is chronic data latency in our business. For instance, we only get email data loaded into our ESP once a week.” “What value is being delivered by my Marketing Database?” 6 “We’ve only just moved from our ‘SCV’ marketing database being refreshed every fortnight to every week but it’s still no where near as fast as it needs to be. How can we hope to talk to people in ‘real-time’ when our view is a minimum of a week old.” “We can’t even identify our VIPs when they come back to the website which means everyone gets the same offer.” “Our data is nowhere near accurate enough to do personalisation and is all over the place. It’s like Swiss Cheese, holes and inconsistencies everywhere.”
- 7. 7 Lack an actionable SCV Concerned about data accuracy Believe targetingcan be improved Desire ‘access’ to data Suffering data latency issues Need for business wide data application Fear results are sub par due to data issues
- 8. 8 What is aCustomer Data Platform? “A Customer Data Platform provides marketers with an integrated customer database that can support coordinated programs across multiple channels”. Raab Associates “A Customer Data Platform (CDP) is an integrated customer database managed by marketers that unifies a company’s customer data from marketing, sales and service channels to enable customer modelling and drive customer experience” Gartner
- 9. Central tenets of aCustomer Data Platform Creates a ‘persistent, cross-channel customer data record’ Drives campaign management Marketer controlled 9
- 10. 10 A CDP isnot a…. Data Management Platform Universal Data Hub Work with only “first party data” Collect all customer interactions Hold data governed by first party permission…But a CDP does
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- 12. 12 • Single CustomerView • Customer Identification including Cross Device Identification • Segmentation for Multi-Channel Deployment • Reporting and Analytics • Predictive Modelling • Deployment CDP Key Components
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- 14. 14 Under-performing Moderate performing 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4% 21% Highperforming 60% High performing vs. Under performing Teams 13.7xmore likely to strongly agree they’ve integrated business systems to create a Single Customer View Top Marketing Teams Create a Single View of the Customer Percentagewhoexcelatintegratingbusinesssystems
- 15. Components of an SCV 15 Whatare the components of your organisation (or your clients’) Single Customer View? Merged database records from marketing, CRM, billing and/or other systems Interactions with external touchpoints such as marketing campaign data Interactions with internal touchpoints such as website behaviour Historical purchases and behaviours Integrated enhancement data, such as geography Real-time behaviours on our/their properties such as pages viewed on site Offline data from stores, POS, loyalty, etc. 0% 10% 20% 30% 40% 50% 60% 70% 80% None of the above 68% 67% 64% 66% 60% 66% 60% 64% 51% 64% 44% 45% 30% 46% 3% 2% Source: Econsultancy Company Repsondents Agency Repsondents
- 16. Customer Identification andCross Device Identification
- 17. Search Marketing Web Customer Services Stores Social Affiliates Mobile Email Direct Mail Microsites Amazon/Google Cookie -Mobile Cookie - Tablet Telesales / Marketing Digital Banners & Signage Loyalty Card POS Displays Facebook Group Instagram LinkedIn Group Pinterest Account Twitter Account YouTube Channel Pay-per-clickReferral iBeacons In-store wi-fi access Mobile App SMS Tablet App Wearable Technology Website via tablet / mobile Behavioural Emails Marketing Email Transactional Email Catalogue Postal address Customer ID Previously solutions were built on 6-8 identifiers… such as first name & house number Number of customer touchpoints increase by 20% annually Source: Mckinsey & Company The CDP connects up to 24 identifiers 17 Household address
- 18. 18 ? . The Mechanism toCross Device Identification 18
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- 20. A single segmentationtool to access a single marketing dataset Targeting campaigns more accurately with greater relevance Segmentation at a more granular level Benefits of CDP Integrated Segmentation Delivering multi-channel customer marketing automation 20
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- 22. Reporting How does online engagement influencein-store activity? How is mobile influencing the likelihood of conversions? What is the value of my catalogue to my business? How does VIP’s compare to multi purchases overtime? What attributes are impacting customer retention? What is the potential LTV of in- store customers? 22
- 23. Predictive and MachineLearning
- 24. + = Predict your customer’snext move “Predictive Marketers are 1.8 times more likely to constantly exceed organisational goals and 2.9 times more likely to report revenue growth at rates higher than industry average.” (Forbes, 2016) 24
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- 26. Predictive engagement modelling 40% Fewer emails sent Revenue increasedby 25% Retaining new and disengaged customers to secure their LTV While increasing top-line revenue 26
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- 29. …so digital marketers biggestheadache is moving data between systems – which highlights the importance of RedEye’s API 29 1 2 3 4 5 Moving data between systems Gaining a Single Customer View Turning data into insights Marketing attribution (understanding contribution of different activities) Contextualisation Turning insights into actionable segments Marketing Automation Ensuring data privacy / compliance with opt-outs Segmentation Personalisation On a scale of 1 -5 where 1 is a minor headache and 5 is a serious migraine, how much of a pain are the following data related activities. 33%41%21% 40%29%23% 28% 33% 28% 26% 28% 30% 20% 15% 37% 30% 33% 34% 30% 23% 30% 32%40% 37% 16% 30% 31% 33% 23% 26% 12% 21% 13% 11% 9% 11% Source: Econsultancy
- 30. 30 So what haschanged? In the 80’s and 90’s catalogue and direct mail marketers looked for competitive advantage in data and databases. Now the multi-channel marketer is increasingly focusing on data to give them the competitive advantage of the new millennium.
- 31. Database Approach Comparisons Traditional Marketing DatabaseCustomer Data Platform Direct mail and tactical email Multi-channel marketing automation 7 or 8 identifiers 24 customer identifiers Siloed, costly and redundant Single platform with reduced costs High levels of duplication Highly accurate data No address – no record Any interaction, creates a customer or prospect record Weekly refresh Always on Access via IT/MySQL In the hands of the marketer Manual Automated and integrated Historic view of data and reactive Predictive and future focused 31
- 32. 32 The Marketing Databaseis Dead… Long live the Customer Data Platform
- 33. 33 SCV – highperforming marketing teams 13.7 times more likely to have an integrated SCV Customer Identification & Cross Device Identification – 25-55% increase in revenue Predictive Modelling – 25% increase in income SCV drives better targeting which improves Customer Experience and Conversion A single segmentation tool helps drive greater granularity and again better customer experience A single orchestration platform helps achieve a more omni-channel experience A single orchestration platform helps achieve a more omni-channel experience Summary
- 34. 34 Want to knowmore about the RedEye Customer Data Platform? Get in contact: www.redeye.com 0207 730 9958