THE CDP EXPLAINER - MarTech Advisor · DATA THE CDP EXPLAINER A 12-part monthly series by MarTech...
Transcript of THE CDP EXPLAINER - MarTech Advisor · DATA THE CDP EXPLAINER A 12-part monthly series by MarTech...
DATA
THE EXPLAINER CDPA 12-part monthly series by MarTech Advisor in associa�on with the CDP Ins�tute
Unpeeling what CDP means to you, one ques�on at a �me
WHAT IS CDP AND WHERE DOES IT FIT INTO MY DATA ECOSYSTEM?
Before we get into what a CDP is, lets set some context here. As a marketer, customer data is the fuel you need to keep the marke�ng machinery moving. Without data, your marke�ng efforts are guesswork at best. As marketers in the digital age are moving towards becoming data-driven marketers, your marke�ng programs too are increasingly data-driven. But you know all of this. So then, the ques�on is ‘what kind of data management core is the right engine to help achieve my marke�ng goals’?
Now, assuming a unified, or single customer view of known customers is important for you to meet your marke�ng goals more effec�vely, then the ques�on above may sound more like: ‘how do I store and organize the data I collect from my many customer touchpoints, in a way that it makes a unified view of the customer available for increasingly intelligent marke�ng ac�vi�es’?
CDP is one possible answer to that ques�on.
Your customer has many faces, but she expects a seamless experience with her favourite brands. Can a CDP help you get a unified view of all her interac�ons, responses and transac�ons across all mediums, channels and touch points?
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Issue 1/12
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Marke�ng stack – components of which may or may not be integrated with each other
Customer touchpoints and interac�ons that are the outcome of the marke�ng ac�vity and which
provide back the input data for the central data system
The Heart of the marke�ng system is the Data. The ques�on is, A CDP, what kind of heart do you need?
warehouse, CRM or DMP – what will best help achieve your customer marke�ng goals?
WHAT IS A CDP? There are many ‘variants’ of CDP today, but at its core, a CDP will have the ability to gather and store PII from mul�ple internal and external sources into one place and allow you - the marketer - to leverage that for mul�ple customer -related purposes.
It has variously been called ‘the central nervous system’ ‘unified central of marke�ng and the customer view’ that delivers the most current intel about a unique customer from the - structured and unstructured; real �me and historical; anonymous and iden�fiable - data that is collected from mul�ple sources. It uses a single unique iden�fier for each customer and can link everything associated with that record back to it. In other words, a single view of all customer ac�vity, interac�ons and a�ributes.
The input is data gathered from all the touch points,the core will transform (sort, label, unify and store) this data; and will make this data available the outputto marke�ng applica�ons (analy�cs, marke�ng automa�on, social media marke�ng, website) with the ul�mate goal of selling more effec�vely and efficiently.
The idea is that a unified view of the customer will enable the brand to deliver unified brand experiences to those same customers.
David Raab defines CDP as: “a marketer-controlled system that builds a unified, persistent customer database and exposes it to external systems.”
— Customer shows the scope extends to all customer-related func�ons, not just marke�ng
— Data shows the primary focus is on data, not execu�on
— Pla�orm shows it does more than data management while suppor�ng other systems.
Gartner defines it as: “an integrated customer database managed by marketers that unifies a company's customer data from online and offline channels to enable modelling and drive customer experience.”
© 2017 All Rights Reserved. MarTech Advisor.
DOES HAVING A CDP MEAN I WON’T NEED BIG DATA OR CRM OR DMP OR A DATA WAREHOUSE ANY MORE? CAN A CDP DO THE WORK OF THESE OTHER DATA SYSTEMS?
MarTech Advisor Category Expert on CDP, David Raab weighs in: Big data is more a technology than a type of system; most CDPs are built with 'big data' technologies such as Hadoop.
Some data warehouses could do the same things as CDPs, but a data warehouse is a custom-built system that is run by IT, while a CDP is packaged so�ware run by marke�ng.
CRM is an opera�onal system for sales and customer service agents; it has detailed data but isn't designed to let other systems work with that data.
DMP is holds summarized data used primarily to support ad campaigns.
In short: 'big data' and data warehouse overlap with CDP while CRM and DMP are quite dis�nct and you'll probably need both.
CDPs ARE MOST OFTEN CONFUSED WITH: DMP’s. Do you personalize website experiences or do targeted online adver�sing for your brand based on visitor behaviour? That’s your DMP at work. In marke�ng, DMPs help us track online behaviour of unknown customers who meet certain predefined segment a�ributes, to enable be�er targe�ng of ads. But a good way to put the difference in perspec�ve is: DMPs provide a summarized customer view to support segment-based marke�ng; CDPs provide a detailed customer view to support individual-level marke�ng.
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© 2017 All Rights Reserved. MarTech Advisor.
Primary purpose
Data transforma�on
Customer view
Outcome
Tenure
Data Warehouse CDP DMP CRM
Store enterprise wide data fromal func�ons – SCM, ERP, CRM, Accounts - in one place and provide comprehensive business intelligence for management to make business decisions
What is it? Storehouse of all enterprise data
Heart of the customer marke�ng engine
Backbone for all online adver�sing opera�ons
Repository of customer contactand transac�on informa�on
Enable marketers to have a direct access to all the customerdata, make data-backed decisions and translate those into ac�on (campaigns) quicklyand effec�vely
Create lists of people who match certain predefined a�ributes and enable more targeted adver�sing to them
Enable sales to iden�fy and track pipeline and customers over their life�me
• Cleaning• Matching• Enhancing• Reassigning based on constantly changing a�ributes
• Dedupe and normalize • Allocate to a pre-defined segment based on the a�ributes match
• Dedupe and normalize• Keep account-level and customer level info up to date
Data gathering • All the data from all the disparate legacy systems of the enterprise flows into the DW
• Data from all stages of the customer journey - tags, cookies, APIs from all online behaviour + inputs from martech stack + all touchpoints + external uploads• PII• Structured + unstructured data• Streaming (real �me) and historical data• First and third party data
• Anonymous first and third party data of new and unknown customer segments• Uses tags and APIs from web browsing behaviour• Structured data• No historical data- refreshes every 90 days• Data limited to behaviour that matches pre-defined a�ributes
• Manual • From other company systems like call centre, finance etc.• From other marke�ng tools that are integrated• Misses all the online and offline touchpoints that don’t involve a documented interac�on with the company
IT teams/ Enterprise Management
Marketers Adver�sers Sales or Customer Service teamsPrimary Users
DWs are not designed specifically for marke�ng and customer-experience purposes. They give a comprehensive view of the BI that impacts the firm-wide business strategy
Rela�vely comprehensive view of the customer focused on the big picture- both a historical context and a future predic�on about the best experience for a unique customer over their en�re journey
Limited customer view, focused on the campaign/present moment in the life of the customer (without a past or future focus or contextualisa�on)
Comprehensive view of the customers transac�onal history with the company
The enterprise-wide data is transformed into BI for MIS dashboards, data mining tools, and decision support systems
Make customer data ‘ac�onable’ to deliver individualized and seamless customer experiences
Deliver more relevant adver�sing to prospects or personalised website experiences to improve conversion rate
Help salespersons sell more to exis�ng customers and track prospects to closure with all the support intel they need
Through the customer journey Campaign specific Throughout the sales cycle
A COMPARISON OF THE VARIOUS DATA MANAGEMENT ENGINES
No real matching or data transforma�on intent for customer data is inherent to the warehouse. The parameters for data transforma�on are based on the BI needs of the management for informed strategic planning decision making across all func�ons
NEXT MONTH ON THE CDP EXPLAINER SERIES: (Issue 2/12)
DO I NEED CDP? (WHAT KIND OF CDP DO I NEED?)
Sources: from MTA content library and CDP Ins�tute Library
h�p://www.bluekai.com/files/DMP_Demys�fied_Whitepaper_BlueKai.pdf
h�ps://www.blueconic.com/resources/infographic-cdp-dmp/
Vizury webinar on CDP with David Raab: h�ps://www.youtube.com/watch?v=uvwtNxKgvs4
The Benefits of a Customer Data Pla�orm (Blueconic) an infographic showing how the a CDP improves the customer journey.
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Enterprise-wide business planning