The ABCs of CDPs Part III – “How?”

In the third installment of our introduction to CDPs, we’re going to take a high-level look at how enterprise marketers use CDPs by examining the specific data sources that they are integrating with them.

[We’ll dig deeper into the topic in a webinar scheduled for September 5th @ 1PM ET; please join us then if you’re interested in learning more.]

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  • CRM Data – As the cornerstone of many marketer’s data-driven marketing efforts, CRM data and CRM systems top the list as the most integrated into CDPs for both B-to-C and B-to-B marketers. Customer Profiles and Demographics – Integrating customer profile and demographic data is critical for marketers across verticals and sectors. A primary benefit of the CDP technology is the ability to efficiently manage these assets.
  • Customer Online Spending – Online spend data, especially when updated in real-time, is highly valuable for most marketers. The ability to normalize and syndicate this data to other systems is important to both B-to-C and B-to-B marketers.
    Customer Service/Support Information – Service and support data is often dynamic and can live in a wide range of systems. Those marketers that integrate into a CDP make the data readily available to key customer stakeholders.
    Website Behavior – Another cornerstone for many marketers, real-time website data can be some of the most valuable when targeting users with personalized messaging.
  • Email Marketing Response Data – Email response data is underutilized in many marketing organizations. But over one-third of B-to-C and B-to-B marketers who have implemented a CDP, feed it with email response data.
  • Digital Advertising Response Data – By efficiently integrating digital response data into their CDP, marketers across sectors are better able to monitor the efficacy of paid media efforts and attribute sales to the channels and campaigns that drove them.
  • Customer Offline Spending – To gain a complete picture of the customer journey and to more accurately measure marketing effectiveness, nearly one-quarter of B-to-C and more than 25 percent of B-to-B marketers integrate offline spending.
  • Mobile Behaviors, Including App Utilization – As more marketers conduct more commerce through mobile apps, this data has become more critical to marketers of all stripes.
  • Previous Marketing Offers – The artificial intelligence and machine learning algorithms that drive some of the data orchestration and personalization from CDPs are informed by data from previous marketing offers. The timelier the information, the more useful/effective.

Join us on September 5th to learn more and download a copy of the research here.

The ABCs of CDPs Part II – “Why?”

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Yesterday we answered the question “What is a CDP?” Today, we dig into “Why?”

What factors have fueled the growth of the CDP space and why are data-driven marketers increasingly turning to CDPs to help them drive core business goals and positive user experiences?

The graph above highlights the top reported tactics enabled by a CDP and does a good job of answering our question.

  • Individualized email personalization: Sixty-two percent of marketers across business verticals who have implemented a CDP use it to help drive individualized personalization in email. The email channel, which is responsible for driving upwards of 20 percent of total revenue for many brands, was once primarily a broadcast channel with marketers “blasting” messaging out to large segments of lists. Today, due to the availability of rich customer data, marketers can hone each message to be individually relevant to each recipient. This hyper-relevance drives significant lifts in response rates and business results from the channel.
  • Addressable advertising: Opportunities for addressable advertising have never been more plentiful and are now extending beyond the web to television and offline opportunities. But the efficacy of addressable advertising is highly contingent on quality and the availability of the customer data that informs it. Fifty-five percent of those who have already implemented a CDP use it to help drive audience selection and measure addressable ads. CDPs can also give marketers better visibility into the value of different types of customers and therefore help them hone and optimize customer acquisition cost benchmarks/limits.
  • Real-time targeting: Messaging and advertising that reaches the intended target at precisely the appropriate time has a much greater chance of driving intended behaviors than messaging that is delayed, batched, and/or deployed at a scheduled cadence. To execute highly relevant campaigns at these precise moments, 53 percent of marketers who have a CDP use it for real-time targeting. “Speed of data” is critical to these marketers and the data agility that a CDP affords is a key towards reaching the right target, at the right time, with the right message.
  • Optimized customer experience: Forty-nine percent of marketers with a CDP use it to drive personalized website experiences. One of the primary benefits for many marketers that leverage a CDP is the ability to progressively profile website visitors based on various identity management mechanisms and to serve them content that is most relevant based on known and inferred attributes. This functionality is critical to marketers across business verticals but especially so for those in media and publishing who may offer mixtures of free and paid content [i.e.: five free articles a month]. CDPs can help identify users in real-time and serve them the appropriate content. Overall, this greatly improves the customer experience.
  • Targeting optimization: Retargeting site visitors, cart abandoners, and other prospects with messaging in other channels is a highly utilized tactic by almost all online marketers. It is generally easy to employ, is relatively low cost, and often generates higher response rates than other campaigns. Most marketers who retarget at scale, however, do so inefficiently. This often creates negative customer experiences, because these marketers continue to retarget customers, with the same offer, even after they have made the purchase. Forty-two percent of marketers use their CDP to help them suppress online advertising based on purchase data, and 27 percent change the ad or offer based on purchase or behavior data. By employing these tactics, marketers with a CDP can drive much more effective and efficient media spend.

Tomorrow we’ll take a look at “how” marketers are using their CDP – what data sources they connect and what benefits they gain by doing so.

For more detail, download a full copy of the research, or check out excerpts in the new issue of The Marketer Quarterly.

 

The ABCs of CDPs Part I – “What?”

I’ve spent the past three months digging into Customer Data Platforms – speaking with marketers who use them and examining the vendors who supply the technology and services to enable them. Over the next three days, I’ll share some of the key findings of our research and answer some key questions about the role of the CDP in the enterprise marketing stack.

In Part I, “What is a CDP?”

In a relatively short period of time, Customer Data Platforms have carved out a dynamic, new, and expanding space for themselves, within the enterprise marketing stack. Although the term was coined as early as 2013, it is primarily over the past 18 months that vendors have embraced the moniker and marketers have realized the distinct value proposition that a CDP brings to the table.

CDPs enable marketers to:

  • Join and Combine Data – Marketers who are facing increasing volumes of useful customer data are increasingly turning to CDPs to help them join and integrate these often disparate and unnormalized customer data sources to make them more easily available for marketing applications – targeting, personalization, measurement, to name a few.
  • Create and Manage Profiles – CDPs can help marketers navigate the waters between known and unknown users through various probabilistic and deterministic identity methods. This enables CDPs to stitch together user profiles to more accurately identify and address people as individuals across channels and devices.
  • Enrich and Augment Data – While primarily focused on first-party data, CDPs can help marketers enrich data on a continuous basis by incorporating a variety of sources and efficiently augmenting these to ensure accuracy and usefulness to other systems across the enterprise.
  • Syndicate and Activate Audiences – CDPs help marketers identify the appropriate customers and prospects to address through both paid and organic methods across online and offline channels. By using a CDP to inform audience selection and content recommendations, many marketers can individualize more campaigns at a more precise level, driving increased response rates and more efficient paid media spend.

The Relevancy Group defines Customer Data Platforms as data management solutions specifically designed for marketers that enable a view of the customer that is:

  • Holistic: Able to interface with and encompass the wide array of data sources available to marketers today.
  • Integrated: Able to map and tie those diverse data sources together seamlessly, accurately and cleanly mapping to individual people and their journeys.
  • Persistent: Providing an ongoing, evolving, always-available, always-updated data stream over time.

Put more succinctly, CDPs are HIP. The final definitional element of a CDP relates to control. A CDP gives the marketing team full mastery of data usage, control, and security. That includes determining who within the organization has access to the data integrated within the CDP, and whether and how that data gets leveraged externally.

CDPs are driving efficiency and efficacy for marketers across business verticals; in Part II of this series, we’ll dig deeper into the specifics of how and why.

If you can’t wait until then, click here to download a copy of the research right now, and feel free to follow up with me directly for an analyst inquiry if you do.

Research Subscriber Series – 2018

The Relevancy Group Research Subscriber Series – The 2018 Offering

What is it? An annual subscription to our 2018 research The Relevancy Groupthat includes access to our back catalog of original hypothesis driven research.  The Research Subscriber Series includes our Relevancy Ring Buyer’s Guides, market landscapes, industry specific research and tactical advice that is based on case studies, executive and consumer surveys.  Each report comes with inquiry access to go one-on-one with the analyst(s) that authored and/or contributed to the research. We provide direct access to answers.

Company Wide Access: With an annual subscription to The Research Subscriber Series, you get company wide access to the latest and best thinking from The Relevancy Group (TRG). Topics cover Martech and Adtech strategies and tactics as well as provide detailed survey analysis of thousands of executives and consumers. $15,000.00 Annually.

Benefits of The Research Subscriber Series:

  • Inquiry access to our tenured TRG analysts.
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  • Company wide access to research.
  • Custom analysis of TRG survey data.
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2018 Research Topics

  • Email Marketing, Customer Experience
  • Everychannel, Omnichannel Marketing
  • Madtech (Martech + Adtech)
  • Customer Data Platforms, Data Management, Data Onboarding (CDP, DMP)
  • Identity Management/Resolution
  • Personalization, Targeting and Retargeting
  • Machine Learning and Artificial Intelligence
  • Mobile
  • Video
  • Social
  • Automation, Campaign Management
  • Data Hygiene and Acquisition
  • Attribution and Analytics

Primary Industries Covered

  • Financial Services
  • Media/Publishing
  • Retail
  • Travel/Hospitality

2018 Report Titles

  • Consumer Email Marketing Trends
  • Consumer Mobile Marketing Trends
  • Consumer Social Marketing Trends
  • State of The Email Marketing Industry 2018
  • Email Marketing Forecast
  • ESP Buyer’s Guide
  • Email Agency Buyer’s Guide
  • Customer Data Platform Buyer’s Guide
  • Identity Management Buyer’s Guide
  • Personalization Machine Learning Buyer’s Guide
  • Analytics Buyer’s Guide
  • Video Platform Buyer’s Guide
  • Digital Agency Buyer’s Guide
  • Madtech Acquisition Trends
  • Email Marketing Acquisition Benchmark
  • State of Retail Marketing
  • State of Financial Services Marketing
  • State of Media/Publishing Marketing
  • State of Travel/Hospitality Marketing
  • Martech Innovators
  • Adtech Innovators
  • Mobile Apps Benchmark
  • State of Digital Video Advertising
  • State of Identity Management
  • People Based Marketing Benchmark
  • Everychannel Attribution, End of The Last Click
  • Advertising Trends in 2018
  • Social Marketing Innovators   *Titles subject to change

Who are the authors? The Relevancy Group is proud to have the most tenured research staff of any analyst/research firm in the industry. They are the best from Forrester Research, Jupiter Research, The IAB, NPD Group, eMarketer and App Annie. All of our analysts have at least 15 years of experience in their coverage area as a practitioner, industry analyst – or both. Learn more about our team.

What does it cost? $15,000 for 28 reports which is a 15% discount from buying them on a one off basis.  This provides enterprise level access, and is a fantastic value for any organization seeking the latest analysis. As a former Jupiter Research and Forrester Research executive I also know it is the most affordable comprehensive apporach to delivering the best original research with the most tenured staff.

Subscribe today, contact us  or call 877.962.6886 for additional information.

The Marketer Quarterly Issue 15

Get The Latest Issue of The Marketer Quarterly

Free with registration get the latest edition of the digital magazine for marketers by marketers. This isssue includes an excerpt of The Relevancy Group’s Email Agency Buyer’s Guide, CMO Interviews and the latest on digital marketing trends. Additionally this issue covers:

  • Social Drives Honda Campaign
  • American Express Campaign Parodies Business Jargon
  • L’Eclisse Makeup Video Tutorials Showcases New Line

Register to get the a free subscription or download the MQ App and read it on all mobile platforms.The Marketer Quarterly

A Week With Adobe

I had a great week at Adobe Summit, where I was joined by 12,000 marketing executives.  Summit The theme this year was Experience.  Adobe pointed out that businesses that are experience driven have higher net promoter scores and revenue than those that do not have an experience focus.  They defined Experience as the sum total of interactions with a brand. This aligns with The Relevancy Group research, most particularly findings in our latest consumer research, Handle with Care – Consumer Email Marketing Behaviors.

They went on to define an Experience business as one that 1) knows and respects the customer 2) speaks in one voice 3) the technology is transparent 4) is focused on customer delight

The big announcement was the introduction of Adobe Experience Cloud, an overarching cloud platform that ties together, their Creative, Document, Marketing, Analytics and Advertising Clouds.  This unifies the data structure, user interface and includes a number of enhancements to share information across the previously disparate clouds.

Machines Everywhere

They discussed the value of real-time data and their machine learning AI framework Sensei took center stage.  Almost every part of their clouds is now or will be benefiting from the Sensei framework. IBM had their event at the same time and similarly was discussing the same things their Watson tool, which TRG’s Nick Einstein writes about here.  Adobe Sensei is built into the platform, harvests data across the cloud, compares patterns; creativity, intelligence, content.  It also creates a virtual analyst, provides automated anomaly detection and alerting.  The Sensei demos were impressive. In one demo in store ads changed based on facial recognition, different offers were displayed based on gender. It was something out of the film The Minority Report.

More Adobe Summit announcements included:

  • New, Adobe Advertising Cloud, combines the Media Optimizer products along with recently-acquired TubeMogul offering.
  • Experience data model is a common language across their cloud and provides for an open ecosystem, utilizing Adobe I/O.
  • Adobe introduced Launch, their next gen tag management system, fast connections at the experience layer.  Launch, Adobe’s tag management partners include Facebook, Twitter, Zendesk and more, it offers fantastic reach.  This data will also feed into their Adobe Cross Device Co-Op  to enhance their Identity Management solution.
  • Adobe Cross Device Co-Op growth, Information on 850 million devices are now in the co-op which was announced at the 2016 Adobe summit. That is big year-over-year growth.
  • Adobe Analytics now includes a virtual analyst that can spot and analyze anomalies and bring audiences, behaviors & ad data together.  Lots of powerful analytics and insights in one place, on one canvas.  That’s impressive.  The text alerts for anomaly also provides likely root causes.  These are smart alerts and this is something that TRG has been advocating for some time.  It is great to see this in production.
  • Their Advertising Cloud is integrated with the rest of experience cloud, same measures and audiences for re-targeting and on stage, they suggested that they deliver higher match rates.
  • They demo’d ability to use first party customer data in a linear TV buying with one click.  This is a first and impressive.  While this has existed for digital and OTT TV, but never has linear TV buying been so easy to combine with first party data. The targeting potential is enormous.
  • New Marketing Cloud: Fluid experiences using fragments content. Snippets that can be used across screens and channels.  This should improve the marketer’s ability to test and create more personalized messages and experiences.
  • New to Marketing Cloud: Adobe Dreamweaver integrated into Adobe Campaign, one click content dropping, this is a big efficiency gain for email marketers.
  • Expanded Adobe and Microsoft partnership, including new integrations with Dynamics CRM, Azure and Power BI.

Sneaks

Their annual summit favorite, Sneaks did not disappoint.  Hosted by SNL’s Kate McKinnon it was an entertaining way for Adobe to sneak preview some of the items they currently have in development.  The item that seemed to capture everyone’s attention was the ability to inject advertising into VR experiences. Interesting stuff but, future forward for sure.

As always it was great to catch-up with the Adobe team, partners and mutual clients. Thanks to the Adobe AR and Marketing Cloud team for making me feel so welcome.

You can watch the Adobe keynotes and presentations here.

Until next time,

 

 

David

#RampUp 2017 – the Oscars of the Madtech World

By Peggy Reinders, Principal Analyst

The who’s who of the Madtech world attended Liveramp’s RampUp17 in San Francisco this week. When looking beyond the sea of blue sport coats and black sweaters, it was apparent that everyone was there. CEOs, CMOs, and VPs of Marketing from over 2000 premium brands, adtech vendors, media publishers, analysts, and industry trade organizations were in attendance. Even sales people with no conference badge were hanging out in the Fairmont Hotel lobby waiting to catch a glimpse, or better yet a meeting, with those top execs.  RampUp17 was the Oscars of the Madtech world! A premier event that brought together a glamorous network of players who all contribute in some way to our digital marketing ecosystem.

“Wow” is the leading exclamation used in Oscar speeches.  At RampUp17, “Identity” was the word.

Identity is the connective tissue that allows for coordinated customer experiences and can enable people-based marketing. As much as we love this ideal, after listening to the various sessions at RampUp17, it was evident that we still need to lay the groundwork for it to be understood.

At the end of the day, many Marketers are confused about Identity and how they should approach it within their organizations. There’s an opportunity for the industry to create a common language around Identity, as well as standards, similar to what we have for ad creative. This puts everyone, Marketers and vendors, on the same playing field.

In addition, Marketers can start tackling Identity with their own use cases. Every organization is unique so they should start with building enough of a customer Identity to generate the insights and engagement required for their business. For some, this may be resolving mobile device IDs and physical address.  For others, marrying cookie IDs with their CRM file may suffice.

The Relevancy Group did research on Identity Management methods and found that adoption is increasing.

Here’s to hoping that as we look back at the Best of 2017, the winner is Identity.

Peggy