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.

The Relevancy Group releases their new CDP Buyer’s Guide and Issue 18 of The Marketer Quarterly

The Relevancy Group releases their new CDP Buyer’s Guide and Issue 18 of The Marketer Quarterly

BOSTON – Aug. 14, 2018 – The Relevancy Group, a leading market research and advisory firmCDP Buyer's Guide today released “The Relevancy Ring – CDP Buyer’s Guide.” The research evaluates six CDPs (Customer Data Platforms) that include AgilOne, BlueConic, IgnitionOne, Lytics, RedPoint, and Tealium. Vendors are evaluated on customer satisfaction and product functionality.

The massive 35-page report also provides details on every aspect of vendor selection and market analysis on marketer trends as well as deep inspection of the platforms evaluated.

Most marketers today have more customer data than they can effectively leverage for marketing purposes,” says The Relevancy Group Vice President of Research, Nicholas Einstein, “and in many organizations, those data can be found in a wide variety of formats and is spread throughout disparate systems across the enterprise.” “CDPs can help marketers tie these data sources together and make them actionable in real-time,” he continues, “we were extremely impressed by the service and tech we saw from these six top vendors, and forecast continued growth in the space.

Some of the research findings include:
• Of those marketers that don’t yet have a CDP in place, 32% report planning on implementing one within the next twelve months
• Over 90% of marketers who have a CDP in place report that their marketing KPIs have improved since implementing a CDP
• Over 86% report that their marketing and advertising operations have become more efficient since implementing a CDP

The Relevancy Ring – CDP Buyer’s Guide is available for purchase at $2495.00 and is included in The Research Subscriber Services, that includes 24 reports annually.

The Relevancy Group will be hosting several upcoming webinars to discuss the findings. You can MQ Issue 18register for webinars at www.relevancygroup.com/event

An excerpt of the research is also included in issue 18 of The Marketer Quarterly, The Relevancy Group’s digital magazine. Register to get a free subscription to The Marketer Quarterly online or via the MQ app for any iOS, Android, and Amazon. http://www.marketerquarterly.com

Contact
Media at The Relevancy Group