RISE OF CDP
The Rise of the Customer Data Platform And What It Means To Businesses
Rise of CDP usage
Building customer loyalty: According to Forbes, there are 44% of the organization, that are surveyed by Forbes insight report, stated that they are using CDP for building customer loyalty (Forbes, 2019).
Enabling business to individualize personalization: According to The Relevancy Group, 62% of companies are using CDP for enabling them to individualize personalization in emails, while 55% of companies stated that they are using CDP for advertising, and 53% of companies are using this for real-time targeting.
Repositioning of Products: According to a survey conducted by the CDP institute, 29 new vendors developed in the industry in 2018. This increasing number of suppliers are supplying the product that is developed as CDPs while old products have been repositioned by the new products as CDP (Evergage, 2019b; Institute, 2019). In 2018, the estimated growth of the CDP market expanded by up to 50% to reach USD 740 million. In 2019 these revenues reached up to USD 1 billion.
Assists in data management: According to a report by Gartner, 52% of the managers who are responsible for data integration, management, and formatting, are using CDP for most of the time-consuming activities (Gartner, 2019). According to the researchscape, 46% of the marketing managers have their data connected to a few of their channels, while 27% do not have any channel connected. According to a report, about 31% of managers stated that personalized data management is not easy without CDP (RESEARCHSCAPE, 2019).
Integration of offline and online data: While 39% of managers find it difficult to integrate offline and online data according to Forrester (evergage, 2019a). According to Forbes, 93% of the executives are agreeing on the fact that the utilization of customer data in their campaigns creates a noticeable change in the organization’s ability in meeting troublesome (Forbes, 2019) and competitive challenges (Sweet, 2019).
How CDP Has Helped to Tackle the Marketing Challenges
In the last few years, Customer Data Platforms (CDPs) has developed rapidly. It’s no wonder that marketers are confused about what CDPs are, how they should use them, and how to evaluate a CDP buy.
Some marketing challenges faced by business
There are many new categories developed in CDP, the marketers are now confused to converge the categories according to their requirements.
One of the major challenges that a marketing manager is facing while advertising his campaigns is that paid campaigns are not getting high conversion rates.
The customer personalization is a serious problem for the managers, they usually forget the loyal customers to the brand. Some of the advertisement channels are working best for old customers, while some are focusing only on the new and latest customers.
The data cannot be grasped in a single view. The major challenge for the managers to develop an exclusive campaign for the high-converting group of customers. Such scenarios and challenges not only create frustration for the managers but also decrease the sales level by 6 times. At the same time, by using CDP, firms can get 5 times more competitive advantage over the other firms.
No doubt fractured data is not a new problem, but it is an old-age problem when it comes to data management where marketers strive to stitch the data together. Siloed data makes all efforts of a marketing manager into vain, and make him fail in the execution of his top operational priority. Siloed data cannot be analyzed for the automation of insight generation for the organization’s team and sales personnel. Though with the emergence of advanced predictive analytics, the major portion of this problem has been solved, the real problem still lies intact with the traditional methods used to access the data.
Marketing managers usually spent 80% of his work time in acquiring and preparation of data. A marketing manager who strives to create a great customer experience database faces the same problem related to customer data, integration and security problems. But the managers who have adopted intelligent CDP platforms at the early stage of data entry, do not have such problems anymore.
Role of CDP in Solving Marketer’s Problems
In a marketer’s toolbox, CDP is the most sought-after tool that is used to maintain customer relationships. With the emergence of CDP, the importance of CDP increased with time at all levels whether it is strategy formulation phase or strategy implementation phase.
Synchronized customer base data: A CDP allows a marketing manager to work in tandem along with the other data hubs in an organization. It creates an insight harmony with the rest of the organization. Hence, it can be said that only CDP can create personalized yet, synchronized customer base data across all touchpoints that usually interact with the brand.
Access to siloed data: The marketers can now access from siloed data. A CDP ingests primary data coming from all types of data sources; including external, internal as well as third-party data sources.
Helps in data organization: The organized data by CDP can further be used in cohort management, cohort segmentation, campaign management, analysis and insight creation, and so on. At the same time, the data remain secure due to CDP platforms that are designed to comply with data regulations.
References
evergage. (2019a). Retrieved from https://www.evergage.com/resources/webinars/cdp-hype-vs-reality-a-discussion-between-experts/
Evergage. (2019b). 2019 Trends in Personalization Survey Report. Retrieved from https://www.evergage.com/resources/ebooks/trends-in-personalization-survey-report/
Forbes. (2019). The Rise Of The Customer Data Platform And What It Means To Businesses. Retrieved from https://www.forbes.com/sites/insights-treasuredata/2018/06/20/the-rise-of-the-customer-data-platform-and-what-it-means-to-businesses/#737c2ef353a1
Gartner. (2019). Retrieved from https://www.gartner.com/doc/3883173/presentation-marketing-data-analytics-survey
Institute, C. (2019). [Press release]. Retrieved from https://www.cdpinstitute.org/Press-Release-January-2019-Industry-Update
RESEARCHSCAPE. (2019). 2019 Trends in Personalization. Retrieved from
Sweet, K. (2019). Customer Data Platform (CDP) Stats You Can’t Ignore. Retrieved from https://www.evergage.com/blog/customer-data-platform-cdp-stats-you-cant-ignore/
