Customer Data Platforms (CDPs) have quickly become indispensable tools in today’s dynamic, data-driven landscape. They empower organisations to consolidate and harness customer data. In turn, this elevates their marketing, sales and customer service strategies. However, as technology rapidly evolves and data privacy concerns escalate, selecting the right CDP can be a daunting task.
Amid large-scale changes that are happening in marketing, including the growing reliance on AI and Google’s deprecation of third-party cookies, choosing the right CDP is table stakes. Businesses can make informed decisions that align with their unique strategic objectives and regulatory requirements by considering key factors like:
- data integration capabilities
- usability
- business impact
- reliability
- performance
- scalability
In this article, I unravel the complexities of the CDP selection process. I shed light on how a comprehensive framework can help decision-makers choose the best option to meet their specific needs – and, importantly, drive value for their business.
Know Your Use Cases
First things first, diving into the world of CDPs begins with knowing your goals. For example, maybe you’re looking to:
- Develop personalised marketing messages for your customers
- Decode their likes and interests
- Streamline their experiences across various channels
Or, perhaps your focus is on boosting customer loyalty, anticipating their next moves, ensuring privacy compliance, or engaging with them instantly. Whatever it may be, gaining a clear understanding of the use cases you aim to address will guide you in selecting the appropriate tools. By doing so, you’ll be able to harness the power of your data, securing a competitive edge that sets you apart.
10 Critical Questions to Consider When Choosing a CDP
The buzz around CDPs and their role in resolving identities is louder than ever. However, as the landscape evolves, it’s clear the promise of many CDPs to unify customer data into actionable insights aren’t always as they appear.
The reality is that sophisticated, modern identity (ID) resolution capabilities, which are essential for creating a truly unified customer view, are scarce. This discrepancy raises several critical questions for marketers looking to tap into the full power of their customer data.
They are:
- Are you beginning with a clean data foundation?
How important is data accuracy to ID resolution? A common pitfall is relying on outdated, third-party-based ID resolution solutions. The most effective data for ID resolution is the data your company already has. Ensure the CDP can use your data effectively for ID resolution. - How do you plan to enrich your customer data with AI?
The algorithms behind ID resolution are paramount. ID resolution should go beyond merely linking keys. With most businesses having keys for only 15-20% of their customer data, it’s essential to have a strategy for the remaining data. A sophisticated ID resolution algorithm can use all of the available data to link customer information, providing a more comprehensive customer view. - How do you ensure stable IDs when fresh data sets are added?
As new data is introduced, the generated IDs representing customer records must remain stable. Unstable IDs render downstream processes unusable, defeating the purpose of ID resolution. - How do you configure matching rules?
Manual rule sets for matching are not only expensive and difficult to maintain but also prone to quality issues. Opt for a CDP that uses machine learning (ML) models for matching rules. They offer greater accuracy and easier maintenance. - How do you manage multiple forms of Personal Identifiable Information (PII) for one person?
It is not uncommon for a customer to have dozens of different attributes—this is disproportionately common in your best customers. It’s critical to have ID resolution capabilities that force you to choose or enable you to capture the value of all of this data. - Do you have the ability to handle complex household scenarios?
The ability to link individuals within the same household is crucial, considering shared devices, accounts and more. A CDP should offer the flexibility to handle complex householding scenarios. - Is your quality assurance (QA) process defined and repeatable?
A rigorous QA process for data is essential to correct for over- or under-matching. A CDP should have a defined, repeatable QA process to ensure data accuracy. - What does the cost structure look like as profiles are continuously updated?
ID resolution is computationally intensive. Be wary of providers that pass these costs onto you. This can significantly increase the total cost of ownership for your CDP. - Can you unmerge data in the event unwanted uploads occur?
Mistakes are inevitable, but correcting them should not incur additional costs. Ideally, a CDP will proactively detect and prevent the introduction (or use) of bad data. - How flexible is your ID resolution process?
No two businesses are the same, and your ID resolution process shouldn’t be either. Look for a CDP that allows for the customisation of the ID resolution process to fit your unique business needs without having to start from scratch.
From data to dollars: Brooks Running’s CDP success story
Finally, remember to ask vendors for examples of real-world use cases that showcase the impact of their platform in terms of ROI and speed to value. Take Brooks Running, a leading manufacturer of running shoes, apparel and accessories, for instance. With the use of a CDP, the company’s marketing team has enhanced its campaigns across all channels. This has led to significant improvements, including:
- 260% increase in paid search click-through rate
- 150% average increase in paid social engagement metrics
- 128% return on ad spend
- Email open rates more than doubled, showcasing the effectiveness of personalised communication
Navigating the CDP market requires a discerning eye for the capabilities that truly matter. Sophisticated ID resolution is at the heart of understanding and engaging customers effectively. By scrutinising potential CDPs against these critical questions, marketers can ensure they choose a platform that not only promises but delivers a unified, actionable view of their customer data.
Amperity delivers the data confidence brands need to unlock growth by truly knowing their customers. With Amperity, brands can build a unified customer profile foundation powered by first-party data to fuel customer acquisition and retention, personalize experiences that build loyalty, and manage privacy compliance. Using patented AI and machine learning methods, Amperity stitches together all customer interactions to build a unified view that seamlessly connects to marketing and technology tools. More than 400 brands worldwide rely on Amperity to turn data into business value, including Alaska Airlines, Brooks Running, Endeavour Drinks, Planet Fitness, Seattle Sounders FC, Under Armour and Wyndham Hotels & Resorts. For more information, please visit www.amperity.com or follow us on LinkedIn, Twitter, Facebook and Instagram.
