What outcomes should a CDP enable?
AKA, How will a CDP make me the MVP at my next QBR?
Increase operational efficiency
The bottleneck between marketing and their technical counterparts in IT, data science, and engineering is very real. When consumer attention spans are reduced to “the speed of the feed,” filing a ticket for a custom segment can feel like writing a letter to Santa Claus. A CDP democratizes this kind of critical customer intelligence so marketers can focus on marketing, not waiting to get around to marketing. The democratized data a CDP offers frees up IT’s bandwidth so they can focus on tracking and modeling new data points, building new data science models, and enhancing attribution models.
Increase revenue generation
The more democratized customer data becomes across the marketing program, the better you will know your customers. The speed at which new campaigns can be tested and deployed allows teams to do more and be more granularly personal, which generates more revenue. The more insight into customer preferences and behavior you have, the better your decision-making will achieve business-level objectives like growing customer loyalty, increasing retention, AOV, LTV, purchase frequency, and customer acquisition.
Reduce media spend
On average, media spend generally accounts for one-third of all marketing costs. With the right data ingestion, analysis, and incorporation in place, suppression lists can update automatically. Simultaneously, you can also increase ROAS with more fine-tuned retargeting audiences, focusing spend on contacts that are unreachable through owned channels and those that actually convert when served paid media. Built-in testing capabilities that feed your segmentation and overall customer intelligence can quickly help in optimizing campaigns and assessing ROI across your media landscape.
Streamline technology costs
With a Smart Hub CDP (more on that in the next chapter), you can reduce overall marketing technology spend. Focus on getting the most out of every capability in your current stack or eliminate excess spend on solutions with redundant functionality. By being tech agnostic, you have the flexibility to assemble your plug-and-play dream team or to optimize your workflows around the strengths of suboptimal tech solutions with which you’re momentarily stuck.
When your team has a home base from which they can operate the entire stack, the manual work of marketing becomes intuitive, a natural extension of thinking. Constantly switching between different technologies for different pieces of the workflow puzzle is cognitively draining and an underestimated waste of resources.
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Table of Contents
- Chapter 1 Note to buyers
- Chapter 2 What is a customer data platform?
- Chapter 3 Why is it necessary to understand customer data?
- Chapter 4 What should a CDP do?
- Chapter 5 How do CDPs differ from other marketing tools?
- Chapter 6 What outcomes should a CDP enable?
- Chapter 7 Are there different types of CDP?
- Chapter 8 Choosing the right solution for your business
- Chapter 9 How does a CDP in my future look?
- Chapter 10 How to talk about a CDP within your organization
- Chapter 11 Additional resources