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Today the focus on consumer privacy and data usage is front and center. Recent legislation has made significant changes in how consumer data can be used for advertising. Consequently, the biggest owners of customer data are tightening their rules on how their data is to be used. These changes are forcing brands to redefine their own data strategy, with a focus on ownership and management of first party data.
As recent as 12 months ago, most brands relied on DMPs (Data Management Platforms) to manage their data. The DMP was a good start, it enabled brands to centralize the cookie tracking and device identifiers of their users; however, the DMP fell short in managing actual first party data – customer data. Today brands need a data solution that will centralize all of their first party customer data. The new breed of data management software, coined the CDP (Customer Data Platform), has the promise of finally giving brands the solution they need. The majority of CDPs offer the capability of collecting, managing and activating on first party data while also capturing all of the attainable digital data (cookies, device IDs,) associated with their customers.
A CDP offers a new way of managing customer data that puts the brands in control. Brands can master the analysis, segmentation and communication of their customers in a personalized and relevant way. A CPD will make advertising more efficient by optimizing communications, at the same time this will add value to the customers by significantly improving their experience with the brand.
"Finding a qualified partner to help select, implement and launch a CDP is viable option and often can lead to quicker turn-around with less hiccups along the way"
Getting set-up with a CDP is not a difficult task, but it can be confusing. There are numerous solutions in the marketplace that claim CDP-like capabilities. Brands need to be mindful and conduct the necessary due diligence in selecting the right partner that meets their marketing needs. Once a CDP is selected, implementation and proper calibration of data is imperative to ensure the data is in the right format for the CDP to work properly. Finally comes the fun part, using the CDP to truly personalize the onsite experience and broader one-to-one communications.
The investment in licensing and onboarding a CDP can be significant. With that in mind, developing the business justification and a rollout plan will help sell through the idea with key stakeholders. Return in investment is almost certain so long as the CDP is leveraged in the right way.
Many marketers have a long list of priorities, adding the deployment of a CDP can seem daunting and could be set aside due to lack of resources. Finding a qualified partner to help select, implement and launch a CDP is viable option and often can lead to quicker turn-around with less hiccups along the way.
Data is becoming one of the single most important competitive advantages for brands. Brands shouldn’t take this lightly. It is no surprise that organizations with vast amounts of consumer data (e.g. Facebook, Netflix, Comcast, etc.) dominate the marketing ecosystem. Define your competitive data advantage by having your own central customer data platform.