CDP as a potent option for hyper-personalized campaigns

We are all in a digital world that allows us to get quick access to reliable information through search; find the products that fulfill are needs on the fly; connect and converse with people whom we can't meet often; and of course, engage with content that keeps us informed and entertained.

At a high level, it all appears pretty seamless and cohesive. But, when you zoom in to reach your target audience, you will find that there are multiple touchpoints; endless and complex user journeys; ever-changing user behaviour and preferences; and varying levels of digital experiences.

All of this makes a marketer's life difficult. All the exciting innovation that has been happening in the digital marketing landscape - from expanding features in social media platforms, to new kind of devices, to new kind of media formats, to bleeding edge interfaces like generative search and Apple's visionOS - they continue to disrupt how marketing organizations reach customers across the lifecycle.

Having a unified view of the user journey, touchpoints, platforms, ecosystems, and offline events is needed to achieve marketing efficiency and effectiveness.

A quick refresher of what a CDP is all about?

Basically, a customer data platform or CDP is a collection of software that creates a unified customer database. It unifies customer data from different sources to give you a complete view of your customers. A CDP organizes real-time customer data into centralized profiles. It gets data from multiple sources, including CRM platforms like Salesforce and Microsoft Dynamics.

CDPs collect four types of data: basic, interaction, behavioral, and attitude. It helps marketers create targeted and personalized campaigns. There's some overlap between CDPs and CRM systems, since they're both data management systems. While CRM systems are mostly about sales, CDPs give you a comprehensive view of customers beyond sales.

Broadly, there are 4 types of CDPs : Data CDP which collects customer data from source systems, links it to identities, assembles unified profiles, and stores it in a database.

Next is Analytics CDP. They're like data CDPs with analytical features. It usually includes customer segmentation, machine learning, predictive modeling, revenue attribution, and journey mapping.

Then there is Campaign CDP which provides data assembly, analytics, and customer treatments. Unlike segmentation, treatments can be different for different people within a segment. A treatment might be a customized message, an outbound marketing campaign, a real-time interaction, or a recommendation.

Finally, there is Delivery CDP which provides data assembly, analytics, customer treatment, and message delivery. The delivery method can be email, web, mobile, CRM, advertising, or a combination of all of them. These products start out as delivery systems and add CDP features to support advanced analytics, personalization, and multi-channel campaigns.

What benefits does it deliver for marketers?

The CDP market has been consistently growing over the past decade or so of its existence. According to Customer Data Platform Institute, the number of companies offering CDP solutions grew from about 17 in 2016 to 177 by mid of 2023. And as per the research firm, IDC, CDP market is expected to cross $5.7 bn mark by 2026.

I'm not throwing these numbers just to impress you. This is to signify that there is a value that CDP solutions are delivering for businesses and marketers which is broadly indicated in the numbers. Amongst the many benefits they offer, the ability to build a 360-degree customer view might the biggest one. As a centralized hub, it helps create a 360-degree view of customer interactions by aggregating and organizing data from various touchpoints. In this way, marketers can get deep insights into customer behaviors, preferences, and engagement. Which is essential for crafting targeted and personalized B2B marketing campaigns.

CDPs also let marketers tailor messages to customers based on their attributes and behaviors. In the highly competitive B2B landscape, personalization increases engagement, trust, and conversions.

Lead scoring is essential for identifying high-potential prospects. B2B marketers can use data stored in a CDP to score leads. Marketers can also segment based on factors such as industry, company size, and buying behavior to create highly targeted campaigns.

Today, B2B buyer's journey is more complicated than ever. People interact with brands on multiple channels, including websites, emails, and social media. With a CDP, marketing messages are consistent and coherent across different touchpoints. Unified branding helps strengthen brand identity and create a cohesive customer experience.

Key points to be borne in mind while onboarding a CDP

To actually benefit from adopting a CDP, there are certain practical business challenges that must be borne in mind. I will share my two cents on how you can address them. Data quality and accuracy are key to CDP success. It's hard for B2B companies because they deal with complex, siloed data sources like CRMs and marketing automations.

Implementing well-thought-out governance protocols, cleaning and validating data, and integrating existing systems can help. Integrating existing systems is a challenge in itself and must be done properly. Regular data audits can be helpful, too.

Companies have to be really careful about how they collect, store, distribute, and use customer data. GDPR and CCPA compliance has become critical for marketers. To make sure CDP usage aligns with these regulations, businesses and marketers have to fulfill this crucial requirement.

Stay on top of changing data protection laws, implement strong security measures, and get customer consent. Make sure the CDP complies with relevant privacy regulations by working closely with legal and compliance.

A CDP takes time, money, and skilled personnel to implement and manage. These resources may be hard to allocate for B2B companies, especially if they're competing for resources.

Assess resources, train existing staff, and consider partnering with external experts if needed. Make sure the implementation process goes smoothly by creating a realistic timeline and budget.

Silos between marketing, sales and IT departments, and lack of collaboration can make it difficult to adopt a CDP. For the platform to work at its most effectively, you need organizational alignment.

Promote collaboration and communication across departments. Make sure all the people involved understand the benefits of the CDP. Establish cross-functional teams to manage the CDP.

Then there's always resistance to change. Create a comprehensive change management plan with communication strategies, training, and ongoing support. Demonstrate how the CDP impacts day-to-day workflows and give staff plenty of resources to adjust.

CDP ROI can be hard to quantify, especially in the early stages. It may take time and analysis to figure out if the platform generates revenue and keeps customers happy.

Before implementing the CDP, define clear metrics. Keep track of these metrics to see how the platform impacts marketing, sales, and customer service.

3 use case suggestions for a CDP to get you started building your own

Now, with the understanding of key benefits and challenges of getting a CDP solution, you might be think that it is something to consider for your business. It makes sense. After all, the basic promise of technology is to make things easier, faster, efficient and effective. But before you start counting dollars to commit to a marketing solution, I would recommend that you identify a use case first.

And there is no dearth of use cases, but which one suits your business must be figured out. I am sharing 3 practical use cases that might be of relevance and help you get started thinking of what would work best for your B2B business.

Personalization in marketing is considered to be the most important aspect of customer reach and engagement. Still, very few companies are truly able to take advantage of personalization in their marketing campaigns. A B2B company could utilize a CDP to analyze customer preferences, purchases, and behavior. They can then use this data to create targeted and personalized marketing messages, which increase customer engagement and satisfaction.

Another use case is when a B2B company wants to streamline its marketing messages across email, social media, and online ads. By synchronizing customer data, CDPs ensure consistent and coordinated communication. In turn, this results in a seamless customer experience and reinforces the brand message.

I'll leave you with a third use case, launching a new product and expanding to new markets. Using a CDP, the company can identify potential early adopters by analyzing existing customer data. It can also tailor marketing strategies for successful launches and market expansion based on market preferences.

B2B marketers continue to face disruption from continuous technological innovation and shifting customer preferences. The result is an increase in data points, parallel touchpoints, and sophistication, as well as a demand for better experiences from consumers. While all this is going on, the amount of data being collected is fragmented and becoming outdated fast.

So, a user's journey is getting more complex and they are seeking better experiences; regulations like GDPR and CCPA are impacting how marketers track and collect data; the data performance is impacted due to fragmentation and ageing; and there is pressure on marketers to run more personalized campaigns for brand awareness and lead generation.

Having an integrated marketing solution in the form of CDP could provide the much-needed access to insights on customer preferences, behaviour, and attitude to deliver game-changing outcomes.