What is a Customer Data Platform?
According to many experts, “A Customer Data Platform is a marketer-managed system that creates a persistent, unified customer database that is accessible to other systems and users in an organization”.
This definition has three critical elements:
– “marketer-managed system“: the CDP is built and controlled usually by the marketing department, not the corporate Information Technology department. Some technical resources will be required to set up and maintain the CDP, but it does not require the level of technical skill of a typical data warehouse project. What really matters is that marketing is in charge of deciding what goes into the system and what it exposes to other systems. In particular, it means marketing can make changes without asking anyone’s permission, although it may still need outside help.
– “creates a persistent, unified customer database“: the CDP creates a comprehensive view of each customer by capturing data from multiple systems such as your CRM, AMS, Marketing Technology, linking information related to the same customer, and storing the information to track behavior over time. The CDP contains personal identifiers used to target marketing messages and track individual-level marketing results.
– “accessible to other systems“: data stored in the CDP can be used by other systems for analysis and to manage customer interactions.
Why is a Customer Data Important?
Whether you refer to them as a member, customer, donor it doesn’t realley matter.
Today’s customers simply assume that your company knows – and remembers – who they are, what they’ve done, and what they want, at all times and across all channels. Personalization is important.
The best marketers and marketing technologists know that gathering and acting on unified customer information isn’t easy. In fact, just a few companies have actually achieved complete integration. For many enterprises, it’s an elusive goal. Thus, the idea of the software unicorn emerges.
For most who do not find that elusive unicorn, the rest are battling with technology, strategy, budgets, organizations, staff skills, and other obstacles to success.
Franky, your members don’t know or care about those challenges. If you don’t meet their expectations, they’ll assume you don’t care about them and take their business to somebody else they believe will treat them better.
Whether those other firms will really give them a better experience almost doesn’t matter: once you’ve lost them, you’ll have to fight twice as hard to get them back.
No wonder so many marketers have made a unified customer experience their highest priority.
The Reason For Customer Data Platforms?
A unified customer (member or donor) experience is impossible without unified customer data. Most data originates in separate systems that weren’t designed to share it with anything else. Traditional methods for collecting that data into unified customer profiles, such as an enterprise CRM system (donor or membership) have failed to solve the problem.
Newer approaches, like “data lakes”, have collected the data but failed to organize it effectively too.
The Customer Data Platform is an alternative approach that has had great success at pioneering companies.
A CDP puts marketing in direct control of the data unification project, helping to ensure it is focused directly on marketing requirements. CDPs apply specialized technologies and pre-built processes that are tailored precisely to meet marketing data needs.
This allows a faster, more efficient solution than general purpose technologies that try to solve many problems at once.
Finally, the unicorn has been born!