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What is a customer data platform (CDP) and why do marketers need one?

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What is a customer data platform (CDP) and why do marketers need one?


A customer data platform, usually called a CDP, is a marketer-managed system designed to collect customer data from all sources, normalize it and build unique, unified profiles of each individual customer. The result is a persistent, unified customer database that shares data with other marketing technology systems.

The idea of a single view of the customer has been on marketers’ wish lists for years. But disruption caused by the global COVID-19 pandemic has raised interest in precisely the types of solutions that CDPs deliver, which includes that single-view of the customer. With pandemic concerns spurring the movement of customer interactions – both B2B and B2C – to digital channels, marketers are increasingly interested in technologies that collect data from those interactions, unify them, deliver insights and enable campaign orchestration.

CDPs enable marketers to create a single view of the customer by gathering data from software deployed
throughout the organization. High expectations, along with the proliferation of possible customer touchpoints, make cross-device IDs and identity resolution — the ability to consolidate and normalize disparate sets of data collected across multiple touchpoints into an individual profile that represents the customer or prospect — critical for helping marketers, sales and service professionals deliver the ideal total customer experience. CDPs offer this consolidation and normalization and also make the data profiles freely available to other systems that deliver campaigns, webpages and other interactions.



What is a customer data platform (CDPs)?

As the marketer appetite for CDPs has grown, existing companies with various backgrounds — from tag management to analytics to data management — have seen the opportunity and refashioned themselves in the CDP mold. Meanwhile, others have started up with the CDP category in mind from the start, and some well-established players have responded to market pressure and developed a CDP capability.

A CDP is not a CRM, DMP or marketing automation platform. A CDP provides a unified, persistent customer database that provides data transparency and granularity at the known, individual level. A CDP can identify customers from many different data sources by stitching together information under a unique, individual identifier. The CDP then stores its own copy of the data.

CDPs also give marketers control over customer data collection, segmentation and orchestration through native (out-of-the-box) integration that minimizes the need for IT or developer involvement. And lastly, CDPs offers data integration of both known and anonymous customer data with any external source or platform, including CRM, point of sale (POS), mobile, transactional, website, email and marketing automation.

We support the CDP Institute’s definition of a “RealCDP,” which requires it be able to do the following five things:

  • Ingest data from any source.
  • Capture full detail of ingested data.
  • Store ingested data indefinitely (subject to privacy constraints).
  • Create unified profiles of identified individuals.
  • Share data with any system that needs it.

Virtually all of the CDP vendors that meet that criteria provide the following core capabilities:

  • Data management (collect, normalize and unify customer data in a persistent database),
    often after IDs have been matched by other systems.
  • Features designed for use by the marketing organization and other departments, without the
    aid of IT or data science resources. (Though some functions, like building connections to other
    platforms and performing sophisticated data modeling, still require additional resources.)
  • Connections to and from all external systems on a vendor-neutral basis.
  • Structured and unstructured data management.
  • Online and offline data management.

CDP vendors differentiate by offering more advanced capabilities that include, but are not limited to, the following:

  • Native identity resolution to stitch customer data snippets from disparate sources.
  • The number and breadth of robust pre-built connectors to other martech systems. The near-universal availability of APIs means connections are always possible (with more or less developer involvement), but offering pre-built, tested integrations adds value.
  • User interface (UI). The vendors differ in the user-friendliness of their interfaces and the methods people use to do things like create segments, view profiles, etc.
  • Analytics, including those powered by machine learning and artificial intelligence, that surface insights, enable journey mapping, audience segmentation and predictive modeling.
  • Orchestration for personalized messaging, dynamic interactions and product/content recommendations.
  • Compliance with vertical industry and international data regulations.

Now, let’s look at the key considerations involved in choosing a CDP.

Customer data management

Data collection and maintenance is a core CDP customer data management platform function. All CDPs provide a central database that collects and integrates personally identifiable customer data across the enterprise.cFrom there, however, CDPs vary in their abilities to manage the following:

  • Data ingestion capabilities: CDPs use various mechanisms to ingest the data that goes into the unified customer profile — mobile SDKs, APIs, Webhooks or built-in connectors to other platforms. Identity resolution: The platform “stitches” together customer data points, such as email addresses, phone numbers, first-party cookies and purchase data, from various channels matching them to create a single customer profile.
  • Identity resolution: The platform “stitches” together customer data points, such as email addresses, phone numbers, first-party cookies and purchase data, from various channels matching them to create a single customer profile. Some players partner with other providers for this capability, while others have their own systems.
  • Online/offline data: The platform leverages identity resolution or an identity graph to stitch together behaviors in order to create a unified profile.
  • Data hygiene: The platform enables users to clean and standardize customer records.
  • Structured/unstructured data: CDPs differ in their capabilities to manage unstructured data (i.e., social media feeds, product photos, barcodes), which may comprise up to 80% of all data by 2025, according to IDG.

The importance of each of these data management capabilities will depend on a particular organization’s business goals, and whether it has a significant mobile presence, direct mail budget or brick-and-mortar stores and/or agents.

Analytics

CDP vendors offer data analytics capabilities that can do some or all of the following: allow marketing end-users to define and create customer segments, track customers across channels and glean insights into customer interest and intent from customer behavior and trends.

The functionality provided can include predictive models, revenue attribution and journey mapping. To one extent or another, many of these capabilities may utilize machine learning or artificial intelligence to surface insights about audiences and proactively offer suggestions about the best next step to move a prospect through their purchase journey.

Orchestration

A select group of CDPs provide campaign management and customer journey orchestration features that enable personalized messaging, dynamic web and email content recommendations, as well as campaigns that trigger targeted ads across multiple channels.

The customer data platform often automates the distribution of marketer-created customer segments on a user-defined schedule to external martech systems such as marketing automation platforms, email service providers (ESPs), or web content management systems for campaign execution.

For example, the CDP could deliver targeted content to a web visitor during a live interaction. To do this, the CDP must accept input about visitor behavior from the customer-facing system, find the customer profile within its database, select the appropriate content and send the results back to the customer-facing system. A customer data platform may also facilitate digital advertising through an audience API that sends customer lists from the CDP to systems (i.e., DMP, DSP, ad exchange) that will use them as advertising audiences.

Data regulation compliance

CDP vendors vary in the support they provide for compliance with the wide range of vertical market and international regulations that safeguard customer data privacy. Some build compliance features into their platforms, while others rely on outside systems. The European Union’s GDPR was implemented in May 2018 and impacts all U.S. marketers and data firms handling European data or serving customers in the EU. Brands marketing to Canadian consumers through email must also comply with the country’s CASL (Canada Anti-Spam
Legislation). Meanwhile, the California Consumer Privacy Act (CCPA) went into effect in January of 2020.

Marketers in the highly regulated healthcare market must follow HIPAA and HITECH regulations. In addition, all organizations that accept, process, store or transmit credit card information must maintain a secure environment that meets Payment Card Industry Data Security Standards (PCI DSS), as well.

Third-party systems integration

CDPs streamline integration of customer data by providing out-of-the-box (or native) connectors for many martech systems, including CRMs, DMPs, marketing automation platforms, DSPs, and campaign analytics and testing tools. Most marketing organizations have assembled a marketing stack that contains many of these types of platforms. But integrating the data that resides in the martech ecosystem is a huge challenge — one that costs U.S. brands millions of dollars annually. The majority of CDPs profiled in this report also provide at least a basic API to enable custom integrations.


Explore platform capabilities from vendors like Blueconic, Tealium, Treasure Data and more in the full MarTech Intelligence Report on customer data platforms.

Click here to download!


What are the benefits of using a CDP?

Marketing executives today are in charge of dozens of martech applications to manage, analyze and act on a growing volume of first-party customer data. But despite increasing efficiency, the emerging martech ecosystem has created problems with data redundancy, accuracy and integration.

Automating customer data accuracy and integration through a CDP can provide numerous benefits to marketers and to other functions across the enterprise.

These include the following:

Expanded enterprise collaboration. A CDP fosters cooperation among siloed groups because it gathers data from throughout the enterprise and supports customer interactions across many touchpoints. The unification of data allows enterprises to see how strategies for audience, customer experience and execution all fit together – and enables audience portability to ensure a more consistent, informed customer experience.

Improved data accessibility. A CDP is a centralized hub that collects and houses customer data from every corner of the enterprise. Pieces of data are normalized and stitched together to build unique, unified profiles of each individual customer. The result is a persistent customer database whose main purpose is to gather and share data more easily and efficiently across the organization

Streamlined systems integration. A CDP unifies data systems across the enterprise, from marketing and customer service, to call centers and payment systems. By creating a single “system of record” for first-party customer data, data redundancies and errors can be minimized, and data can flow more quickly into — and out of — marketing automation platforms, email service providers (ESPs), CRMs and other martech systems.

Increased marketing efficiency. A CDP unifies individual data with unique IDs that create more robust customer records. Many manual tasks are also automated by the CDP, allowing marketers to focus on the creative and analytical tasks they are trained for. The result is more accurate modeling, targeting and personalization in marketing campaigns, and more relevant customer experiences with the brand across channels.

Faster marketing velocity. In many cases, CDPs are “owned” by marketing, minimizing the need for IT or developer intervention to collect, analyze and act upon data. With control in marketers’ hands, the time to segment and build audiences, execute campaigns and analyze results significantly decreases. That said, engineers may still be needed to perform deep data analysis and facilitate integrations. This is especially true as CDPs extend beyond marketing and into sales and service functions.

Stronger regulatory compliance. A CDP creates greater internal control over customer data, streamlining data governance to comply with the many regulations now impacting brands worldwide. Marketers in the healthcare industry must comply with both HIPAA and HITECH regulations. Businesses that handle European data or serve customers in the EU must also comply with GDPR and those dealing with Californians must deal with CCPA
(California Consumer Privacy Act). The majority of CDP vendors are both ISO and SOC certified for best practices in handling personally identifiable information (PII).


About The Author

Pamela Parker is Research Director at Third Door Media’s Content Studio, where she produces MarTech Intelligence Reports and other in-depth content for digital marketers in conjunction with Search Engine Land and MarTech. Prior to taking on this role at TDM, she served as Content Manager, Senior Editor and Executive Features Editor. Parker is a well-respected authority on digital marketing, having reported and written on the subject since its beginning. She’s a former managing editor of ClickZ and has also worked on the business side helping independent publishers monetize their sites at Federated Media Publishing. Parker earned a master’s degree in journalism from Columbia University.



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Advocate | DigitalMarketer

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Advocate | DigitalMarketer

Happy customers love to share their experience, but sometimes they need some encouragement to do so. The cool thing is, once they do, they become even more loyal to your brand.

So, at this stage of the Customer Value Journey, ask people to share their positive experience with your brand by writing a review or sharing a social media post.

Once you get to stage seven, the Customer Value Journey is going to get a whole lot easier for you. This stage is all about learning your customer’s experience, and building up your testimonial database. 

The most important part of this step is asking these four questions. 

What Was Your Life Like Before Finding Our Solutions? What Challenges Were You Facing That Caused You to Consider Us? 

These questions are great not only because it gives you some really good stories, but because it gives you some insight on how you can provide similar prospects with that AHA moment. Understanding the average day of your clients is important in reflecting on your Customer Value Journey, and helps you understand what really set you apart from your competitors.

What Key Features Had the Biggest and/or Fastest Impact?

Not only is this going to get you to really specific stories, you will understand the specific things you provided that gave the biggest impact. The answers to these questions will not only give you great insight and testimonials, it will provide you with ideas for new lead magnets. This part is a new Entry Point Offer goldmine! 

What Has Been the Impact or Results in Your Life or Business Since Using Our Product or Service? 

This is a fairly broad question, and that’s why we put it after the others. You will have already gotten all of the specifics out of the way with #1 & #2. But when you ask this question, this is where you get the most valuable stories. You can use this part as testimonials, as an order form, as a sales page, this part is testimonial gold. 

If You Were Asked to Justify this Purchase to Your Boss or a Friend, What Would You Say? 

This is our favorite question by far. If you had to go back in time and justify this purchase, what would you say? I promise you what we’re going to find is a lot of great ideas for the jobs that your product or service has done. You’ll get a lot of great ideas for your core message canvas. This question is about backfilling all of the assets that you may not have. Here you’re going directly to the customer who are already happy, and using their justifications to help you sell to new customers. 

Hopefully you now understand just how valuable the Advocate stage could be, as well as the key questions you need to ask to get your customers talking. Here’s how it works for our example companies.

When it comes to fashion we all love to show off our outfits. So a good example for Hazel & Hems would be to have customers write reviews for a discount code or points towards their next purchase. 

Better yet, follow up with the customers to ask them to share and tag themselves wearing the items in a social media post and providing them with something valuable as a reward.

For Cyrus & Clark Media, hopping on zoom meetings or a streaming service for live talks about them and their business could generate valuable awareness for them, and a live case study for the agency. They can use the questions Ryan provided during this lesson to conduct the interview.



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Drive Conversions and Generate Engagement With Instacart Promotions

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Drive Conversions and Generate Engagement With Instacart Promotions

Through deals and coupons, Instacart has saved consumers more than $700 million in 2022. As we dive into 2023, the leading grocery technology company in North America has big plans to help consumers save even more while also helping CPGs generate sales. Instacart recently announced an advertising solution that helps both sellers and consumers called Instacart Promotions. This exciting feature is designed to help drive conversions, boost sales, and generate overall engagement on the app.

Interested in this feature and how it can help your business on Instacart? Read on as we dive into everything you need to know about this ad solution including benefits, how to get started, and more.

 

What are Instacart Promotions?

 

Instacart Promotions is an advertising feature that’s now available to all brand partners, including emerging brands, within their open beta program. Promotions give CPGs the opportunity to offer new deal structures, promotions, and incentives with Instacart Ad campaigns. With this feature in place, consumers will have access to more promotions, coupons, and deals that are tailored to them within the Instacart Marketplace.

“With the launch of our new Instacart Promotions, all of our brand partners now have the ability to set up coupons and promotions that can drive meaningful business results while also passing on more savings opportunities to consumers. We’re proud to continue expanding our portfolio with additional self-service capabilities, ad formats that drive results, and measurement that brands need to understand the true impact of their campaigns on Instacart.”

 

– Ali Miller, VP of Ads Product at Instacart

 

Source: Instacart

 

How Do Instacart Promotions Work?

 

Promotions, now available in Ads Manager, gives consumers the ability to discover more promotions and savings opportunities within the Instacart app. These promotions now show up directly on product item cards before checkout for easy accessibility. Promotions allow advertisers to customize their campaigns to sync with their goals and objectives whether that be driving sales, building baskets, or boosting trials.

Instacart shared a recent example of a brand successfully utilizing Promotions… 

Athletic Brewing, General Mills, Sola Company, and Wells Enterprises (maker of Halo Top) are strengthening campaign performance by pairing Instacart Promotions with ad formats such as Sponsored Product and Display. Instacart Promotions include two new flexible and customizable structures: Coupons (“buy X units, save $Y”) and Stock Up & Save (“Spend $X, Save $Y”). 

According to Instacart, in the coming months, the company “will work to further enhance the new offering with new deal structures such as Free Gifts and Buy One, Get One (“BOGO”). The new deal structures will help brand partners run “Free Sample” programs that can win new customers and serve personalized discounts for different customer segments, such as “new to brand” and “new to category.”  

 

Example of Instacart Promotions

Source: Instacart

 

Instacart Promotions Benefits

 

Deliver Value and Savings to Consumers

 

With Instacart Promotions, you have the opportunity to deliver value and savings that will have consumers coming back for more. With this savings feature, your brand can stand out among the competition and offer a variety of deals to shoppers ie: “Buy X units, Save $Y”.

 

Hot tip: Ensure you are selecting products for your promotion that are well-stocked and widely available.  

 

Tailor Your Campaigns to Specific Objectives

 

With a variety of savings options available, your brand can structure deals to fit specific business goals and objectives. 

 

Hot tip: If you’re looking to drive visibility and awareness, try pairing promotions with Sponsored Product campaigns. 

 

Access Real-Time Performance Insights 

 

The Promotions beta program is live and can be accessed within Instacart Ads Manager. Within Ads Manager, advertisers can access real-time insights to maximize performance and adjust campaigns as needed.

 

Hot tip: Make sure your budget matches your discount and objectives.

 

“As an advertiser, Instacart’s unique offering to self-manage promotions is so exciting! Historically, making adjustments to offer values and other promotion parameters was a more manual process, but now we’ll be able to easily make optimizations in real-time based on redemption performance.”

Emily Choate

Emily Choate, Senior Specialist, Marketplace Search at Tinuiti

 

Interested in Instacart Promotions?

 

With Instacart Promotions, you have the opportunity to reach new customers, build bigger baskets, and drive sales. Interested in testing out the beta program or looking to get started with advertising on the app? Drop us a line – we’d love to help elevate your CPG brand on Instacart.

 

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(Re)Introducing your favorite Optimizely products!

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(Re)Introducing your favorite Optimizely products!



It’s important to us that you, our valued customers and partners, can identify with the tools you use daily.  

In that pursuit, Optimizely set out to simplify the way we talk about our product suite. That starts, first and foremost, with the words we use to refer to the technology.  

So, we’ve taken a hard look at everything in our portfolio, and are thrilled to introduce new names we believe are more practical, more consistent, and better representative of the technology we all know and love.  

You may have seen some of these names initially at Opticon 2022 as well as on our website. In the spirit of transparency, the team here at Optimizely wanted to make sure you had full visibility into the complete list of new names, as well as understand the context (and rationale) behind the changes. 

So, without further ado… 

Which names changed?  

Some, but not all. For your ongoing reference, below is a complete list of Optimizely products, with previous terminology you may be familiar with in the first column, and (if applicable) the new name in the second column.  

Used to be… 

Is now (or is still)… 

Meaning… 

DXP 

Optimizely Digital Experience Platform 

A fully-composable solution designed to support the orchestration, monetization, and experimentation of any type of digital experience — all from a single, open and extensible platform. 

Content Cloud 

Optimizely Content Management System 

A best-in-class system for building dynamic websites and helping digital teams deliver rich, secure and personalized experiences. 

Welcome 

Optimizely Content Marketing Platform 

An industry-leading and user-friendly platform helping marketing teams plan campaigns, collaborate on tasks, and author content. 

DAM 

Optimizely Digital Asset Management 

A modern storage tool helping teams of any size manage, track, and repurpose marketing and brand assets (with support for all file types). 

Content Recs 

Optimizely Content Recommendations 

AI-powered and real-time recommendations to serve the unique interests of each visitor and personalize every experience. 

B2B Commerce 

Optimizely Configured Commerce 

A templatized and easy-to-deploy platform designed to help manufacturers and distributors drive efficiency, increase revenue and create easy buying experiences that retain customers. 

Commerce Cloud 

Optimizely Customized Commerce 

A complete platform for digital commerce and content management to build dynamic experiences that accelerate revenue and keep customers coming back for more. 

PIM 

Optimizely Product Information Management 

A dedicated tool to help you set up your product inventory and manage catalogs of any size or scale. 

Product Recs 

Optimizely Product Recommendations 

Machine-learning algorithms optimized for commerce to deliver personalized product recommendations in real-time. 

Web 

Optimizely Web Experimentation 

An industry-leading experimentation tool allowing you to run A/B and multi-variant tests on any channel or device with an internet connection. 

Full Stack 

Optimizely Feature Experimentation 

A comprehensive experimentation platform allowing you to manage features, deploy safer tests, and roll out new releases – all in one place. 

Personalization 

Optimizely Personalization 

An add-on to core experimentation products, allowing teams to create/segment audiences based on past behavior and deliver more relevant experiences. 

Program Management 

Optimizely Program Management 

An add-on to core experimentation products, allowing teams to manage the end-to-end lifecycle of an experiment. 

ODP 

Optimizely Data Platform 

A centralized hub to harmonize data across your digital experience tools, providing one-click integrations, AI-assisted guidance for campaigns, and unified customer profiles. 

 

So, why the change?  

 It boils down to three guiding principles:  

  1. Uniformity: Create a naming convention that can be applied across the board, for all products, to drive consistency 
  2. Simplicity: Use terms that are both practical and concise, ensuring the names are something that everyone can understand and identify with  
  3. Completeness: Develop a framework that showcases the full and complimentary nature of all the products and solutions within the Optimizely suite 

 As the Optimizely portfolio comes together as a complete, unified platform, it’s important that our names reflect this, as well as support our 3 key solutions (i.e. orchestrate amazing content experiences, monetize every digital experience, and experiment across all touchpoints).  

Other questions? We’ve got you covered. 

Q: Why have you made these product name changes? 

    • We wanted to simplify how we talk about our portfolio. The renaming applies a naming convention that is both practical and concise.  

 

Q: Do the new product name changes affect the products I own? 

    • No, there is no impact to product functionality or capabilities.  

 

Q: Do the new product name changes affect who is my Customer Success Manager or Account Manager?  

    • No, there are no changes to your Customer Success Manager or Account Manager. 

 

Q: Do the new product name changes affect the ownership of the company?  

    • No, ownership of the company has not changed. We have only made changes to the Product Names. 

 

Q: Have any contact details changed that I need to be aware of?  

    • Only contact details for former Welcome customers has changed. These are the new contact details you should be aware of: Optimizely, Inc.| 119 5th Ave | 7th Floor | New York, NY 10003 USA. Phone: +1 603 594 0249 | www.optimizely.com 

 

Q: Where can I send any follow up questions I might have?  

    • If you have any questions about the Product Names, please contact your Customer Success Manager or Account Manager.  


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