How Successful Have CDPs Been in Delivering Business Value? Treasure Data Report Shares New Findings

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The State of CDP report by Advertising Perceptions and Treasure Data reveals how businesses are using CDPs.

Treasure Data and Advertiser Perceptions have released a new report on the state of CDPs across businesses. Over the past two years, customer data platforms (CDPs) have emerged as a hot topic in enterprise C-suites and the top leadership ranks of corporate marketing departments. Enterprise leaders are intently eyeing CDPs as a critical marketing technology for audience-centric, cross-platform, omnichannel marketing.

This trend toward CDPs is an outgrowth of brands’ long-standing attempts to integrate and leverage older technology such as data management platforms (DMPs), customer relationship management systems (CRMs), data warehouses, and marketing clouds. However, the promise of CDPs is to go far beyond mere data integration and enable customer journey activation, creative personalization, and privacy compliance. But what have the returns been like? Are CDPs delivering on these promises?

Decoding CDP Usage

At a basic level, CDPs were made to unify customer data. However, the report revealed that the use-cases for CDP were much more diverse than a single requirement.  Around 60% of the marketers used CDPs to map out customer journeys and personalize digital campaigns. The study also revealed that nearly as many used them to create audience segments and report on campaign performance, including ROI. And while digital campaign personalization is a lead use case, website personalization is much less so. This presents an area of opportunity for CDPs, as marketers seek to drive deeper audience engagement with their online brand experiences. It may also illuminate some of the continued complexities associated with integrating CDP data with content management systems and/or applying customer profiles and customer journey insights to other systems in a consistent manner.

While 3 in 5 marketers rely on their CDPs to unify customer profiles and map customer journeys, the current state of data unification suggests many touchpoints marketers have yet to pull into their CDPs for a full 360-degree, unified customer view.

A majority of organizations have already integrated common sources of first-party data, such as their CRM, transactional data, and website traffic data, into their CDP. However, less than half have integrated product usage, third-party, social media, cookie, app, and offline data into their CDPs.

Roughly a quarter of marketers anticipate integrating all of these data types with their CDPs (except offline data) by Q4 2021. This points to even greater potential for marketers’ success in 2021, but it also highlights the nascency of truly building a golden customer record. The market needs CDPs that make data integration and integration with other systems seamless.

The study found that when comparing “very satisfied” CDP users versus “satisfied,” the level of data integration for “very satisfied” was much advanced.

Conclusion

For data-driven, customer-centric organizations, the CDP has quickly become a critical component of their martech stack. But marketers are not just turning to CDPs to manage multiple customer-specific use-cases; CDPs are making marketers and their organizations more successful, efficient, and privacy-compliant.

While most marketers experience significant benefits today, many are just beginning to integrate enough data to see their customers’ journeys clearly. With CDPs’ help, marketers strive to create personalized interactions and drive engaging brand experiences while achieving efficiency. To reach their full potential, marketers should explore unifying data from a wider variety of sources such as customer support data, product usage, and offline data. Additionally, marketers can gain better insights and efficacy by utilizing sophisticated analytics capabilities such as predictive modeling, next best action, and customer lifetime value analysis.

As marketers continue to integrate data across platforms and sources and leverage robust, actionable analytics, CDPs should bring them even greater competitive advantages in 2021 and beyond.