What Today’s CMO Should Look for in a CDP

Jan 15, 2019

What Today’s CMO Should Look for in a CDP

Data is at the core of any effective marketing strategy. As a wealth of customer data becomes increasingly available, marketers now have the ability to make informed decisions for effective personalization that boosts customer engagement. Last week, we laid out the characteristics that are essential to the success of the modern CMO; in short, today’s CMO must understand how to leverage technology to make the most of their customer data.

Many marketing leaders are looking to implement customer data platforms (CDPs), a tool that unifies data from disparate sources and provides a consolidated view of their customers. CDPs can add significant value to your digital marketing team, but different CDPs have varying capabilities and product offerings. It’s important to know what factors to look for when choosing the right CDP for you.

CDP Fundamentals

  1. Data Unification: Regardless of extraneous bells and whistles, the primary function of a CDP is to manage your data. Instead of implementing a number of different data management systems, marketers can leverage a single CDP to aggregate large amounts of data from varying sources, including your CRM, email and website marketing platforms, ad servers, and other platforms in your martech stack. For a truly seamless single-platform approach, CMOs should look for a CDP that easily integrates with their existing technology to provide a unified, comprehensive view of their customers.
  2. Customer Segmentation: A strong CDP not only unifies data, but also uses machine learning to identify actionable insights. Once marketers have access to individual customer profiles, they can leverage their CDP to build audience segments based on characteristics such as purchase behavior, location, and device preferences. Today’s forward-thinking CMO should look for a CDP that can build custom audience segments for more precise targeting, and can also use these segments to identify new customers with similar attributes.
  3. Omnichannel Activation: CMOs know that success isn’t determined by how much data marketers have, but by how much they can do with that data. Marketers should look for a CDP that leverages a wealth of customer data to deliver effectively personalized interactions that boost customer engagement. Even better, these interactions should be easily deployed across each customer’s preferred device or channel.
  4. Reporting and Attribution: Marketing efforts don’t end at customer engagement, or even at conversion; after the customer has completed a desired action, marketers need to understand which specific interaction led to that action. CMOs should look for a CDP that can attribute results to specific channels, so the team can analyze campaign performance and adjust their strategy accordingly. The CDP should also have a reporting option to provide the organization with more in-depth insights.

In today’s digital marketing ecosystem, it’s essential for CMOs to understand the different factors in selecting the right customer data platform for the organization’s needs. CDPs vary in capabilities, and any new technology you implement should make your workflow easier, not slow it down. Ultimately, the right CDP will enable your team to work more efficiently and more effectively.

IgnitionOne provides all of the CDP capabilities above, and so much more—empowering marketers to find and engage their most valuable customers in real-time with personalized messaging that drives omnichannel engagement. Get a free demo, or reach out to learn more! 

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