In these modern times, in-depth knowledge of each customer is central to the activities of every company. Thanks to the development of customer data platforms (CDPs), the overwhelming task of profiling each customer is now seamless and simple. A customer data platform is a packaged software that collects and processes data to create a unified and useful profile of each customer. A CDP creates a golden record of each customer based on your company's first-party data – user data from the company website, CRM (customer relationship management) software, customer feedback, etc. This information can then be integrated into other systems and sources .
The benefits of a CDP system to a business, small or large, are many and essential to core business functions. When properly applied, a CDP will reduce decision-making time and help perfect the process. In addition, it provides a comprehensive insight into customer behavior. This information can then be used to improve the customer experience across all touchpoints.
There is no doubt that your business can benefit from CDP. The question now becomes: “which CDP?” You can choose from several CDPs, each with its advantages and disadvantages. Therefore, here are 6 important steps to help you choose the best CDP
PREPARING ORGANIZATION
Choosing the best CDP starts with making internal preparations. The key players are the heads of sales, marketing and customer support departments. Naturally, they benefit the most from this software. Meeting with all of them to assess their willingness to embrace a CDP over alternatives such as a Dates Management Platform (DMP). Discuss their department-level pain points and what they hope to get out of a CDP.
DEFINE YOUR GOAL
A CDP is a multi-purpose tool, so which of the many features does your business want to leverage the most? Streamline the feedback obtained from sales, marketing, customer support, and other relevant departments into one or two use cases. Is it your priority to create an omnichannel customer experience or perfect your customer personalization strategy? Is the main goal to extract data from the silo or sharpen marketing and advertising campaigns? Summarizing the objectives for the CDP should reduce the number of software vendors being considered. All you need to do is strike out options where the model focus deviates from your target.
CONSIDER TOOLS THAT ARE INTEGRATED
Connecting a CDP to the right tools is crucial to maximize functionality. marketing automation, CRM platforms and Mobile Software Development Kits (SDKs) are examples of tools that CDP can feed with data for final actions. Think back to your goal for the CDP and use that to determine what additional tools your business needs. Which of the software in question supports optimal integration of these tools?
RESEARCH THE SELLERS
You can now narrow down your list of potential suppliers to a few different options. Now it's time to thoroughly research the suppliers for more relevant information. Check track record and reviews from customers and experts. In addition, consider on-site and remote customer service. Estimate the total cost of the CDP, from purchase to maintenance costs. Then weigh that against your budget.
RESEARCH DATA SECURITY AND COMPLIANCE POLICIES
Customer data is undoubtedly sensitive, so you should inquire about how secure your data will be and how compliant the CDP is with the latest regulations. Therefore, for safety reasons, insist on ISO 27001 or SOC 2 certification from the software supplier. Likewise, your CDP must also comply with GDPR and CCPA regulations. Make sure the seller can help you with that.
ESTIMATE EXPECTED RETURN ON INVESTMENT (ROI)
While it would be very difficult to calculate your ROI accurately, it is possible to arrive at a realistic estimate. The potential ROI is a function of the revenue generated by the CDP, the savings in operational costs and time that the software enables, and the cost of setting up this data system. This should give you an approximate figure to include in your decision making process.
In short, choosing the best CDP for your business is not an easy process, and certainly not a quick one. However, your decision making process should be much easier by following these steps. We also provide consultancy services to guide you through the world of CDP solutions and its many providers.
