If you’re reading this, it’s because you want to do better. And, since we appreciate your visit to our blog, we’re always focusing on writing things that would help you improve.
When it comes to our main area of expertise – CRM Marketing – there’s one thing that’s always true: improvement goes hand in hand with smarts. The smarter your Relationship Marketing is, the better it’ll perform.
These “smarts” in CRM Marketing have everything to do with data treatment, segmentation, personalization, and to trusting AI do the journey-mapping.
But, at the core of it all, to make all these things even possible – marketers can’t just use any CDP. Wise marketers know that to consolidate data, you need infrastructure which also powers the ingestion, unification, access, sharing, and activation of your organization’s customer data.
But don’t just take our word for it. Among surveyed Martech leaders with a CDP, respondents with only a marketing cloud CDP reported the lowest levels of overall Martech stack effectiveness – 62% compared to 96% for a Smart hub.
Marketers who don’t use CDPs with a brain are less effective in their everyday tasks as they have too much data that is hard to make sense of – and they really don’t need it.
79% of Marketers agree that they have the tools to aggregate and segment data, but 63% agree that using data to drive digital marketing execution is a moderate or significant challenge.
Let’s break it down into five tidbits.
#1- Don’t build your own CDP unless it’ll be your core business
Deploying Smart automation is difficult. It requires two challenging tasks: maintaining rich, accurate, and current customer data and making the right decisions when using that data. Not every brand should dedicate their entire product or service unless it is just that.
#2 – Most marketers hear CDP and think segment-first
There’s a lot more to a CDP than segmentation – like data, insights, orchestration, for instance.
In fact, some CDPs are purpose-built and designed to integrate with existing systems, technologies, and workflows. Insight-driven and actionable CDPs that allow you to execute the right campaigns with proven analytics – all in one system.
#3 – Using more than one CDP isn’t cost-effective
There is a lot of confusion as to what a CDP is. Marketing and IT might purchase separate CDPs for different reasons. While enterprise brands have multiple CDPs from different levels of capabilities stacks. What’s more is that marketers with a CDP deploy 2.3 CDP vendors, on average – making it all that much more expensive.
# 4 – Most CDPs can’t help users drive marketing processes efficiently
Like the 80/20 Rule where 80% of effects arise from 20% of the causes – with a CDP, 80% of the value you’re getting comes from unifying 20% of the data. Without a Smart CDP, you have so many data sources coming from so many different places – so the extra mile you would need to go to unify it all is not worth it to get the rest of the 20%.
In other words, with just some of the data, you’re able to do so much more. Smart CDPs curate your data, so you don’t need a “true” 360-degree view of your customer with ALL THE DATA YOU CAN PUT YOUR HANDS ON. You just need to know what’s important from the data to gain the right insights.
# 5 – Marketers who use Smart CDPs are happier
Oh, have we said that? Hm. Well, marketing leaders with smart CDP hubs are most likely to perceive their overall marketing tech stack to be highly effective. On the other hand, Smart CDPs come with many capabilities that aren’t used. That’s why removing silos and barriers is challenging for marketers to execute and act on the data.
But there is a solution – a tool that offers brands dozens of out-of-the-box data connectors for rapid batch processing of massive amounts of data from disparate systems. One that comes with smart automation that provides customers with meaningful interactions across all channels at scale.
A solution that is, basically, a CDP with a brain. Some call it “smart CDP”. We like to call it Optimove.
Rony Vexelman is Optimove’s VP of Marketing. Rony leads Optimove’s marketing strategy across regions and industries. Previously, Rony was Optimove's Director of Product Marketing leading product releases, customer marketing efforts and analyst relations. Rony holds a BA in Business Administration and Sociology from Tel Aviv University and an MBA from UCLA Anderson School of Management.
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