customer data platforms

Editor's Notes

• #3: About 2 years ago, started to see new type of system – combined marketing automation with building a database Was different vs. old situation where marketing databases were built separately or where b2b MA system had very limited data mgt Looked around and saw several types of systems that met this broad criteria; came up with name CDP and formal definition All three elements are important; combination is unique never had marketer control; never combined all data sources; never was built for other systems to use really exciting because building marketing database has traditionally been the biggest problem in customer mgt and is now more important than ever Old business problem: Right message to the right customer at the right time New barriers to solution: More channels, more data, more options Higher customer expectations Result: Need new technology, skills, processes 
• #4: - (data / decisions / delivery; each faces challenges
• #5: traditionally separate; - recent IAB/Winterberry Group study shows just over half (51.5%) of companies have 5-10 mar tech systems, average is 12.4 - study also found that integration isn’t highest priority when selecting tools, so separate systems are likely to stay
• #6: CDP unifies
• #7: value provided: simpler, unified data, easier integration, easier connections, avoid silos, avoid lock-in - implies some key things to look for e.g. API integration, identity association, ease of adding new data sources and data types
• #8: conclusion: CDPs are great; you should buy one; everything will be wonderful
• #9: but reality isn’t so simple…
• #10: - bigger context: - other ways to solve data problem than pure CDP: also Marketing Platform (data + decisions) and Integrated Suite (data + decisions + delivery) - advantages of Platforms and Suites are greater simplicity / less integration; disadvantages are lock-in and limited choice
• #11: - recent Winterberry study found disparate opinions: 30% prefer suite, 30% prefer best of breed; balance have no clear preference sample of 54 - interesting because traditionally, ‘suites win’ – possibly, the Cloud changes that (jury is out)
• #12: - world is still more complicated, because are multiple categories within each layer - some are partial solutions, some are complete CDP
• #13: most new funding happens on decision layer, because includes app that provides immediate value; is also least mature (many new ideas, no established competitors, low entry barriers) - data been more enterprise acquisition (hard to set up relationships, clear value, scale is critical because more coverage is better, so is entry barrier; defensive since don’t want to get blocked out by competitor acquisitions of data sources) - very few ‘pure’ CDPs because only big companies will pay separately; remember my original insight was campaigns + database, not database alone
• #14: - so might conclude should find an app, buy a CDP, and get started
• #15: - problem is, are multiple apps and last thing you want is multiple CDPs; - must connect each to each touchpoint at both data and decision levels - technical term for this is ‘hellacious mess’ - vendors know this and are expanding their footprints to support multiple apps e.g. different types of decisions. already support multiple channels. - selection criteria are a little clearer - look for immediate application but also look for multiple apps - means deeper dive into data provided, technical architecture, vendor resources (though easy to raise money) - may be good idea to look for industry specialization, so vendors don’t get overwhelmed with scope extension
• #16: so now have we solved the problem and is all well once more in CDP land. …well, maybe for now, but uneasy lies the head that wears the crown of lollipops.
• #17: well, maybe for now, but uneasy lies the head that wears the crown of lollipops. thing is, CDP is solution to today’s problem. and since most of us haven’t solved that, it’s really important. - but tomorrow’s problems will be different
• #18: Madtech – summary for more complicated set of trends Not just adtech+martech, but also AI, Internet of Things, contextual interactions Big differences Data layer External data from adtech plus identifiable individual from martech Thing data & place data, as well as people data; Implies most data will sit outside of firewall, because can’t quickly replicate ‘from data pooling to data polling’ Decision layer Realtime bidding from ad tech plus journey tracking and advanced attribution from martech Need attribution to bid properly; need journey tracking for attribution Need AI for bidding, but also for content creation ‘end of campaign flows as we know it’ Delivery layer Message opportunities (slots) in all channels, owned as well as paid Because customer attention is most valuable asset; may be more useful to someone else even in owned media Made possible because can value and bid, and because everyone has access to lots of information Implies exchanges for access; so, again, focus shifts from private to public ‘everything is biddable’ Bottom line Data and delivery layers will be largely open/public/shared; huge network/scale economies will favor enterprises Decision layer will remain private is where companies will distinguish / differentiate themselves and where are lower entry barriers to new tech will flourish
• #19: So, ultimately I want to leave you with two messages   CDPs are real. they’re here today and they do solve a huge problem. So if you don’t have the integrated customer database that you need to do all the cool martech things we’re talking about at this conference, take a close look at CDPs as an option.   but, nothing’s forever. Tomorrow’s madtech will look totally different from todays’ martech, and we really need to expand our imaginations to begin to envision that. Don’t let that stop you from taking advantage of solutions like CDPs, but don’t let your focus on today’s solutions blind you to what comes next.