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MedTech Outlook | Wednesday, February 14, 2024
Customer data platforms play a pivotal role in consolidating customer data and are essential in the marketing technology stack.
FREMONT, CA: Customer data platforms (CDPs) are instrumental in unifying fragmented customer data sources and are becoming a pivotal part of the marketing technology stack. However, selecting the right CDP from the numerous vendors available is a challenge. To make an informed choice, you must understand common CDP challenges and what to consider when evaluating them.
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A key factor in selecting a CDP is its ability to scale in line with your organization's growth. Some CDPs are optimized for handling smaller datasets, and as your company expands or integrates more applications, this can lead to reduced processing speed. In such cases, your IT team might need to introduce additional storage and processing solutions, which can entail time-consuming customizations. This may result in missed opportunities for real-time data analysis.
To overcome these challenges, seek a CDP that can easily scale up or down without requiring significant changes to its data architecture. CDPs designed to support larger datasets typically offer more robust security and governance frameworks, ensuring compliance and data privacy requirements are met.
CDPs have various use cases, but some offer quicker time-to-value than others. Attempting to implement all use cases simultaneously or focusing on complex ones right away can make it challenging to demonstrate the value of the CDP early in the process. To ensure successful adoption, involve all stakeholders in the CDP purchase process, particularly non-technical teams who may not be directly involved in connecting data sources and target systems.
Non-technical team members must understand how the CDP works and how to utilize it effectively. Identifying all use cases at the outset is crucial, as they define the campaigns and activities reliant on CDP-derived data and insights. Involving non-technical teams before enhances their adoption of the CDP. For marketing teams and other non-technical users, providing access to features like next-best-action recommendations, market exploration, and upsell/cross-sell opportunities will illustrate the CDP's value.
Low code/no-code tools can accelerate adoption by enabling non-technical users to quickly create applications. These tools can integrate with the CDP while ensuring data security by restricting access based on permissions. An essential CDP capability is extracting data from source applications and storing it in the CDP's data repository, accommodating structured, unstructured, and semi-structured data formats. The CDP should seamlessly connect to various source systems, manage data ingestion, and adapt to changes in the source data structure without requiring adjustments in the CDP.
Some CDPs necessitate extensive manual effort and customization to connect with specific source systems, burdening IT with substantial work before realizing the CDP's potential. A preferable CDP offers out-of-the-box connectors for your primary source systems, ensuring seamless integration. It should also be schema-agnostic, capable of storing raw event-level data, thereby minimizing the need for CDP modifications when source data structures change.
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