How to build customer profiles using a CDP

Implementing a customer data platform (CDP) can be complicated for any size organization. It is important to keep track of the key parts of the process at each point in the process.

At the heart of the CDP is the data, so issues of data quality and data sources need to be addressed. But in the bigger picture, the organization must also consider who is using the CDP and why.

MarTech recently gathered a number of experts to discuss the key parts of the CDP design and implementation process.

Dig deeper: Prepare the CDP implementation using a use case template

Two important ingredients for CDPs

“I like to think of it like a sandwich, where the customer data is in the middle of the sandwich, but the filling isn’t possible without the outer pieces [holding it together]said Gavin Estey, technical director of Appnovation. “You’ll just have a mess on your hands.”

“The two ‘bread pieces’ are the recording and the data processing [on one end] and the activation [on the other end],” he added.

These two parts correspond to the two main questions around building a customer profile. First, how does the data get into the profile? Second, what is done with the data to make it actionable and useful?

“If you have the best customer database in the world and you can’t do anything with it that’s really valuable to your business, it’s not helping you,” Estey said.

Understand who will be using the CDP

Another key factor is understanding the team that will be using it. In order for marketers to get the most out of CDO, it should be implemented with these purposes in mind.

“The marketing-centric approach is more focused on activation,” said Brian Mitterko, Lead Consultant, CDPs, Bounteous. “What does the customer journey look like? How do we activate this data and how do we orchestrate it? How do we report results?”

Starting with a clear understanding of what the CDP aims to achieve for the organization is as important as whether you should build or buy [a CDP].”

Don’t forget your customers

When a company decides to implement a new technology, it can’t help but think about bigger business challenges. In times of recession or at the height of the pandemic in 2020, businesses should embrace their most loyal customers.

When adopting and implementing a CDP, it’s also important to focus on loyal customers.

“What programs can I invest in to keep my most lost customers with me during these turbulent times?” asks Alex Dal Canto, senior director of product marketing, Acquia. “What will help me maintain share of wallet within this customer base and ultimately build strong advocates that will help us come out of this uncertainty even stronger as everyone moves to the next phase of growth?”

He added, “A CDP is really critical to understanding who these most loyal customers are and how you can best reach out to them and understand their current needs.”

“Customer needs are just as important as the needs of the organization implementing the CDP,” he added. “Keep both of these in mind as key elements as you build and implement a CDP for your team.”

You can watch the rest of the How to Decide to Build or Buy: A Customer Data Checklist discussion here.

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