The better, faster, cheaper argument for CDPs
Brands use customer data platforms for different initiatives; here’s how they impact the customer experience.
The traditional way of selling enterprise software and cloud solutions was to focus on the IT value propositions like speed to insights and data crunching duration. I still remember a Google Cloud presentation where We can get answers in days that used to take months would be a convincing value proposition and would convert. It never really did. There were just so many other dependencies at the enterprise level.
And while IT sales grew with a focus on IT’s measurable benefits, they often fell short in bridging the greater business's needs, such as agility and business speed, which needs to pivot during the year. As both a consultant selling solutions and a product manager producing solutions, I found this gap causes much internal debate between departments on what’s working- internal disputes that can severely impact a project.
My recommendation is to focus on the solution value rather than the technological value when quantifying CDP returns. The shift to solution selling is supposed to be more customer-centric- discussing solutions around their business problems. The digital transformation within the enterprise is the same; the approach to explaining value extends to more than the CIO.
Sales values are often laid out in terms of Better, Faster, Cheaper. Tying KPIs and growth metrics to these sales values make things measurable from the beginning. As no CDPs are built the same because enterprise systems are configured differently, how easy it is to get these returns varies. But it helps to make sure you know what you are going after with every program and initiative. Here is a list of measurables by customer experience benefit.
CDPs makes CX BETTER:
Increases Revenue through more conversions
Increases Customer Satisfaction through better reviews and ratings
Drives Up NPS with better overall customer experience
Healthy Engagement Scores through better segmentation
CDPs makes money FASTER:
Increases Revenue per Customer by seeing with segments are willing to pay more.
Increased Sales Conversion Rates with the right value proposition at the right time
More targeted segments by getting meaningful segments and personas from your data
Increased Digital Interactions by using content and categories instead of cookies that will end soon.
CDPs make marketing CHEAPER:
Strong Return on Ad Spend (ROAS) with target ads towards your most valuable segments
Increased Sales Conversion Rates with more meaningful messaging and product positioning
Increased Digital Interactions with more personalized content and dynamic workflows
Higher Customer Retention Rates will always be cheaper than acquiring new customers.
Lower Customer Churn because you have a satisfied customer
Solutions unlocked from CDPs and how they benefit the greater business resonate with the modern enterprise marketer. The KPIs need to be about the solution value they bring. In the case of VIEWN’s, we strive to increase customer lifetime value for our brands with our AI-driven program and campaign tactics.
A marketing team can get an outstanding return from just the marketing data solution such as Customer Segmentation, Engagement Scores, and Customer Journeys Analytics from your common transactional and campaign data. These three solutions drive marketing personalization and are unlocked by new CDP technology that unifies the data from different apps and puts them into profiles to be sliced and diced into insights that drive customer experience- an exciting time to be a marketing technologist.
This article was originally posted on LinkedIn.