Investing in New Technology: The Power of a Customer Data Platform
As the growth industry continues to evolve, companies are feeling increased pressure to invest in new technology. Questions about budgeting and usability tend to come up when assessing new tech options, but staying on top of the latest offerings is essential for brands who want to drive long-term, sustainable growth. And there are few things more important for this than an incredible Customer Data Platform (CDP).
Today, tools in the growth stack have advanced to a point where marketers can use real-time data to target users across multiple platforms with tailor-made, bespoke experiences. The days of revamping an old system or implementing a quick fix with short-term results are over. Sticking to your O.G. tech stack and its mediocre solutions may save you money now, but it limits what your product and marketing teams can do. Investing in new and improved tools– like a CDP– can unlock the full potential of your growth strategy.
What is a CDP?
In short, a CDP collects cross-channel customer data on a single platform to provide marketers with a holistic (read: more accurate) customer profile. As Lauren said in one of her recent blog posts, a CDP is the heart of your growth stack; it’s the data-led edge that takes your marketing initiatives to the next level.
The benefits of a CDP are nearly as numerous as its possible integrations. Best-in-class CDP partners we work with, like mParticle and Segment, leverage a single set of tracking tags, allowing your technology stack to scale seamlessly. Imagine being able to implement a brand new tool with full tracking coverage across all of your platforms in only a few hours.
Having a system that produces data few team members can interpret creates operational bottlenecks that can snowball into larger issues down the road. A CDP takes existing historical data and makes it accessible across multiple teams within the organization. Implementing a self-serving system, significantly reduces your marketing team’s dependence on your engineering team, giving marketers more time to develop meaningful and effective campaigns. Below is an example of how the growth stack looked before and after we integrated a CDP for one of our partners:
Inaccurate, inconsistent, and generally unreliable data is basically useless. If your marketing team can’t trust the numbers when building out a strategy, your campaign is dead before it starts. A CDP generates data that creates a comprehensive view of your users and uses customers’ data history to help predict a future customer journey, so your marketing work is based on actual fact.
A single platform with scalability means marketers can easily integrate a CDP into existing systems, connect to your historical data, layer in third-party data, and collect new customer data all at the same time. This process enables marketers to strategically define audience segments and seamlessly sync these segments in real-time across virtually any platform they want. As the customer continues to interact with a brand across multiple channels, the system is learning and creating a more robust customer profile that your marketing team can use to create intelligent personalized campaigns.
While adding a CDP will bring along an additional cost, investing in new technology can mean long-term productivity and growth. A solution that allows you to easily manage your customer data through a single platform will not only save your engineering and marketing teams time, it will also save you money.
Data doesn’t just showcase ROI, data drives ROI. With a CDP, you gain significantly more insight by integrating 1st party data and 3rd party data, enabling marketers to build unique customer segments and target them with relevant content. You need to be able to analyze the numbers to make the numbers. If you’re not spending the time and resources to thoughtfully optimize your tech, you might find yourself in a never-ending game of catch up.
Still hesitant about investing in new technology? Get in touch with the Prolific Growth team to talk more about investing in the right tools or about any Growth projects you may have. You can read more articles related to this topic here.