There are decades where nothing happens; and there are weeks when decades happen, said Vladimir Ilyich Lenin.
And look what happened to ecommerce in the last 12 months. According to McKinsey research, 76% of consumers permanently changed their buying behaviors during the pandemic. Ecommerce has become more collaborative and consumer-oriented, with customer experience trends like direct-to-consumer and consumer-to-manufacturer dominating. Modern ecommerce is also more about pull strategy than push strategy. To properly execute, you need new customer data, not just more customer data, especially if it consists of third-party data or cookies.
Consumers will provide their data if you have built a relationship with them based on trust. According to Accenture, the proportion of consumers who said they are willing to share more information about themselves when brands are transparent rose to 73%, while 87% consumers say it’s important to buy from a brand or retailer that “understands the real me.”
This is a true revival of one-to-one commerce. It’s a new space for customer data platforms, as well as zero- and first-party data. So now, let’s look at the major myths that have arisen in the last couple of years around CDPs.
Myth 1: CDPs are expensive
Managing huge amounts of customer data is a challenge. Limited access to top talent who can address the challenges of data management and infrastructure optimization makes most CDPs depend largely on third-party solutions (not cheap ones). And guess who is paying for this?
Tip: Find a vendor that is capable of delivering a CDP based on a hybrid (own/third party) infrastructure that will not only cost you money but will also make you money.
Myth 2: Making data actionable across channels is easy
Proper integration of customer data and AI recommendations into an existing, very often largely unintegrated stack of marketing solutions (email, web push, messaging, live chat, website recommendations) can be a painful exercise. And it will take ages, if it ever actually does happen.
Tip: Look for a CDP with natively built and seamlessly integrated execution channels.
Myth 3: Implementation requires huge resources
Yes, a CDP does require IT resources to prepare the ground for marketers, but it doesn’t have to be a huge drain on that department. A CDP platform built with a proper understanding of a common framework can make a huge difference for the CMO and CTO.
Tip: Make sure your CDP vendor understands the idea of low technology burden and will guarantee that the CMO and CTO will still be speaking to each other after a 2-month CDP implementation. Ready-made plugins to ecommerce platforms make a huge difference, too.
Myth 4: CDPs are for large enterprises only
Obviously, the leading CDP vendors are targeting large companies which creates a feeling that it’s a game only for the largest players. But the truth is that a CDP can be effectively implemented at mid-size companies, too, and deliver great business results.
Tip: Look for a CDP vendor that not only has mid-size companies in their “sweet spot” but also offers a good value and pricing model accessible for smaller players with ability to pay more as you grow.
Myth 5: CDPs are a new solutionNot exactly. While under the name customer data platform, it may be seen as somewhat new as it was forged in 2013. In actuality, a CDP is a collection of technologies known and used in other systems, just rebuilt and repackaged as a single solution. But in our opinion, the real predecessor of CDPs was Jeff Johnson. Hired by Phil Knight in 1965 as Nike’s first employee, Johnson created an index card following each sale that included customer information, such as shoe size and preference, favorite distances to run and more as customers shared additional details with him.
Source: Sales Manago CDP