customer data platforms: the promise and the hype€¦ · customer data platforms: the promise and...

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Customer Data Platforms: The Promise and the Hype

Joe Stanhope – Vice President, Principal Analyst

June 18, 2018


900 hp.

15,000 rpm.

0 to 100 kph in 2.1 seconds.

370+ kph top speed.

6g load in corners.


Image source: GoCar (http://www.gocar.gr/)


Track and measure everything

150 telemetric sensors track 500 parameters.

5 billion measurements per race.

Optimize continuously

Annually - Full car redesign.

Weekly - Incremental upgrades.

On the fly - Tune for driver preferences, weather, and track.

© 2018 Forrester Research, Inc. Reproduction Prohibited

Not true. Anyone can collect data.

Connect the dots and execute.

Sound familiar?

On the surface, F1 looks like a data play.


Consumers are connected

*Base: 4,509 US online adults who researched products on a smartphone in past 3 months; †58,000 US online adults (18+); ‡4,527 US online adults (18+)

Source: Forrester Research World Mobile And Smartphone Adoption Forecast, 2015 To 2020 (Global); *Forrester Data Consumer Technographics NA Retail and Travel Online Benchmark

Recontact 1, Q3 2017; †Forrester Data Consumer Technographics North American Online Benchmark Survey (Part 1), 2017; ‡Forrester Data Consumer Technographics North American

Technology, Media, and Telecom Recontact Survey 2, 2017; §GlobalWebIndex


Experiences transcend tangible products

10© 2018 FORRESTER. REPRODUCTION PROHIBITED.

Consumers expect that

they can get what they want

in their immediate context

and moments of need.


The way we engage is fundamentally changing


Dramatic expansion of the engagement landscape


Source: Forrester Data Consumer Technographics Global Online Benchmark 2018, Part 1


Dynamic context drives velocity and granularity

Source: “Modernize Your Martech Stack For Moments” Forrester report.


Pull shifts to....


Push


The struggle is real.


Ecosystem issues: Splintered data and identity

Source: “The Strategic Role Of Identity Resolution” Forrester report.


Ecosystem issues: Silos

Source: “Modernize Your Martech Stack For Moments” Forrester report.


Ecosystem issues: Complexity


Ecosystem issues impact the business

Base: 51 global B2C marketing professionals (not all responses shown)

Source: Forrester’s Q4 2017 Global Cross-Channel Campaign Management Forrester Wave™ Customer Reference Online Survey and Forrester’s Q4 2017 Global

Enterprise Marketing Software Suites Forrester Wave™ Customer Reference Online Survey

24%

25%

27%

29%

33%

33%

35%

39%

39%

Orchestrating customer interactions across marketing, sales, andservice

Cross- or up-selling current customers

Understanding customer behavior across channels and devices

Understanding the optimal customer journey for a given objective

Retaining current customers

Increasing or enhancing customer engagement, education, or loyalty

Attributing marketing performance across interactions

Finding new customers

Integrating online and offline interactions

What are the biggest marketing challenges you expect to face in the next two years? Please select up to five challenges.


Is there a better way?


Ultimately, it’s all about the data


Managing data is hard, and it’s

getting harder.

Current approaches aren’t keeping

pace.

It’s time to rethink the data fabric for

marketing and CX.


Enter the Customer Data Platform

› An emerging tech category attempting to solve a very real problem

› Forrester tracks 70+ vendors that inhabit the CDP market

› Universal CDP tenets

• Collect data

› Import data from multiple sources

› Store data in a centralized environment

• Provide access to data

› Pass data to CX, marketing, and insights systems for activation

• Enable management by business users

› Marketers and CX pros have direct access to the tools and data


Truth time: There is no cohesive

CDP definition.


Is it easier to define what CDPs aren’t?

› Data management platforms. Brands need a DMP to develop targeted

audiences, locate new audiences, enhance their audience datasets, and

syndicate audiences to media partners.

› Customer or marketing databases. Brands need a single point of truth

that documents the customer profile, campaign history, contextual data,

and powers the orchestration of cross channel customer engagement.

› Identity resolution and data management strategy. Brands need a

complete data strategy – backed up by an appropriate data backbone to

achieve scale, accuracy, and reach – to assess identities and align them

with profiles to support insights and engagement.


CDPs come in four primary flavors

Data Pipes

Personalization

Marketing Automation

Measurement


Caveat emptor: This is an emerging market

› Early stage: CDPs are still developing

• Imbalanced market demand

• Young, small, often venture backed, vendors

• Majority of vendors pivoted rather than built for CDP

› Cognitive dissonance: Abstract rather than consolidate data

• Limited view of customer engagement

• A bolt-on - does not replace core marketing and CX applications

• Middleware is rarely appealing and business users need services

› Immaturity: Product capabilities are nascent

• Building out breadth and depth


Is a CDP for You?

Definitely Maybe.


Certain use cases may match your needs

› Staging data for customer insights

› Web and email personalization

› Data collection for marketing and CX clouds

› Short term data storage while db/data lake projects are in-flight

› Small or resource constrained (e.g. people, budget) teams

› Fill-in niche data collection or distribution gaps within existing stack


CDPs appeal to

our desire for

simplicity, but

complexity still

lies beneath the

surface.


CDP Smarts, Part 1: Buy with purpose

› Define your use cases

• What types of data, insights, and engagement support your objectives?

› Identify and focus on the appropriate CDP flavor

• What type of CDP align with your objectives?

› Ignore the collective CDP category

• Consider individual vendors for the task(s) at hand

› Consider all the supplier options

• CDPs, non-CDPs, marketing clouds, specialist identity resolution/data vendors, etc.

› Complement your existing tech stack

• CDP is not independent of existing applications, systems, and processes


CDP Smarts, Part 2: Buy deep capabilities

› Data

• Channel and data coverage, packaged integrations, applications of AI

› Identity resolution requirements and customer profiles

• Ability to resolve identity at scale, data management and hygiene, precision

› Connect and integrate insights

• Reporting types, modeling workbench, data access for third party tools,

attribution, analysis, optimization/testing


CDP Smarts, Part 2: Buy deep capabilities

› Orchestration

• Segmentation, automation features, content access

› Experience execution

• Direct execution for which touchpoints, personalization, export and packaged

integrations with delivery suppliers

› Performance

• Infrastructure and applications are scalable, performant, and secure

› Services and support

• Company viability, product support and documentation, professional services

customer data platforms: the promise and the hype€¦ · customer data platforms: the promise and...

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