Customer Data Platform
April 16, 2024
Join a cohort of industry peers at the leading CX event of the year, Digital Velocity APAC 2022!
Date and Time: 11am AEST / 9am SGT on Thursday, 12 May
Location: Virtual
Technology-Enabled CX Personalisation
Designing a technology blueprint to enable the brand-to-consumer value exchange is key to competing effectively in the age of personalisation. When done well, CX personalisation pays dividends by enhancing consumer wellbeing, increasing engagement and improving loyalty through honouring customers’ preferences.
Macroeconomic Trends Driving CDP Adoption
Today, the commodification of data is an economy-wide trend, with organisations adopting a data-first mindset to intimately understand individual customer needs. In addition, the impending demise of third-party cookies presents both challenge and opportunity for brands in humanising the real-time customer experience. The challenge lies in creating a data management infrastructure that accelerates first-party data acquisition, whilst honouring customer privacy preferences. The opportunity lies in frontline access to granular real-time customer insight that can create enriched customer profiles for right-time activation.
The regulatory environment often struggles to keep pace with the rapid evolution of the global digital economy. Whilst data commodification emerged as a trend over the course of decades, it is only in recent years that governments, policymakers and regulators have heightened focus on strengthening consumer protections in relation to data acquisition, management and use. In response, organisations are recalibrating their data protection framework to comply with privacy obligations and earn consumer trust.
The Perennial DMP versus CDP Debate
The rapid rise in the popularity of customer data platforms (CDPs) has raised questions as to the utility of its predecessor, the data management platform (DMP). Initially conceived as a platform to integrate and manage data in a standard taxonomy, DMPs evolved into a tool for ad targeting through its advanced audience segmentation capability. Whilst DMPs provide segment-level audience insight, global digitalisation has led to a phenomenon of mass personalisation that is set to stay. Deloitte’s Consumer Review identifies that almost a quarter of consumers expressed willingness to share personal data in return for more personalised experiences; also known as the brand-to-consumer value exchange. Enter the CDP; the CDP provides the ability to individualise data sets to inform highly targeted and personalised communications in the moments that matter most. Moreover, CDPs are built with an inherent self-learning mechanism based on principles of AI to continually refine and optimise unique customer profiles. CDPs provide the ability to realise the economic value of data, whilst delivering the infrastructure to support compliance with privacy obligations. CDPs further enable user identification across an entire customer lifecycle, which allows brands to create long-term customer relationships that maximise customer lifetime value.
Originally, DMPs and CDPs were designed to meet the demands of an evolving data economy, with both platforms providing distinct, yet complementary, benefits. For example, DMPs rely on probabilistic identifiers, whilst CDPs resolve identity based on deterministic factors. In today’s complex regulatory landscape, a combination of probabilistic and deterministic factors for identity resolution can create a sophisticated, nuanced approach to leveraging data to build brand awareness, while propelling 1:1 personalisation at scale.
Building a Future-Ready Data Management Ecosystem
Learn how the complementary CDP and DMP duo scales CX personalisation in markets-of-one by attending Digital Velocity APAC 2022! Industry leaders and data management experts, Clement Tsang (Managing Director, Annalect) and Anand Chandran (Senior Customer Success Architect, Tealium) will share insights on how data management platforms translate real-time data into actionable insights to create meaningful CX in the moments that matter most.
