Looking for a go-to agreed-upon CDP definition from industry experts — the answer to the still-popular question: “What is a customer data platform?”
Spoiler alert: You won’t find one, uniform CDP definition around or a clear-cut answer that explains exactly what the increasingly used solution is and does.
Whether in the press or research reports, coverage of the CDP has exploded.
But to the prospective buyer who knows they want a persistent, unified customer database, but isn’t sure a CDP is right for them, the hype has created a problem.
The CDP definition problem
With such a rapid growth in attention, the analyses, the recommendations, even basic definitions surrounding the CDP market can seem contradictory and confusing.
Let’s look a bit closer at a few of the most commonly cited CDP definitions and answers to that what-is-a-customer-data-platform question from authorities on the solution.
CDP definition #1: CDP Institute
The CDP Institute was the first to define the platform back in 2016. Despite the nascent state of this market, the group has already changed its original CDP definition.
Specifically, the it dropped “marketer-managed” in favor of the broader “packaged system.”
That’s because the CPD Institute’s David Raab said it “relates more closely … to the prebuild components and configurability that give CDP its advantages over custom development.”
This change is rooted in the common misperception marketer-managed means CDPs are only for marketers when data should be shared throughout an organization and not necessitate IT involvement (at least beyond implementation, in certain instances).
In our opinion, though, broadening the CDP definition makes it harder for potential buyers to evaluate, select, and implement the right CDP for their businesses.
A marketer-managed system can still benefit the entire organization. And the process of involving IT doesn’t stop a marketer from using data in real time.
As one technologist noted, “We need to understand what the end goal looks like and what it means for the marketers to have access to the data rather than current alternatives.”
CDP definition #2: Gartner
In 2017, Gartner came out with its distinct CDP definition — one that very closely aligned with the CDP Institute’s original definition.
The Gartner CDP analysis defined it as “an integrated customer database managed by marketers that unifies a company’s customer data from online and offline channels.”
According to Gartner, the customer data platform solves a marketer-specific need. The firm argues it’s “worth looking at” for those organizations that:
- Have lots of customer data: names, contact info, purchase history, logins, et cetera
- Want to model and activate that data in personalized, multichannel experiences
- Aren’t interested in or already have a DMP for third-party data integration
- Have multiple-point execution tools that are siloed and not easily integrated
- Want more control than a CRM system provides (i.e., a database that is accessible)
Generally speaking, these are great starting points for CDP use cases, and Gartner’s body of work on the platforms does the most to create both boundaries and guidance for buyers.
CDP definition #3: Forrester
In the Forrester CDP analysis, the firm drew notably different conclusions about vendors. The analysts ultimately concluded “CDPs are still a work in progress”:
- “Their identity resolution capabilities are nascent; their functionality is often less sophisticated than existing tools in marketers’ tech stacks; and CDP users report having to do more legwork than expected to stand up their implementations.”
We believe, as a new(-sh) category of technology, it makes complete sense that customer data platforms are a work in progress. It also seems to us that:
- 1) Without a clear CDP definition, the category is almost too broad to evaluate. Until there are clearer definitions, there is not “one thing” all these CDPs solve for. Many martech platforms say they’re a CDP because they have some functionality of a CDP (e.g., some ability to track customer journeys and collect data from other data sources).
- 2) Much of the functionality of marketing technology solutions goes un-tapped is because it’s buried behind an outdated or incredibly complex user interface. The best CDPs — ones built for marketers, as the original definition states — are meant to make data accessible to use, provide a single customer view (that is, CDPs that creates persistent, unified customer profiles).
- 3) B2C marketers should start with a comprehensive data management strategy. In fact, we believe that successfully implementing a CDP depends on having that kind of strategy in place in order to enumerate and prioritize your use cases that will then be the basis of selecting the right CDP for your organization.
- 4) Marketers often have to do more legwork than expected in setting up a CDP, but the “why” behind this matters a lot. For example, if IT promised a feed of transactional data that, upon importing, turned out to have a bunch of issues, the CDP did indeed reveal that issue which can be a blocker to standing up a use case, but it’s more a reflection of the state of data management than a buyer’s mistake or a CDP failing.
As you can see, the confusion around CDPs isn’t limited to buyers.
The well-known analyst firms haven’t agreed on a single CDP definition, and, even within analyst firms, there are varying predictions for how valuable a CDP will be.
Without a clear definition of what is and isn’t a CDP, we get long lists of “CDPs” when, arguably, there are many that are more complimentary than competitive. (That is to say, somewhat accessible to other systems, but not fully integrated like legit CDPs).
Problem: Marketers (and other teams) not getting CDP guidance they need
The CDP is in a unique tech category. Many of its features have existed (and do exist) in other tools, but haven’t previously been brought together to solve for a particular problem:
- The need for data unification and activation by marketing and other growth-focused teams (e.g., customer experience, analytics, digital product and experience)
In other words, the CDP provides a whole that is greater than the sum of its parts.
But those charged with identifying ideal solutions for their tech stacks can’t create a short list for an RFP of CDPs. They don’t have a guide to help them distinguish between types of CDPs or understand how each would approach solutions to their challenges.
Why you need a CDP should be fundamental to choosing one for your company.
Day-to-day marketers, CX professionals, and other business technology users have experience with systems like CRMs, ESPs, and DMPs for the better part of a decade.
With that comes an underlying assumption CDPs handle data similarly to those systems.
For example, knowing how an ESP works, you might assume segmentation means a static list. Then, you might not ask about real-time segmentation as part of your CDP evaluation.
There are so many critical questions that keep prospective CDP buyers up at night:
- “How do I know who I need buy-in from in order to make the CDP investment?”
- “What’s the playbook to ensure we’re ready to leverage our CDP once we buy it?”
- “Why is it worth the work to get the CDP fully up and running, especially right away?”
- “What will it look like when I have access to the customer data a CDP will provide?”
- “What are the use cases for my CDP so I can pick one that has strengths in that area?”
Solution: Using a CDP proficiency framework to find best platform
While some vendors focus exclusively on identity resolution, others focus on partnerships that allow you to use data to improve the CX and offer better customer service.
BlueConic’s model for this is collect, segment, and activate.
Our platform unifies data into persistent customer profiles to create a single view of the customer and enables you to segment that first-party data and send segments to other channels (e.g., Facebook, Google Ads) to deliver better experiences for your audience.
As with any tech, certain customer data platform vendors will be a better fit for your particular business needs, depending on their respective strengths in terms of capabilities.
The point is: Start with your most pressing CDP use cases in your evaluation process so you can ultimately narrow down prospective vendors for your short list.
You’ll come across myriad CDP definitions in your Googling. What it really boils down to during your CDP research, though, is finding a platform that fits your unique data needs.
Download our customer data platform business case eBook to learn how to effectively pitch the technology to your C-suite — and get on your way to accelerating growth.