Why CDPs are the first choice for customer data management

Customer data is one of the most precious assets that any organisation owns, as it describes the preferences and behaviours of the people who matter most.

But for many organisations, the rapid evolution of their customer-facing systems has meant that data has become scattered among different applications, and hence difficult to pull together for driving relevant and real-time outcomes.

At the same time, many marketers find themselves under pressure to change their acquisition and remarketing tactics, thanks to third-party cookie deprecation and changes to traditional behavioural targeting methods designed to enhance consumer privacy.

The solution to these challenges is to bring all customer data into a single location, where it can be actioned quickly and effectively.

This is what a customer data platform (CDP) offers, and it is proving to be an essential tool for marketers who wish to run more effective campaigns, improve compliance with privacy obligations and, most importantly, create more relevant and meaningful outcomes for customers.

Why use a CDP?

A CDP acts as the central repository for all first-party customer data, providing data management and analytics tools that derive actionable insights in support of campaign objectives and customer outcomes.

Implementation of a CDP brings numerous business benefits. Firstly, it can enable marketers to increase the relevance of messages they send to customers by ensuring those messages align with demonstrated behaviours and preferences. This means marketers can send messages based on behaviours that have been observed rather than inferred. This capability also allows marketers to suppress specific messages; for example, to ensure that a customer who has already purchased a product does not continue to receive messages that encourage them to purchase the same product. Also, marketers can identify customers who should not receive certain messages, such as employees and partners. Both capabilities can improve the cost effectiveness of campaigns by increasing response rates and reducing spend on poorly performing communications.

Furthermore, because data streams into the CDP in real time, decisions can be made in a timely fashion, allowing marketers to communicate with customers while they are actively considering their decisions.

The data management capabilities of CDPs also make it easier to understand which messages are driving the best responses, allowing marketers to refine their attribution models and further improve marketing efficiency.

Finally, because marketers now have greater certainty regarding the types of customer data they hold and how it is being used and stored, they can also have higher confidence that they are adhering to privacy regulations.

The benefits of Tealium CDP

The performance of Tealium CDP was recently evaluated in a Forrester study, The Total Economic Impact™ of Tealium CDP, where Forrester aggregated the real-world experiences of Tealium customers into a composite organisation.

Findings included an aggregate 8.5 per cent improvement in reengagement from cart abandonment, generating a 3 per cent increase in average order value that led to an additional $1.8 million in profit over three years.

The ability to respond to real-time data-driven insights from Tealium CDP boosted the organisation's ability to reach customers by 200 per cent, generating more than $1.2 million in profit. A 25 per cent lift in productivity across digital advertising, web analytics and database operations teams also delivered $590,000 in savings.

In addition, because Tealium CDP adoption enabled rationalisation of the organisation's technology stack, this delivered a further $782,000 in savings.

Altogether, Forrester found the organisation gained an additional $7 million in benefits over three years from the adoption of Tealium CDP.

Conclusion

With first-party data an increasingly critical asset for marketers, it is vital that they invest in the right tools to maximise its value.

By adopting Tealium CDP, marketers can achieve a proven performance boost, save money, improve privacy compliance, and create a foundational data layer to power effective customer engagement for years to come.