As always, data has become the defining factor for a business’s growth. Data as a service on the other hand has found a plethora of adaptors with a projected 23.2% growth rate for the period 2022-2032. This growth rate might give us a figure of $68.725 billion by 2032. While data and its use cases surge ahead, tools dealing with the same have evolved as well. One notable example is the emergence of CDPs or Customer Data Platforms.
But what is a CDP?
To put it simply, Customer Data Platform is a software that assimilates data from various sources and combines them to form a coherent profile of every customer listed in the database. What it does is it extracts and understands data from first and third-party sources (first-party primarily) and then goes on to create detailed customer profiles that give all the information an advertiser needs. The richer the source of the data is, the better the result will be, which is why zero-party data is also considered a prime source.
While steps should be taken into account while going about the regular functioning of your CDPs and their ingestion of data, it should be acknowledged that the CDP should also be upgraded to meet the current trends and demands of the advertising realm. Since your CDP works on actionable intel fed to it, it is crucial for you to keep your zero-party data strategy updated as well since that’s what your CDP is going to ingest for its entire lifespan.
The upgrade: A much-desired move for the current-gen CDPs
Close to 10% of users feel that their products are meeting the current requirements. When the aspects of the future are taken into account, this number shrinks to a mere 1%. This, coupled with the fact that 66% of people feel that having a CDP is crucial to conduct modern-day businesses paints a grim picture of the things that are desired from a CDP nowadays.
A robust CDP capable of handling the weight of future projects is a must now more than ever. The reliance on the latest iteration of the data stream for efficient results has grown substantially. Taking into account this need alone might be able to solve a lot of issues that advertisers face today. It would not only be helping the advertisers but Data as a service model as well. The importance of having a real-time data strategy can be highlighted by the fact that 78% of data leaders deem it a must-have for a CDP.
Customer data is the cornerstone of digital marketing now more than ever. The heavy reliance of people upon the fact that data drives sales is clearly evident. Close to 63% of people consider customer data to be the driving force behind the offers they give while 43% rely on their loyalty programs. The advancements made in AI and Machine Learning have already started showing their prominence. Complex identity graphs scattered across the digital landscape paint a sophisticated yet coherent picture that lends itself well to the growing demands of advertisers.
Data is the sole differentiator between giant data companies now. If you know how to handle and extract as many insights as possible, you’re already having an edge over the competition. This calls for steps that take into account not only the kind of data that is being extracted but the source where it is being extracted from as well. Third-party data sources are slowly becoming relics from the past. The instant need to cater to the customers’ needs has taken the paramount spot now.
While earlier it used to be a matter of striking when the time is right, now it has become a matter of striking with the right understanding at the right time and place. The number of variables in this concoction only seems to increase with the passage of time. Moment marketing, trend-setting, and getting the “latest” updates, such terms have taken the primary place. So, if your CDP is equipped enough to take on the rigors of the future with insights from the moment, you’re leading the pack.
That sums it up
Data as a service has evolved substantially, with concepts of AI and Machine Learning flanking its principles. CDPs are going through an evolutionary phase that demands an increment in their survival ability for the foreseeable future. With the right tactics, you can implement a strategy that works well for the CDP you currently possess. Since data quality has become important now more than ever, it is clearly evident that your attention should cater to the upgrades of your CDP as well as the data sources you’ve been using till date.
Speaking of CDPs and data, if you’re an advertiser looking for a robust audience manager that’ll stand the test of time, Cubera is the name you’re looking for. With state-of-the-art algorithms and techniques ready to assist you at any moment, your ROAS is set to skyrocket like never before.