Investing in CDP: Building the Business Case Internally

RECAP: In March, we explored how ready we are for CDP and what being ready means in terms of prerequisites.

If you have those covered, then in April, we move one step closer to your CDP investment.

Building the business case for a CDP investment

1. What are the business impact areas of having a CDP- what will get better and how?

2. Where will we see the results first? Break down the areas of productivity that CDP can deliver

3. Why should management/ leadership care about CDP?

4. How much will it cost in the short, medium and long run?

Where to begin?

As we have seen in the last 3 issues of the CDP explainer, an appropriate CDP investment has the potential to transform your marketing outcomes. It can:

• Unify the customer view across campaigns, devices and formats

• Give a high level of visibility on identifiable and anonymous customers and

• Enable a marketer to make far more effective, personalized and impactful marketing interventions

In short, the right CDP with the right data inputs and the right execution tools, can help deliver the elusive ‘seamless experience’ to customers along their buying journey. Enough data exists to suggest that offering true personalization and a seamless experience will lead to better business outcomes in terms of faster, higher value and more sustainable conversions and retention.

Great. But you still need to convince management that you need a 100K or more (depending on the solution you are seeking). And that is assuming your data inflow is of a usable standard. But in addition, the process of building the case helps clarity in your mind exactly how you would use the CDP to make the transformation from campaign driven marketing to integrated and seamless marketing.

In the case of a CDP, the main area of impact is in knowing your customer and applying that knowledge to execute more personalized, relevant and timely marketing initiatives. Everything flows from there. Unfortunately, a CDP investment is not cheap – neither in terms of money nor effort. There are many pitfalls that can lead it to fail at an implementation level, and thus, you need to be very mindful of how you approach both- building the business case, and further down the line (assuming the investment is approved) at the project implementation phase.

Here are the 6 crucial questions to build your CDP business case

Q1. WHAT WILL SUCCESS LOOK LIKE? STATE YOUR EXPECTED OUTCOME

Q2. WHAT IS STOPPING US FROM GETTING THERE TODAY?

Q3. HOW WILL A CDP HELP US GET THERE?

Q4. WHAT IS THE EXPECTED ROI AND BY WHEN

Q5. WHAT ARE THE BUSINESS RISKS OF NOT ADDRESSING THOSE OBSTACLES WITH A CDP SOLUTION?

Q6. WHEN CAN WE GET STARTED / OPERATIONAL ISSUES

MINI CASE STUDY Covered are:

1.       How Lytics CDP helps The Economist connect all of their customer data together into a cohesive customer experience.

2.       How AgilOne helped Tumi drive marketing ROI and improve CX

Read More https://www.martechadvisor.com/articles/data/investing-in-cdp-building-the-business-case-internally/