Customer Data Platforms: The Promise and the Hype Joe Stanhope Vice President, Principal Analyst

Transcription

1 Customer Data Platforms: The Promise and the Hype Joe Stanhope Vice President, Principal Analyst June 18, 2018

2 Image source: Scuderia Ferrari 2017 FORRESTER. REPRODUCTION PROHIBITED. 2

3 900 hp. 15,000 rpm. 0 to 100 kph in 2.1 seconds kph top speed. 6g load in corners.

4 Image source: GoCar (

5

6 Track and measure everything 150 telemetric sensors track 500 parameters. 5 billion measurements per race. Optimize continuously Annually - Full car redesign. Weekly - Incremental upgrades. On the fly - Tune for driver preferences, weather, and track.

7 On the surface, F1 looks like a data play. Not true. Anyone can collect data. Connect the dots and execute. Sound familiar? 2018 Forrester Research, Inc. Reproduction Prohibited

8 Consumers are connected *Base: 4,509 US online adults who researched products on a smartphone in past 3 months; 58,000 US online adults (18+); 4,527 US online adults (18+) Source: Forrester Research World Mobile And Smartphone Adoption Forecast, 2015 To 2020 (Global); *Forrester Data Consumer Technographics NA Retail and Travel Online Benchmark Recontact 1, Q3 2017; Forrester Data Consumer Technographics North American Online Benchmark Survey (Part 1), 2017; Forrester Data Consumer Technographics North American Technology, Media, and Telecom Recontact Survey 2, 2017; GlobalWebIndex

9 Experiences transcend tangible products 2018 Forrester Research, Inc. Reproduction Prohibited

10 Consumers expect that they can get what they want in their immediate context and moments of need. 10

11 The way we engage is fundamentally changing

12 Dramatic expansion of the engagement landscape

13 Source: Forrester Data Consumer Technographics Global Online Benchmark 2018, Part 1

14 Dynamic context drives velocity and granularity Source: Modernize Your Martech Stack For Moments Forrester report.

15 Pull shifts to...

16 Push

17 The struggle is real.

18 Ecosystem issues: Splintered data and identity Source: The Strategic Role Of Identity Resolution Forrester report.

19 Ecosystem issues: Silos Source: Modernize Your Martech Stack For Moments Forrester report.

20 Ecosystem issues: Complexity

21 Ecosystem issues impact the business What are the biggest marketing challenges you expect to face in the next two years? Please select up to five challenges. Integrating online and offline interactions Finding new customers 39% 39% Attributing marketing performance across interactions Increasing or enhancing customer engagement, education, or loyalty Retaining current customers 33% 33% 35% Understanding the optimal customer journey for a given objective Understanding customer behavior across channels and devices Cross- or up-selling current customers Orchestrating customer interactions across marketing, sales, and service 29% 27% 25% 24% Base: 51 global B2C marketing professionals (not all responses shown) Source: Forrester s Q Global Cross-Channel Campaign Management Forrester Wave Customer Reference Online Survey and Forrester s Q Global Enterprise Marketing Software Suites Forrester Wave Customer Reference Online Survey

22 Is there a better way?

23 Ultimately, it s all about the data

24 Managing data is hard, and it s getting harder. Current approaches aren t keeping pace. It s time to rethink the data fabric for marketing and CX Forrester Research, Inc. Reproduction Prohibited

25 Enter the Customer Data Platform An emerging tech category attempting to solve a very real problem Forrester tracks 70+ vendors that inhabit the CDP market Universal CDP tenets Collect data Import data from multiple sources Store data in a centralized environment Provide access to data Pass data to CX, marketing, and insights systems for activation Enable management by business users Marketers and CX pros have direct access to the tools and data

26 Truth time: There is no cohesive CDP definition Forrester Research, Inc. Reproduction Prohibited

27 Is it easier to define what CDPs aren t? Data management platforms. Brands need a DMP to develop targeted audiences, locate new audiences, enhance their audience datasets, and syndicate audiences to media partners. Customer or marketing databases. Brands need a single point of truth that documents the customer profile, campaign history, contextual data, and powers the orchestration of cross channel customer engagement. Identity resolution and data management strategy. Brands need a complete data strategy backed up by an appropriate data backbone to achieve scale, accuracy, and reach to assess identities and align them with profiles to support insights and engagement.

28 CDPs come in four primary flavors Data Pipes Measurement Personalization Marketing Automation

29 Caveat emptor: This is an emerging market Early stage: CDPs are still developing Imbalanced market demand Young, small, often venture backed, vendors Majority of vendors pivoted rather than built for CDP Cognitive dissonance: Abstract rather than consolidate data Limited view of customer engagement A bolt-on - does not replace core marketing and CX applications Middleware is rarely appealing and business users need services Immaturity: Product capabilities are nascent Building out breadth and depth

30 Is a CDP for You? Definitely Maybe.

31 Certain use cases may match your needs Staging data for customer insights Web and personalization Data collection for marketing and CX clouds Short term data storage while db/data lake projects are in-flight Small or resource constrained (e.g. people, budget) teams Fill-in niche data collection or distribution gaps within existing stack

32 CDPs appeal to our desire for simplicity, but complexity still lies beneath the surface Forrester Research, Inc. Reproduction Prohibited

33 CDP Smarts, Part 1: Buy with purpose Define your use cases What types of data, insights, and engagement support your objectives? Identify and focus on the appropriate CDP flavor What type of CDP align with your objectives? Ignore the collective CDP category Consider individual vendors for the task(s) at hand Consider all the supplier options CDPs, non-cdps, marketing clouds, specialist identity resolution/data vendors, etc. Complement your existing tech stack CDP is not independent of existing applications, systems, and processes

34 CDP Smarts, Part 2: Buy deep capabilities Data Channel and data coverage, packaged integrations, applications of AI Identity resolution requirements and customer profiles Ability to resolve identity at scale, data management and hygiene, precision Connect and integrate insights Reporting types, modeling workbench, data access for third party tools, attribution, analysis, optimization/testing

35 CDP Smarts, Part 2: Buy deep capabilities Orchestration Segmentation, automation features, content access Experience execution Direct execution for which touchpoints, personalization, export and packaged integrations with delivery suppliers Performance Infrastructure and applications are scalable, performant, and secure Services and support Company viability, product support and documentation, professional services

36 Joe Stanhope Thank you FORRESTER.COM