In the rapidly evolving landscape of data analytics, the integration of Customer Data Platforms (CDP) has emerged as a pivotal development, particularly within the dynamic realm of e-commerce. In conjunction with the ubiquitous themes of Big Data and AI/ML, CDPs serve as comprehensive warehouses, meticulously storing the intricate journeys of customers in segmented tables. This curated repository facilitates seamless data processing, visualization, and analysis, providing invaluable insights into customer behaviours and experiences.
Essentially, a well-constructed CDP consolidates customer-centric information from diverse sources, encompassing Personal Identifiable Information (PII), Click Stream Data, Marketing Channel Engagement, Complaints, Returns, Refunds, Net Promoter Score (NPS) or Feedback, Return Visits, and Communication Touch Points (SMS, Email, Notifications, Direct Mailers, etc.). This unified data hub enables businesses to dissect and understand customer journeys with unparalleled clarity.
The spread of CDP as a buzzword has prompted analytics tools to develop user-friendly interfaces that seamlessly integrate with existing Data Warehouses. This integration facilitates the comprehensive visualization and analysis of the entire customer lifecycle, encompassing all touchpoints and interactions.
However, the pressing question remains: Is the substantial investment in CDP justified, and what specific business use cases does it address? The Return on Investment (ROI) hinges on the strategic alignment of CDP with the unique business challenges and objectives. To derive maximum value, businesses must embark on a systematic approach, beginning with the identification of relevant use cases and business problems.
- Listing Use Cases and Business Problems:
Businesses should meticulously outline the use cases that CDP is poised to address, identifying gaps in existing systems and determining resource availability, budget constraints, and an action plan for implementation. Use cases may vary, but examples from the e-commerce domain include Marketing Attribution Modeling, Optimization of Marketing Spends, Cross-Device Customer Journeys, and End-to-End Customer Lifecycle Analysis.
- Understanding Various Data Warehouses:
Integration with different Data Warehouses is a critical step in CDP implementation. Understanding the intricacies of each warehouse and identifying common variables, such as Customer ID, is essential. Modifications to existing warehouses may be necessary to align them with business requirements, necessitating the establishment of robust Data Pipelines and ETL processes.
- Identifying Customer-Level Data Variables:
Collaboration between Business Intelligence, CTO, Data Engineering, and Business teams is crucial in compiling a comprehensive list of required data variables. The goal is to strike a balance between storing relevant data for meaningful insights and avoiding the inclusion of irrelevant or unclean variables that could impact storage costs and processing charges.
- Auditing Data for Accuracy:
Post-integration, a thorough audit of the system is imperative. Ensuring data accuracy, addressing any leakages, and adopting a meticulous approach to data storage are vital steps. Sample data extracted for auditing purposes should align with the use cases outlined in step
- Data Visualization & Analysis:
Tailoring reports to meet reporting requirements is a key aspect, with an emphasis on developing visualizations that align with business objectives. Segmentation of data for targeted communication and providing access to Data Analytics teams for in-depth analysis empower organizations to derive actionable insights from the CDP.
In essence, the successful development of a Customer Data Platform is a collaborative effort, requiring synergy across various teams from the conceptualization of business requirements to the seamless integration of the system. The strategic deployment of CDP holds the promise of unlocking a treasure trove of customer insights, offering businesses a competitive edge in today’s data-driven landscape.
About Author:
Rajat Khatri, Assistant Vice President Business Intelligence, FNP (formerly Ferns N Petals)
