What is a CDP and Why Do Marketers Need It?

In this webinar, Shamir Duverseau, Managing Director at Smart Panda Labs, and David Raab, Founder of the CDP Institute, are going to clear up any confusion or misconceptions marketers might have surrounding the Customer Data Platform.

Speakers:

• Alec: Host, CMS Wire
• Brian Carlson: Founder, ROC Consulting, CMS Wire Contributor
• Josh Francia: Chief Growth Officer, Blueshift

Welcome and Introduction

Alec: Good morning, good afternoon, and welcome to today's CMS Wire webinar. My name is Alec, and I'm here to help answer any of your general or technical questions. I'd like to welcome you all to today's webinar titled, " Activate Customer Data More Effectively with a Smart Hub CDP."

Here's a rough overview of today's presentation:

• My introductions will take about two minutes.
• We have about 35 to 40 minutes of presentation.
• We'll leave 10 to 15 minutes for Q&A at the end.

If you have a question at any point, please click the Ask a Question tab underneath our webcams. If you run into any technical issues, submit those in that Q&A box as well, and I'll work with you to get them resolved. You can download other resources from today's sponsor in the Resources tab, appearing above the slides.

If you stick with us until the end, you'll be automatically entered to win one of two $50 Amazon gift cards or a donation of equal value to a nonprofit. So stick with us!

I want to take a moment to thank today's sponsors, Blueshift. We've been working with them on this webinar for the past couple of months, and it's been an absolute pleasure. We really appreciate the support of Blueshift on sponsoring today's event.

Moving from Compliance to Customer-Centricity

Brian Carlson: Look, here's what's been going on. The acceleration of consumers engaging with brands through digital channels due to the pandemic, there's been a concurrent expansion in the volume, velocity, and types of data.

The initial reaction of companies hearing about new privacy and compliance mandates like the GDPR and CCPA have been compliance. "Oh, how are we going to get in compliance? How are we going to provide the right to be forgotten?" But forward-looking businesses are going to think beyond compliance.

They're going to start thinking about how to leverage that customer data for business benefits. CDPs, Smart CDPs can really take you to the next level.

The State of Marketing: Post-Pandemic

Fantastic. Okay. So things have changed a lot since the pandemic. Here are some good stats:

• 60% of customers now have higher expectations of their digital experiences than before COVID.
• Customers expect personalized and relevant interactions.
• 68% of CMOs at large-scale brands expect to increase their MarTech investments through 2021.

The CDP Market is Growing

This is from January 2021, so it's pretty recent:

• In the second half of 2020, the CDP industry added 13 vendors, 800 employees, and $250 million in funding.
• The revenue will reach $1.55 billion in 2021, a 20% increase over 2020.
• 73% of decision makers say CDP will be critical to their customer experience efforts.

The Active Customer: A New Growth Flywheel

Josh Francia: Great. Thanks, Brian. Very interesting stats on CDPs and on the market in general.

The pandemic has given us a unique global experience. It allowed us to spend more time with brands, which we tend to reward with activity. These active customers drive brand growth.

Examples of the Active Customer Concept

• Wayfair: 31 million active customers driving the majority of their revenue.
• Nike: Active members in Nike Plus spend three times more than passive customers.

The Shift to Activation Marketing

Activation marketing shifts from a channel-first to a customer-first approach:

• How do I bring the experience to wherever the customer is?
• Using AI to understand what’s most relevant to the customer.

The Role of Technology: The Smart Hub CDP

A Smart Hub CDP unifies data to help deliver targeted experiences:

• Unifies your data for timely and relevant customer interactions.
• Utilizes AI for predictive analytics and personalized recommendations.

Smart Hub CDP Functionality

• Privacy management and compliance: Essential for GDPR and CCPA compliance.
• Next best action recommendations: Inform other parts of the organization outside marketing.

Conclusion and Farewell

Brian Carlson: The ability to activate customers and orchestrate their journey in a CDP allows you to provide value to customers. This enhances customer relationships and drives business benefits. Thanks for joining us today!