Every business can operate at multiples more, comments on CDPs

Multiples

Not by making people work harder and longer but by doing the things that are innovative and more valuable. It is a mixture of many things.

There’s a lot of modern economic principles that don’t help innovation. Innovation is not efficiency. The results of innovation drive great efficiencies but are often capital intense efforts that drive out the older, less efficient system in the long run.

When we examine wealth creation, we don’t see linear thinking. Think about Google. They started as a free search engine. They acquired paid search technology. The initial investment is small compared to the bets they make today. The present value looks nothing like the initial presentation for money.

When you look at CDPs, there are many limitations to these technologies today.

What Can You Do With a Customer Data Platform?

“Other customer data solutions lack one or more of those capabilities: CRM systems handle just limited amounts of rigidly structured data, marketing automation offers limited transformations and external access, DMPs work largely with anonymous profiles. These are not flaws in those systems, whose designs were optimized for other purposes. But they do mean those systems are not well suited to creating unified, sharable customer profiles. That’s what CDPs are designed for and that’s why so many marketers are now using them to solve that part of their customer data challenge.”

Why are CRMs so limited and yet the opportunity to build things that scale a business are so close?

An Overview of Customer Data Platforms (CDPs)

“CDPs are the next step in the evolution of data management systems, using data from platforms such as CRMs and DMPs. They are a critical component of your martech stack if you intend to do true data-driven customer-centric marketing campaigns across multiple channels. CDPs can help you get a 360-degree view of your customers, and deliver a unified experience to them at all stages of the buying journey.”

Why CDPs Can Fall Short for Marketers (and What to Consider Instead)

“Customer Data Platforms (CDPs) are a popular topic among B2C marketers looking to manage all of their customer data in one place. This is especially true as consumers are more conscious of their privacy — and as personalization continues to be the #1 priority across every industry.”

I think we will see further advancement in predictive data sets that are not based on ‘data of the past’. We will combine theories of customers (theories of the future) with data of the past. Are CDPs ready today? It looks like a great promise but too much complexity and not enough customer centric prediction. Stop making complex technologies and chasing too many data points.