The Future of Customer Engagement: Embrace Composable CDP for Enhanced Experiences
Business growth in today’s enterprise landscape has evolved beyond the simple delivery of quality solutions A customer-centric approach, tailoring experiences to individual preferences, is vital. Competition now requires personalized interactions, shifting focus towards cultivating deep connections for sustained growth. Companies worldwide are shifting their focus towards creating experiences that transcend to cultivate deep connections that drive sustained growth.
Customer Data Platform (CDP), a solution that has been instrumental in enhancing customer engagements for over a decade. Providing centralized data, they offer invaluable insights into customer behavior, serving as the single source of truth and driving engagement strategies. Positioned as the single source of truth for enterprises, CDPs play a pivotal role in driving customer engagement strategies forward.
What is a Customer Data Platform (CDP)?
Gartner defines customer data platforms (CDPs) as software applications that support marketing and customer experience use cases by unifying a company’s customer data from marketing and other channels.
CDPs have been instrumental in enhancing customer engagements for over a decade. They offer invaluable insights into customer behavior, provide centralized data, and serve as the single source of truth – they are pivotal in driving customer engagement strategies forward.
Centralized and organized data helps organizations provide personalized and targeted, effective marketing campaigns, build customer relationships, and drive growth. It gives a complete picture of marketing and sales. As a result of the endless estimated benefits, the CDP market is expected to hit a splendid 28.2 billion dollar mark by 20281.
Despite this promising outlook, only 58% of organizations2 can leverage CDP to deliver significant value. For the remaining organizations, CDPs have served merely as data platforms facilitating basic customer data unification, raising the critical question: Where are we falling short?
Here are the findings of where traditional CDP is falling short:
- Dual Sources of Truth: Traditional CDP has two sources of truth3 rather than one, as it forces you to manage data outside the existing data infrastructure. For example, an organization’s Data and Analytics team runs on the Data warehouse, while the Marketing team runs on CDP.
- Isolation of Customer Data: Traditional CDP leads to centralizing customer data but isolates it from the rest of the data in the data warehouse, losing the value proposition intended for CDP.
- Rigid Data Models: The rigidity of data models is a challenge in traditional CDP, as they restrict integration with other data sets and data types.
- Lengthy Implementation Periods: Implementing traditional CDP can take six -12 months, as it requires a lot of work to support adding new use cases or new data sources.
Composable CDP, the Breakthrough!
Composable CDP addresses the limitations of Traditional CDP by seamlessly integrating with existing data warehouses, establishing a unified source of truth. Its architecture strategically situates the data activation layer close to the data warehouse, leveraging the capabilities of the Data Cloud and data activation technologies. Seamless integration of huge data sets gives composable CDP a major advantage.
This innovation enables organizations to swiftly leverage their available data without additional infrastructure overhead. Moreover, it fosters agility in accessing and analyzing customer data from diverse sources, facilitating a deeper understanding of customer behavior.
Benefits of Composable CDP
Composable Customer Data Platforms (CDPs) offer a range of benefits as the architecture focuses on leveraging the available and real-time data. Here is a breakdown of these benefits:
- Architectural Modularity: Composable CDP provides complete control over the structured data and the technologies that can be used, allowing customized architecture based on the desired outcomes.
- Flexibility: Composable CDP offers the ability to access any data type. Flexible data modeling using the power of Sequel and the Data cloud helps4 grow the single data source. The role of the Data Cloud is particularly important in this process.
- Creative Data Management: Data managers5 can design a secure system compliant with the data warehouse. Thus, they can collect and unify customer data and create profile schemas that are exported to a customer data warehouse, ensuring uniformity across the company.
- Enhanced Tracking Intelligence: Real-time customer data tracking intelligence helps to access actionable customer insights. This leads to better customer scoring and real-time personalization.
- Time to Value: Composable CDPs offer faster implementation and deployment than traditional CDPs, reducing the time required to derive value from the platform.
Creating Best Customer Experiences
As data models grow complex, a unified infrastructure is essential for maintaining a single source of truth for all customer data. A seamlessly integrated CDP can exceed customer expectations, driving sustainable growth through exceptional experiences.
At V2Solutions, we craft composable CDP solutions that align with your industry requirements and goals. With a team of Data experts and extensive experience working with Customer Data Platforms, we can create tailored solutions that give you the best ROI.
Let’s connect and create the best customer experiences for you with Composable CDP.