- In the competitive retail market, investing in a Customer Data Marketing Platform (CDMP) is pivotal for growth-driven companies.
- One of Vericast’s data scientists emphasizes the importance of strategy, defined goals, understanding KPIs, and commitment when considering CDMP investments.
- Choosing the right CDMP partner requires ensuring clear study design, defined metrics, relevant statistical analyses, and avoiding those who overcomplicate with jargon.
In today’s competitive retail landscape, data drives decision-making. Recognizing the Customer Data Marketing Platform (CDMP) as the backbone of a strong marketing tech stack is essential for businesses in this environment. We sat down with Vericast Senior Data Scientist, Ted Schomay, to dive deep into the intricacies of CDMP investments and what companies need to know before taking the data plunge.
Q: What does a company need to have in place before investing in a CDMP?
TS: Investing in a CDMP is not just about having data; it’s about having a clear strategy. One of the most significant advantages is integrating analytics and advertising research, allowing companies to test marketing strategies and get immediate feedback. This is invaluable. But before jumping in, firms should:
- Have defined goals that are testable and actionable
- Understand their target KPIs
- Identify potential strategies to drive desired outcomes
Companies should ask themselves these four questions and ask them of potential vendors:
- What are our primary objectives?
- How essential is it to acquire new customers versus retaining existing ones?
- How do we measure success?
- Are there unexplored demographic or geographic areas in our market?
Lastly, commitment is crucial. Some strategies might not yield immediate results, but continuous testing and learning are essential to improve over time.
Q: Have clients faced any roadblocks with CDMP investments?
TS: Absolutely. Many companies struggle with organizing and curating data. While having data is necessary, perfection isn’t. A good CDMP can streamline the process of improving your data quality. Another major roadblock is being blind to aspects of your advertising environment and opportunities. For instance, a business might not know that it’s able to saturate its current market and therefore be tempted instead to focus on refining targeting rather than expanding its market.
Q: What should companies be wary of when selecting a CDMP partner?
TS: Choosing the right partner is crucial. Here are four things to keep in mind:
- Ensure they have a sound study design
- Metrics and goals should be clearly defined
- A good analytics partner will offer statistical analyses that are relevant and understandable
- Avoid companies that hide behind jargon. If they can’t explain something simply, they probably don’t understand it themselves
Q: What questions should companies ask potential CDMP vendors during the pitch process?
TS: Great question! Companies should:
- Inquire about the difference between campaign performance and lift
- Understand how they design advertising research experiments
- Be honest about your data quality — the reaction will be very telling about the vendor’s capabilities
Final Thoughts: Navigating the Data Landscape With Confidence
Investing in a Customer Data Marketing Platform is a significant move for companies in the retail sector. It’s not just about having data but leveraging it strategically. By knowing the right questions to ask and what to look out for, companies can make informed decisions that will propel them forward in the competitive market.
Unlock In-depth Insights: Your Essential Guide to First-Party Data Solutions
To further empower your decision-making and delve deeper into the nuances of first-party customer data solutions, we invite you to download “The Ultimate Buyers Guide to First-Party Customer Data Solutions.” This essential guide by Vericast provides valuable insights, a practical checklist, strategic advice, and much more to help you make the best decision for your company.