Buying or building a Customer Data Platform (CDP) is a decision that depends on various aspects. The undertaking is complex in any case. Expert knowledge is required.
In building your own Customer Data Platform, it is important to recognize that it is at the heart of your data processing. It combines all other systems that are already implemented in your company. Like a type of middleware, it bundles data into individual customer profiles by automatically collecting, optimizing and processing them.
Build your own Customer Data Platform
A great advantage of building the Customer Data Platform yourself is that it ensures data processing that is tailored to your company’s needs. You can build it completely according to your requirements.
Since building a CDP yourself is a costly and time-consuming undertaking, decide from the very beginning, why it should be built. To do this, it is crucial to define company goals precisely.
Determine which departments will have access to the platform. Here we also distinguish between two aspects: For whom the platform is built (usually for the data engineers) and for whom it is designed (everyday users).
Building a CDP yourself is advantageous if:
- The collected data may not be shared with third parties, as this often concerns financial data or information about health.
- Special customizations are required to enable seamless communication between the platform and existing tools.
- The customizations are so special that they are not prioritized by the vendor.
The process of building a CDP yourself can take years and is very costly. Seek advice from experts in the field who will advise you on how to proceed.
What you need to consider when buying a Customer Data Platform
You can now find a Customer Data Platform from a variety of providers. This diverse offering on the market can quickly seem overwhelming. So before buying a CDP, make sure you define the goals you want to bring about with the implementation of this platform.
Implement this by identifying common pain points. In this way, you quickly uncover what goals you want your company to achieve. In the next step, you decide which type of CDP best fits your company structure and philosophy. This is an important decision to best handle your data and bring about fluid internal processes.
There are different types of Customer Data Platforms that are designed to perform different tasks:
- A data-focused CDP collects and organizes data from a wide variety of sources. Such a platform ensures that all departments in your organization rely on the data.
- Campaign-focused CDPs typically have an almost exclusive focus on using customer data in marketing.
- A partial CDP focuses on specific use cases for which it collects and processes data.
- Niche CDPs are not designed for ordinary cases. They are made for companies with very specialized approaches.
By purchasing a CDP, you know from the start what you are getting into. You obtain a software that ensures seamless and straightforward communication of your collected data. The maintenance and upkeep of the platform is handled by fixed contact persons. This gives you invaluable time to devote yourself to other things.
The step in the right direction
Whether you decide to build, or to buy a CDP: with a Customer Data Platform you have the perfect instance to record the influx of your data, catalog it and provide you with qualitative data.
Make sure your company is clear about which option better fits your company's philosophy. Consult knowledgeable experts at Thought Leader Systems for this complex issue.
