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Assessing Value of a CDP: A Framework for Adoption and ROI

Implementing a customer data platform (CDP) is a significant investment, so the C-suite will want to know if the business is gaining any value from it and what the return on investment is. Studies show CDPs can bring significant benefits, such as building an omni-present single customer view, creating consistent experiences across channels, providing real-time access to customer profiles, and eliminating redundancies through technology platform consolidation. However, as CDPs often work alongside other systems, it can be difficult to gauge their value contribution and prove ROI.

A comprehensive CDP adoption framework can be used to assess the platform’s value. It looks at platform utilization, organizational adoption, and ROI tied to CDP-powered activations. This provides both quantitative and qualitative data to inform understanding of how far the organization has come, how far it needs to go to reach its ideal maturity level, and what needs to be done to get there.

The framework assesses data availability, integrations, platform features, user community access, audience management, activations, and identity resolution. Data availability must be analysed to assess the data within the CDP, while integrations must be assessed for interoperability and collaboration. Platform features must be assessed to ensure all aspects are being leveraged, and user community access must be broadened beyond the marketing department to include other departments, such as sales and customer service. Audience management must be evaluated for access, automation, time to campaign, and use of machine learning (ML). Activations must be measured using existing measurement methodologies and infrastructure, while identity resolution must ensure comprehensive rules are established for stitching together all identifiers across data sources.

The framework provides a quantitative output, where current and future state maturity is scored on a scale of 1-5. This should not be arbitrary, and clear definitions should be established across multiple subcategories to ensure scoring is objective. It also provides a qualitative output, where areas to focus on should be identified in order to close the gap between current and target state maturities.

By using the CDP adoption framework, it is possible to assess the platform’s value, understand the current and future states of maturity, and identify areas to focus on for improvement.

Originally reported by Martech:
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