A customer data platform (CDP) is the most valuable tool in your arsenal for understanding and engaging customers. It’s been proven to drive better marketing results, increase revenue and reduce churn rates, but many companies are still hesitant to invest in a CDP because they think it costs too much. In reality, that’s not true at all! With some planning, you can implement a CDP on a budget – even if you have limited resources or don’t have any technical capabilities within your organization.
As you can see, the benefits of a CDP are clear. But how do you go about implementing a CDP?
There are many ways to get started. The first step is to understand where you’re starting from and what problems you want to solve. For example, if your current customer data system isn’t very effective at analyzing data, then improving its ability to do so will be an essential part of implementing your strategy. As per the experts at Adobe Acrobat, “A real-time CDP gathers data from different systems to unify it into a real-tie profile that can be activated across any channel.”
A customer data platform costs anywhere from $25,000 to $1 million. If you’re budgeting less than $100,000 per year on a CDP, that could be all the investment needed. However, if your company is spending more than $1 million in annual IT expenses—including infrastructure and software purchases—you should consider an alternative solution that doesn’t require additional hardware or software.
You should also consider whether or not you need support when considering customer data platforms. Some vendors offer free training with their products but charge for services like support or consulting.
The first step to developing any strategy is to have a clear “why.” What problem do you want to solve? There are many reasons why companies implement a CDP, but one of the most common is because they want customers to come back and purchase more. This can be accomplished by sending them offers or coupons for their favorite products and services or by providing them with information about new products that may interest them.
By having these answers ready in advance, businesses will be able to understand if their strategy has been successful at achieving its goals at the end of each quarter or year when they look back on their data analytics reports.
When it comes to implementing a CDP strategy, you have a few options for how you can start. The first is to use low-cost options when possible. For example, if your business already has a cloud-based system that performs the functions of CDP, then keep using it! This will be the cheapest way to get started and will also serve as an easier transition into the world of CDP.
However, if you don’t have such a system in place yet or want more advanced functionality than what your current platform offers, then look into public cloud services like AWS or Azure. With these platforms available at an average cost of $0/month (with Microsoft offering free trials), there’s no reason not to try them out! Additionally, keep in mind that open-source software like WordPress has become increasingly popular over recent years due to its low costs and ease of use.
It’s not an easy task to implement a Customer Data Platform. There are many things you need to consider in order for it to be successful, but if you’re committed and willing to invest time and money into this project, then it will definitely pay off.