Customer Data Platforms, how to know when you need one

Sep 9, 2020

Customer Data Platform vendors today are trying to solve a variety of problems related to customer data;

  • Centralization
  • Format
  • Structure
  • Latency
  • Etc.

Why? From a logical and functional capability perspective it certainly seems to make sense to have your customer data in one place, in a usable format and updated as fast as necessary. But why? What are the reasons your organization would want to do this?

Unfortunately, the answers to this question are NOT what CDP vendors are trying to solve. On that basis, you’ll want to clearly understand what expectations of value a CDP could bring to the organization before you entertain CDP build vs. buy decisions.

Toovio’s VCV Method is designed to answer the question “how to know when you need one”. From our collective experience, we can only understand the value of customer data through iteration. But what exactly are we iterating on?

A strategic objective mapped to a measurable data outcome which has an attractive cost. Vs. value characteristics when compared to known alternatives.

The VCV Method enables cross functional roles to follow a prescribed process that is both repeatable and scalable to discover a comprehensive list of alternatives. You will be able to leverage the VCV Method initially with no prerequisite however extensibility and scalability will require

  • Your organization needs a robust RTIM technology platform
  • Your Customer Data + VCV Method integrated into the RTIM technology platform data

See where this is going??? CDP capabilities are a commodity, at best. Knowing what to do with your customer data starts with your ability to take action on it.

If you knew what actions to take, how to measure them and had a method to extend and scale these efforts what would your CDP look like? Alternatively, if you knew none of the above but want your data to be centralized, organized, fast moving, etc. then your CDP would likely look vastly different. If you’re considering acquiring a CDP capability or are in the process of trying to leverage the value of an existing capability consider a Toovio VCV session.