How to Prepare Your Company for a Customer Data Platform (CDP)

Implementing a Customer Data Platform (CDP) can be a game-changer for your business, but it requires careful planning and preparation. This article outlines key steps to ensure your company is ready for a successful CDP implementation, starting with the most crucial aspects.

1. Identify and Catalog Data Sources

A critical first step in CDP preparation is identifying and cataloging all relevant data sources. This process helps ensure that your CDP will have access to comprehensive customer data.

Types of Data Sources to Consider:

1. First-Party Data Sources:
   • Website and mobile app usage data
   • CRM systems
   • Email marketing platforms
   • Customer service logs
   • Point of Sale (POS) systems
   • Loyalty program data
   • Survey responses
2. Second-Party Data Sources:
   • Partner data
   • Co-branded initiatives
3. Third-Party Data Sources:
   • Demographic data providers
   • Behavioral data aggregators
   • Social media platforms

Steps for Data Source Identification:

a. Create a Data Inventory:

• List all systems and platforms that collect or store customer data
• Document the types of data each source contains
• Note the format and update frequency of each data source

b. Assess Data Quality:

• Evaluate the accuracy, completeness, and reliability of each data source
• Identify any data gaps or inconsistencies

c. Determine Data Accessibility:

• Check if each data source can be easily integrated with a CDP
• Identify any technical or legal barriers to data access

d. Prioritize Data Sources:

• Rank data sources based on their relevance to your CDP objectives
• Consider the effort required to integrate each source versus its potential value

Action Item: Create a comprehensive data source catalog, including details on data types, quality, accessibility, and integration priority for each source.

2. Assess Your Current Data Landscape

Understanding your existing data infrastructure is essential for a smooth CDP integration.

• Inventory your current data sources (CRM, email marketing platforms, web analytics, etc.)
• Evaluate the quality and accessibility of your data
• Identify data silos and integration challenges

Action Item: Create a data map showing all your data sources, the types of data they contain, and how they currently interact.

3. Ensure Data Quality and Governance

Clean, well-governed data is crucial for CDP success.

• Establish data quality standards
• Implement data cleansing processes
• Develop a data governance framework
• Address any regulatory compliance requirements (e.g., GDPR, CCPA)

Action Item: Form a data governance committee and develop a data quality improvement plan.

4. Map the Customer Journey

Understanding your customer's journey is crucial for effective CDP implementation and usage. It helps identify key touchpoints and opportunities for data collection and activation.

Steps to Map the Customer Journey:

1. Identify Customer Personas:
   • Create detailed profiles of your typical customer types
   • Consider demographics, behaviors, goals, and pain points
2. List All Touchpoints:
   • Catalog all potential interactions between customers and your brand
   • Include both online (website, social media, email) and offline (in-store, phone) touchpoints
3. Create a Journey Map:
   • Outline the typical path customers take from awareness to purchase and beyond
   • Include key actions, thoughts, and emotions at each stage
4. Identify Data Collection Opportunities:
   • For each touchpoint, note what data can be collected
   • Consider how this data could be used to improve the customer experience
5. Highlight Pain Points and Opportunities:
   • Identify areas where the customer experience could be improved
   • Note opportunities for personalization or intervention

Action Item: Develop a detailed customer journey map for each major customer persona, highlighting data collection points and CDP activation opportunities at each stage.

5. Define Clear Objectives and Use Cases

Before diving into CDP implementation, it's crucial to have a clear understanding of what you want to achieve.

• Identify specific business goals (e.g., improving customer retention, increasing upsell opportunities)
• Outline primary use cases for your CDP
• Set measurable KPIs to track success

Action Item: Conduct workshops with stakeholders from different departments to brainstorm and prioritize objectives and use cases.

6. Develop a Data Strategy

A comprehensive data strategy will guide your CDP implementation and usage.

• Define how you'll collect, store, and use customer data
• Plan for data unification and identity resolution
• Determine how you'll activate data across your marketing channels

Action Item: Draft a detailed data strategy document, including data collection methods, storage policies, and activation plans.

7. Prepare Your Technical Infrastructure

Ensure your technical setup can support a CDP.

• Assess your current martech stack and identify integration points
• Evaluate your IT infrastructure's ability to handle increased data processing
• Plan for any necessary upgrades or changes to your tech stack

Action Item: Conduct a technical audit and create a roadmap for any required infrastructure updates.

8. Align Your Organization

A CDP impacts multiple departments, making organizational alignment crucial.

• Get buy-in from leadership across departments
• Clearly communicate the benefits of the CDP to all stakeholders
• Identify CDP champions in each relevant department
• Consider necessary organizational changes to fully leverage the CDP

Action Item: Conduct a company-wide presentation on the CDP initiative, its benefits, and its impact on different departments.

9. Plan for Change Management

Implementing a CDP often requires significant changes in processes and workflows.

• Anticipate resistance and plan strategies to overcome it
• Develop a comprehensive training program for CDP users
• Create new processes that incorporate CDP capabilities

Action Item: Develop a change management plan, including a training schedule and new process documentation.

10. Choose the Right CDP

With your preparation in place, you're ready to select a CDP that fits your needs.

• Research different CDP options (traditional, composable, hybrid)
• Create a detailed list of required features based on your use cases
• Consider factors like scalability, ease of use, and vendor support

Action Item: Develop a CDP selection criteria checklist and begin vendor evaluations.

11. Allocate Resources

Ensure you have the necessary resources for a successful implementation.

• Budget for the CDP and any associated costs (e.g., additional integrations, training)
• Assign a dedicated project team
• Plan for ongoing management and optimization of the CDP

Action Item: Create a detailed budget and resource allocation plan for the CDP project.

12. Start Small and Scale

Consider a phased approach to CDP implementation.

• Begin with a pilot project focusing on one or two key use cases
• Learn from the pilot and refine your approach
• Gradually expand to more complex use cases and larger data sets

Action Item: Define a pilot project with clear objectives, timeline, and success metrics.

Conclusion

By following these steps, with a focus on thoroughly identifying your data sources and mapping out the customer journey, you'll be well-equipped to implement and utilize a CDP effectively. This approach ensures that your CDP has access to comprehensive, relevant data and that you're leveraging it at the most impactful points in the customer journey. Remember, the goal is to create a unified view of your customer that can be activated to deliver personalized, seamless experiences across all touchpoints.