Your expert for questions
Constantin Hourmouzis
Customer Data Platform expert
PwC Germany
Tel.: +49 160 1147813
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How to create optimized customer experiences and effective marketing activities
Do you understand your customers’ behavior and expectations? Is your company capable of offering personalized experiences and developing effective marketing activities? Whether you can achieve this largely depends on having high-quality customer data and being able to process it.
Client challenges: Customer data is often scattered across various silos and systems within a company. This makes it difficult to get a comprehensive view of customers and leverage data effectively.
An essential tool that helps you collect, organize, and utilize data to gain deep customer insights while maintaining data privacy is a Customer Data Platform (CDP). A Customer Data Platform serves as a central data hub that connects vast amounts of profile data in real-time, enabling intelligent orchestration of optimal marketing activities across channels and customer touchpoints.
PwC experts support you in implementing a Customer Data Platform, from developing the right data strategy to selecting the vendor, implementation, and governance.
“New technologies, changing consumer preferences, and stricter data protection restrictions make the marketing landscape increasingly complex for advertisers. To remain competitive and build long-term customer relationships, a Customer Data Platform is crucial.”
CDP benefits
What matters in implementing a Customer Data Platform
The foundation of every Customer Data Platform comprises four building blocks: data strategy, governance, vendor selection, and operating model. These elements enable the development of data-driven marketing through a CDP.
In a world without cookies, first-party data gains significance. These data are set to become indispensable for companies aiming to carry out customer-centric marketing. Developing a robust first-party data strategy is fundamental to boost consent and sign-up rates. Equally crucial is the value proposition companies extend to their customers. Alongside data governance and the target architecture, the first-party data strategy serves as the cornerstone for a successful CDP implementation.
Successfully implementing and operating a CDP requires thoughtful governance. It’s imperative to pose and address pertinent questions from the outset: Where is the Customer Data Platform anchored within the company? How is the CDP team structured? Have well defined use cases been established? Have all relevant stakeholders been involved in the early stages of the CDP selection process? A proficient team, comprising individuals with expertise in IT, marketing, data privacy, and management, plays a pivotal role in facilitating smooth integration, efficient utilization, and ongoing optimization of the CDP.
Selecting the appropriate vendor is crucial. Different solutions place varying emphasis on functions such as data ingestion, processing, and orchestration. The choice of the best software depends on various factors, including the company’s goals, defined use cases, and existing system landscape. The decision regarding the most suitable tool not only impacts the overall implementation success but also shapes the team structure and implementation approach.
Essential for achieving success is the establishment of the right CDP operating model. The dissolution of technological silos often leads to organizational change. It is imperative to view customers holistically from a platform perspective rather than confining responsibility to individual channels and touchpoints. Shifting from isolated marketing activities on specific touchpoints to a channel-agnostic, and often cross-functional, customer journey necessitates the development of new roles, processes, and workflows.
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The PwC CDP end-to-end implementation framework
- Foundation
- Conceptualization
- Pilot Phase
- Roll-out
- Operation
Foundation
The foundation describes the preparations for a successful implementation and consists of four key components: data strategy, governance, provider selection, and operating model. These elements serve as basis for establishing data-driven marketing using a CDP. The first-party data strategy is indispensable for systematically increasing the number of customer profiles and consents. The vendor selection is critical for achieving the technical objectives. The governance concept dictates how operations are managed at local, global, and cross-business unit levels. The Target Operating Model ensures a standardized process and organizational landscape to enable scalability. During this preparation phase, it is essential to foster an agile environment within the organization to continuously optimize governance, processes, and technology.
Conceptualization
Conceptualization involves detailed planning for implementation. During this stage, special attention is given to the target vision and use cases. It is also advisable to involve data protection early in this phase to incorporate legal requirements, such as those from GDPR or CCPA, into the implementation concept. Subsequently, a well-structured business case is essential to kick off the pilot phase successfully.
Pilot Phase
The pilot phase focuses on the technical implementation and validation of assumptions. Based on the conceptualization, PwC experts work closely with you to carry out the pilot in a chosen test market. This allows us to validate the anticipated value and the technical system architecture. The concept is tailored to the specifics of the pilot market. The technical setup of the CDP and the integration of data sources represent the first step. Special attention is given to data modeling and data attribute identification. The successful completion of the pilot phase culminates in the creation of a blueprint, which serves as foundation for future scalability.
Roll-out
During the roll-out phase, the system is expanded. The scope and methodology for scaling are tailored on company characteristics, such as market size, business units, and brands. Once defined, a standardized approach enables rapid scaling. Customized training for CDP stakeholders and agencies is an integral part to ensure a sustainable understanding. The successful execution of use cases serves as a critical element in this phase. Scaling reaches its conclusion as the reins are handed over to the operational team, entrusted with the responsibilities of ongoing maintenance and further optimization.
Operation
In the final step, activities in the line operation and further development are the focus. The Customer Data Platform’s operating model is derived from the defined governance. Beyond its technical and administrative roles, two critical elements stand out during operation: The CDP plays a pivotal role in building marketing reporting, as it provides unified customer profiles across systems. However, the most crucial aspect is the continuous development of the platform. Adapting and setting up new use cases will determine the systems’ success in the medium term. An effective evolution process creates a continuous cycle bridging innovation and scaling.
Our partners
We collaborate closely with leading international CDP vendors, enabling us to select and implement the most tailored solution for each company: Adobe, Bloomreach, Microsoft, Salesforce, Twilio, and Zeotap. This allows us to select and implement the tailored solution for each company. If you are already using or interested in the solutions of our partners, please reach out to us.
Are you ready for a CDP?
In an initial discovery workshop, we assess your individual situation, focusing on the potential value of a CDP for your company and developing a shared roadmap.
