The document discusses factors for financial services companies to consider when deciding whether to buy or build a customer data platform (CDP). It notes that companies spending less than 9% of revenue on marketing should consider buying a CDP, while those spending over 15% should consider building one in-house. Buying a CDP offers lower costs through subscriptions but vendor dependency, while building one allows for full customization but at higher costs and slower release times. The document advises selecting an industry-specific vendor for bought CDPs and carefully planning a build.

1. INTELLIGENT AND SECURE CUSTOMER DATA PLATFORM FOR FINANCIAL SERVICES
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Buy or Build a Customer
Data Platform?

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 Factors to consider before Building or Buying CDP
 Time-to-market: How urgent is it for a company to deploy a CDP
 Availability of resources and technology
 What kind of CDP Capabilities and requirements are you looking for?

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Should you buy or build?
<9% of revenue spent on marketing should
consider buying a CDP
>15% of revenue spent on marketing should
consider building a CDP in-house
If,

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Buying a Customer Data Platform (CDP)
Only the cost for the subscription will be
charged for buying CDP platform
The total cost of ownership (TOC) is lower
as you will be paying monthly or yearly
Cost to buy a CDP can range from
$100,000 to $300,000 annually
Release timings will be accelerated as you will be
using ready-to-deploy CDP from an experienced
provider

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Advantages
You can have access to the best vendors
in the respective industry.
You can be dependent on the vendor for
the roadmap vision.
You don't need much of IT development
Advantages
 You can have access to the best vendors
in the respective industry
 You can be dependent on the vendor for
the roadmap vision.
 You don't need much of IT development

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Disadvantages
 The process of evaluating a
vendor is lengthy
 Vendor dependency is the major
drawback
 Predefined functionality doesn’t
cover the 100% requirements

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Building a Customer Data Platform (CDP)
 Building CDPs require the full range of IT development roles, large
development teams
 The costs to build and maintain a CDP in-house can be significantly
more (in the range of numbers)
 Release timings will be slow as you will be dependent on the in-house
team for new features.

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ADVANTAGES
You will have the
advantage of
full ownership of
the code
Road map vision
is completely
dependent on the
organization
You can
customize the
software based on
the business

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.
Financial Services companies that
are planning to buy a CDP are
better off selecting a vertical-
specific vendor that caters to their
industry. Companies that are
planning to build their own CDP
should carefully assess their
options and create a proper plan
that can guide them in creating the
perfect Customer Data
Platform.
To explore various CDP use cases for your business, Read more.

11. Thank you