OMR Masterclass video: https://www.youtube.com/watch?v=GwdQ9z4pOoQ
The platform economy has massively shaken up marketing. For decades, the unattractive procedural costs behind switching between brands have kept customers loyal: the costs of researching, evaluating, searching for and implementing a product from a new brand has kept customers coming back to an old one that they know that they can trust. The platform economy has taken a hammer to procedural switching costs: products and brands can be researched at the click of a button, customer reviews minimize economic risk, instant information has replaced needing to speak to an employee. The problems pile up as customers’ loyalty diminishes. Brands are left having to put a lot more focus on their active brand-customer relationship, but that’s a lot easier in theory than it is in practice.
Marketers need to think outside the box and create opportunities to connect with customers at times and places that haven’t been traditionally utilized. Dr. Markus Wuebben shows in his OMR Masterclass, I Got 99 Problems but my CDP Ain’t One, that when trying to connect with customers in new, innovative ways, the data requirements come thick and fast. We’re left feeling that we have 99 problems.
Wuebben explains in his OMR Masterclass talk that CDP technology cuts through our problems and gives marketers unparalleled opportunities for connection and relationship maintenance. The CRM and marketing landscape has changed rapidly: It’s fortunate that, thanks to CDPs, the ability for marketers to rapidly adapt and change along with it has arrived with perfect timing – just like a perfectly timed CDP-enabled notification.
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OMR Masterclass 2019 – I Got 99 Problems But My CDP Ain't One
1. I Got 99 Problems
but My CDP Ain't One.
2019 Masterclass
2. Customer Data &
Engagement Platform
● Founders: Manuel Hinz and Dr. Markus Wübben
● One of the first European suppliers
● Gartner: “Cool Vendor in Multichannel Marketing”
24. BERLIN
4. Check if
a) The dwell time has been exceeded
b) The user has re-entered the station
Central Station
14:20
Entered Geo-Fence
14:50
Entered the Station
25. BERLIN
5. Check if
a) The user is a car-sharing customer
b) Push notifications are enabled
c) A car is available
User
30. Required data
● Geo-data
● PII (Customer Record)
● Contact permissions
● Car-sharing provider's car
inventory data
● Campaign and template data
● Contact history
31. If you want to create highly engaging
campaigns you have 99 problems
Real-time /
near real-time
Relationships
between
data entities
Triggers Changing
data points
!
33. Overview of
Marketing Tech Stacks in 2019
(Presumed) Degree of Integration
Limited
Piecemeal
Fragmented
Best-of-Breed
Integrated
Best-of-Breed
Single Vendor
Marketing Suite
Proprietary
MarTech Stack
9%
(2017: 21%)
8%
(2017: 21%)
34%
(2017: 27%)
27%
(2017: 21%)
5%
(2017: 4%)
51% WITH MULTI-VENDOR APPROACH
Source: Walker Sands State of Marketing Technology 2019 (missing 17% = “non-existent”)
low high
Option 1Option 2Option 3
34. DEFINITION
“A marketing technology stack
consisting of solutions for every task
that has been developed, internally or
through an agency, to be fully tailored
for a particular company’s needs.”
• Solutions can be fully tailored
for the company
• Full control
• Very resource-intensive:
A multi-million euro budget
and a qualified in-house
team is necessary
• Time consuming!
Option 1:
“Proprietary
MarTech Stack”
“Proprietary”
PROS
CONS
35. • Campaign management (basic)
• Advanced analysis functionality
• Digital marketing capabilities incl. Ad
Mgt., Content Mgt., Mobile & Social Media
Mkt., Display & Email-Mkt.
Examples
SOURCE: Gartner Magic Quadrant for Multichannel Campaign Management, 14 April 2016
DEFINITION
Integrated solutions “that seek to
orchestrate company communications and
marketing offers with customer segments
across channels such as websites, mobile,
social, direct mail, call centers and email.”
Option 2:
“Single Vendor
Marketing Suite”
36. A fully integrated platform!
A fully integrated
platform is as
mythical as a
Himalayan Yeti.
RSG MARKETPLACE ANALYSIS 2015
CC BY 2.0 Robert Couse-Baker - Yetti on a bench
38. SOURCE: Gartner Magic Quadrant for Multichannel Campaign Management, 14 April 2016
Option 2:
“Single Vendor
Marketing Suite”
• The team only needs to work with one tool
to create, execute and analyze campaigns
• Single point-of-contact for support services
• Marketing trends are slowly adapted
• A single vendor is unable to provide the
best tool for every task (no best-of-breed
tools)
• Difficult implementation (old tool
migration etc!)
• Provider “lock-in”
• Costly consulting + support structure
“Single Vendor Marketing Suite”
PROS
CONS
39. SOURCE: Gartner Magic Quadrant for Multichannel Campaign Management, 14 April 2016
Option 3:
“Integrated
Best-of-Breed”
• No provider “lock-in” – free choice of tools
• Best-of-Breed tools can be used →
competitive advantage
• Offers the possibility of quick adaptation
(Martec’s Law)
• Very cost-efficient
• No Single-Point-of-Contact →
increased effort for communication
• Many tools need to be connected →
complexity
“Integrated Best-of-Breed”
PROS
CONS
40. Hype Cycle
Gartner Hype Cycle for Digital Marketing and Advertising, 2018
Expectations
Time
Peak
of
inflated
Expect-
ations
Innovation
Trigger
Thought of
Disillusionment
Slope of
Enlightenment
Plateau of
Productivity
Customer Data
Platforms
Data Management
Platforms
42. Standardized software (mostly a
SaaS solution)
→ Faster, less risk, lower costs
Compiles user data from all
available sources and stores
forever (legal boundaries need
to be respected)
→ A complete customer view
A CDP’s Properties
Packaged
Software
Persistent
& Unified
Shares data with other systems
→ An open system that enables
best-of-breed approaches
Accessible
45. Audience Campaign: Travel
Turnover
Subscription Bookings
Customers with >1,000€
turnover/year
Customers with
>50 trips/year
Customers
with bonus
cards
Holiday offer
for premium
customers
Premium
customers
46. Real-Time Campaign: Travel
1st class
upgrades on
crowded
trains
Trigger Condition Message
Crowded train;
travel distance
>500km
Premium customer;
app user
Free 1st class
upgrade
47. A combination of audience
and real-time campaigns
Multi-Stage Multi-Channel Campaigns
Condition
Mobile Push
Upgrade
for current
journey
Postal
Trigger
Heavy workload;
Travel distance:
>500km
Premium client
(App user)
Voucher
for next
journey(Non-App user)
51. DMP vs. CDP | DATA
● Utilizes all types of user/customer data
● Both anonymous and identified user
profiles
● Privacy: Mostly hard opt-in
● Focuses on web behavior data
● Mostly cookie-based = anonymous user
profiles
● Privacy: Either a soft opt-in or none at all
DMP CDP
52. DMP vs. CDP | Decision
● Segments are created based on user
attributes and all behavioral data
● Behavioral data segmentation is based
on raw data
● Additional real-time segmentation on
(multi-level) event data
● Segments are created based on
anonymous user attributes and web
behavior
● Web behavior, often in the form of
aggregated data, is also as a user
attribute
DMP CDP
53. DMP vs. CDP | Delivery
● Segment transmission as well as
trigger-based 1:1 communication
(multi-level and with multiple channel
combinations)
● Wide coverage of channels with 1:1
capability (email, messenger, onsite,
print, etc.)
● Regular segment transfer
● Strong focus on the Programmatic
Display ecosystem (DSPs, etc.)
DMP CDP
54. ● DMPs and CDPs have
different application areas
● They’re frequently used in
separation from each other
● But one can benefit from
the other
→ Linking CDPs & DMPs
56. Case:
Addressing users who have attended a OMR event in the past via
programmatic display to promote the new OMR podcast.
Use Case 1:
(Re)Targeting Existing Customers
Cookie-Matching
Audience: visitor
DMPCDP
PODCASTPODCAST
Audience: visitor
57. Cookie-Matching
Case:
Excluding customers from prospecting campaigns by transferring
customer segments from the CDP to the DMP.
Use Case 2:
Customer Exclusion Whilst Prospecting
Audience: Customers
PODCASTPODCAST
DMPCDP
Audience: Customers
58. Cookie-Matching
Case:
Transferring (selected) customer segments to generate look-alike audiences in
the DMP for new customer acquisition via programmatic display.
Use Case 3:
Look-Alikes in Customer Segments
Audience:
Premium customers
Look-Alike audience
PODCASTPODCAST
DMPCDP
Audience:
Premium customers
60. Create
Your
Own
Story
Use Case 4: Cross-Channel-Campaigns
Condition
Print
Reaction
Display
Trigger
Customer
becomes inactive
>1,000€ turnover
or
user has made
>20 purchases in
the past
User reacts to the
campaign
62. CDP Institute: The RealCDP Project
● Ingest data from any source.
● Capture ingested data in full detail.
● Store ingested data indefinitely.
● Create unified profiles of identified individuals.
● Share data with any system that needs it.
63. Data CDPs vs Engagement CDPs
Focus on data
● Pre-packaged standardized connectors to
many data sourcing systems (Salesforce,
Google, AdTech, Shop-Systems, etc.)
● Focus on data aggregation, cleansing,
“golden customer record”
● Usually transfer segments only to 3rd party
systems
● Pre-packaged standard connectors to delivery
systems (ESPs, Push Providers, Call-Center
Software, etc.)
● Focus on data activation into delivery systems
(campaigns, real-time data transfer) and other
systems (voucher system etc.)
● Sophisticated campaign management:
1:1 real-time and audience campaigns
● Some: Product/content recommendation
features
Focus on engagement
66. HBR:
“Zero defections, quality
comes to service”
(1990)
Journal of Marketing Research:
“Valuing Customers”
(2004)
Frederick F. Reichheld
W. Earl Sasser
Donald R. Lehmann
Sunil Gupta
67. Probability of
making a sale
is higher for
existing customers
These heroes gave empirical evidence that retention
is a good thing
Increasing retention
highly increases
profitability
Keeping a customer
costs 5 times less
than acquiring a
customer
Existing customers
are more likely to
try new products
and spend more
money
5%
Customer retention
25-95%
Profit
60-70%
Existing customers
5-20%
New customers
50%
Try a new product
31%
Spend more money
72. Platforms have eliminated procedural
switching costs to a large extent
● Economic risk costs
● Evaluation costs
● Setup costs
● Search costs
● Learning costs
● Benefit loss costs
● Monetary loss costs
Procedural
switching costs
● Personal relationship loss costs
● Brand relationship loss costs
Financial
switching costs
Relational
switching costs
Eliminated for all
by platforms
(Google, PC, Amazon etc.)
Mainly applicable in
subscription businesses &
business with rewards
(e.g. loyalty programs)
For the
“rest of us”
73. Reduced switching costs lead to a new
consumer decision process
Consideration Set & Evaluation
Initial
Consideration
Set
Moment
of Purchase
Trigger
(Post) Purchase
74. The less a business is
able to create switching costs,
the more retention becomes
re-acquisition.
75. Take a look at the
challenges & opportunities
of customer acquisition
and at how CRM can facilitate
re-acquisition.
76. Programmatic Advertising:
A Paradigm Shift?
The
Environment
Buyer’s
Black Box
Buyers
Responses
• Buying attitudes & preferences
• Purchase behavior
• Brand & company relationship
behavior
Source: Kotler 2016: Principles of Marketing
Marketing stimuli
• Place
• Promotion
• Product
• Price
• Buyer’s characteristics
• Buyer’s decision process
82. Key Takeaways
Simple use cases are
not as simple as you
expect them to be.
1. CDPs enable
advanced customer
engagement.
2. Merge acquisition
and retention.
3.
83. I Got 99 Problems
but My CDP Ain't One.
2019 Masterclass
@crossengage @markuswuebben
crossengage.io