Published on June 21st, 2022
Data is important. And that includes the data of your customers!
One of the newest emerging topics lately has been around the importance of having a customer data platform, also known as a CDP, and the benefits it can bring to your organisation.
The end goal for many companies is to create one holistic view of their customer so that all decision makings can be centred around that. When you have a customer data platform, you will be able to generate and sort data in a way that encapsulates this to your advantage.
In fact, it could be one of your company’s biggest assets for the future success of your company. Customer data is the way of the now and the future.
So this is why you will want to have customer data that is safely stored and use a data warehouse platform that can provide you with everything you need. This is essentially what a customer data platform is.
A customer data platform is designed to ingest data, provide resolutions and help build audiences. But more than just that, customer data platforms can also do additional functionalities such as cross-channel orchestration, predicting audience behaviours and integrating data into the various technologies your company uses.
The most reliable way to do this is through something called your data warehouse. This means that you should be relying on your current data warehouse to be your customer data platform. Here are the five reasons why.
1. Customer Data Platforms Are Not The Only Truth
Think about it, your data warehouse has all the data you have ever collected. Regardless of your industry, you have already technically built a customer data platform through what is your data warehouse—even if you didn’t quite realise it yet!
It is important to remember that getting a separate off-the-shelf customer data platform can blur the truth a bit. In fact, they really can not ever replace your original data warehouse. While external customer data platforms can support it, they can never actually provide the same truth that your data warehouse can.
All that you have to do is work to utilise your data warehouse in a way that can help provide you with data that it’s the definition you are seeking. If you do it right, you can actually push out your data to various business tools throughout your organisation.
2. Customer Data Platforms Don’t Integrate Well With Data Teams
It is important to realise that your whole company needs to benefit from your customer data platform. This is why an easily accessible data warehouse is better than another external platform. While many marketing teams get approached to use customer data platforms on top of the data warehouses already being used in their company, it is important to recognise that you really want to ensure that whatever you use remains too cross-functional.
The data teams and marketing teams both need a system that allows them to build data models, analyze customer behaviour and never interfere with the productivity of one another. By using your data warehouse as your customer data platform, you will be allowing the marketing team to visually segment their audiences through data models, and be able to work with the data team to ensure these models are built correctly and accurately.
3. Customer Data Platforms Have Limited Flexibility
External customer data platforms are much stiffer when it comes to the data models built around them. This means that it is really hard to have cross-functional data models and personas that cross over to multiple accounts.
Customer personas are never in black and white. There needs to be flexibility in how they are assessed and the variations that can make them unique to your data models that are already pre-established. There is way more flexibility when you create and model personas using your data warehouse instead. Don’t restrict your customer insight because of a limitation that could easily be avoided.
4. Customer Data Platforms Get YOUR Data
That’s right, by using an external customer data platform you are essentially allowing them to use your business data for their own benefits and purpose. This is perhaps one of the most compelling reasons to build your customer profiles through your existing data warehouse instead. That way you own your data—and no one else!
This also means that you are not locked to simply be within a third party’s parameters. Instead, you can call the shots and adapt your data warehouse and customer profiles as needed to support your individual business needs.
At the end of the day, you want to have accurate overviews of your customers and use your data to do so. But you want to make sure that you are not locking yourself in or putting the security of your data at risk. This is why you should be using your data warehouse as your customer data platform.