Will #CDPs help retail marketers achieve numbers while cutting more budgets in 2023? ??

Retailers have had a challenging year in 2022, with growing costs for advertising - raising up to 2x (*1) - while handling budget reduction requests to close the year, in average by 25% (*2). Obviously, assuring planned revenues.

It seems that there is a trend towards cutting more?#CX?and?#marketing?spending in the EMEA and AP regions in 2023, despite clear evidence suggesting that reducing these investments during times of crisis?is detrimental to businesses?(check sources *3, *4).

Fortunately, we live in times where retailers can leverage a new type of IT approach, breaking free from most operational constraints, skipping known boundaries and testing new scalable CX and marketing models. One of the levers to challenge the old model is called?#CDP?(Customer Data Platforms) -?primarily optimizing media investments with 1st party data and enhanced CX operations in the mid/lower funnels.?And the retail sector - with most of those channels still manually handled, accodting to MIT/SAS survey (*5) - is one of those markets that can benefit most of it.

In the context of retail,?#CDPs?are becoming increasingly important for marketers and digital leaders as they - depending on each vendor - can connect the supply chain, merchandising, assortment and single customer views as never before. They also provide more analytical and personalized customer journeys and the ability to orchestrate omnichannel campaigns at a?lower?#TCO.

You can see who's playing this CDP retail game in 2022 in the following IDC Marketscape:

This is especially instrumental for retailers - from grocery to electronics, furniture, beauty, fashion, travel and more) that need to optimize their omnichannel presence and orchestration with new levels of efficiency, with decreasing budgets:

?? Research shows that the fusion of marketing and advertising technology has made it easier for marketers to automate and optimize their campaigns and?#media?#investments, centralizing the orchestration of omnichannel journeys, channels and contents.

?? With the adoption of CDPs, marketers can identify and track customer interactions across various channels and devices from a?#singlepoint, providing valuable insights into customer behaviour and preferences. This allows marketers to enable and sustain real-time journeys, create more personalized offers and improve the effectiveness of their campaigns.

?? Additionally, CDPs enable marketers to integrate customer data with other analytical sources (like SAS Viya), marketing technology such as cloud databases (like Snowflake, GBQ) and advertising platforms, exchanging?#enriched?segments and events. This allows to define powerful segments and activate new customer journeys quickly (and test new renevue streams) within weeks, not months.

?? The use of "hybrid CDPs" has also made it safer for marketers to comply with data privacy regulations, such as the General Data Protection Regulation (#GDPR) and the California Consumer Privacy Act (CCPA), as well as many growing privacy initiatives in MEA and APAC.

SAS has extensive experience in various retail sub-industries to optimize sourcing, merchandising, assortment, and omnichannel customer journeys by combining data, analytical, and operational marketing.?Check the Ulta Beuty case here, link in the image:

So at the end, CDP's are already here, providing tools and capabilities to?#skip?the well-known and growing operational?#limits?of CX management. So if you don't yet have your CDP horizon, or if your use cases / TCO are not paying off, take a look at this?SAS?#CI360?#CDP?video or get a deeper view here:?https://lnkd.in/dMWZX4ic

CDP VIDEO:

SOURCES*:

1 - The Drum?https://www.thedrum.com/opinion/2022/04/28/the-price-digital-ads-has-skyrocketed-here-s-how-counteract-it

2 - Analyticpartners?https://analyticpartners.com/news-blog/2022/09/marketing-budget-cut-or-not/

3 -?https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/adapting-customer-experience-in-the-time-of-coronavirus

4 - https://www.forrester.com/blogs/12-09-14-when_it_comes_to_total_returns_customer_experience_leaders_spank_customer_experience_laggards/

5 - MIT/SAS Study - Retail vertical?https://sloanreview.mit.edu/sponsors-content/retail-and-cpg-customer-experience-trends-tech-and-takeaways/

6 - IDC CDP Marktetscape Report:?https://www.idc.com/getdoc.jsp?containerId=US47506221

6 - SAS Retail & CPG analytics and CX:?https://www.sas.com/en_us/industry/retail.html

7- SAS Customer Intelligence and CDP capabilities:?https://www.sas.com/es_ar/solutions/customer-intelligence.html#allproducts

#MarTech?#Digitalmarketing?#CRM?#Realtime?#Analytics?#AI?#Joyrneys?Kate Parker?Andreas Heiz?Mike Turner?Lisa Loftis?Antonio Calvo?Patrick M Dittli?Vinnie O'Brien