The Horror show of implementing a CDP

Everyone is invited to this implementation, AND I MEAN EVERYONE. When it comes to a CDP this is where issues start to rear their ugly head!

Unlike most software implementations, which usually involve just a few specialized teams or experts, a CDP implementation pulls in voices from across the organization. I’ve worked on projects like implementing and reimplementing tagging systems in the past, where a clear processes and phased goals kept things moving smoothly. But with a CDP, it's a whole different ball game—every department, from marketing to IT, and even customer support, has a stake, ensuring the CDP meets its objectives.

Typically this is how it unfolds

Most companies I have worked in, already have had some sort of CDP setup and it lies dormant and misunderstood.

When I introduce the concept of leveraging a CDP effectively, I often encounter initial scepticism. However, this quickly turns to intrigue as I showcase a few key use cases:

1. Browsing Behaviour Audiences : Demonstrating how a CDP can track and analyse customer browsing patterns, providing invaluable insights into their interests and intentions.
2. Abandoned Basket Recovery: Illustrating the CDP's ability to identify and re-engage customers who have left items in their online shopping carts, and then being able to activate the data.

These practical examples often serve as the spark that ignites interest in the CDP's capabilities and this is when it quickly gets taken over by other teams claiming it should sit under their management, and so the battle begins between different departments on where it should sit.

The Feeding

As the battle begins on who supplies the data, who can access the platform and who has overall control of the audiences and connectors being activated. I start to wonder WHY? are they Chasing the glory? fear of missing out? personal hero status gains? who knows, but it always seems to play out this way.

If for example a data team loses out to the overall control of this, they will either start building out their own or make it very difficult to access the data required to complete builds of audiences. This again is extremely problematic and typically comes from senior leaders looking for control and a little power over what they think should be their domain. When in reality the biggest gains on a CDP are for web, omnichannel marketing personalisation's and paid media marketing.

A False Start

At some point there is going to be an RFP on assessing a new CDP. Going through an RFP process for a new CDP can feel like an endless slog—easily one of the most frustrating experiences I've had in my career. And I’m not alone in feeling this way; many colleagues agree it’s often an overly complex and drawn-out ordeal.

The process typically involves gathering large groups of people to make decisions, building complicated scoring systems, and, quite often, dealing with individuals who may not fully understand what they’re evaluating. One particular RFP I was part of stretched on for 6-9 months, during which time we continued using the current CDP. Ironically, that existing system worked perfectly well during the process and covered many of our use cases.

It’s hard not to question whether such a lengthy and convoluted approach is really necessary when it consumes so much time and effort, only to often lead to solutions that don't drastically change the status quo.

So Instead of an RFP maybe a more useful exercise would have been to draw up a strategy and scale up new use cases for the CDP, this would have focused all efforts to achieving the goals of the company rather than wasting time and money on some very expensive employees.

The well meaning questions

Can we use it to clean our data

I have been in meetings where a CDP was expected to clean bad data. The primary function is to integrate and organize data from various sources, not to rectify inherently flawed information.

Expecting a CDP to clean bad data is akin to using a sophisticated filing system to correct errors in documents; it's simply not designed for that purpose. The quality of data input directly affects the output and insights derived from a CDP. Therefore, it's crucial to implement proper data cleaning and validation processes upstream, before data enters the CDP.

Relying on a CDP to clean bad data can lead to perpetuating inaccuracies, misguided decision-making, and ultimately, a loss of trust in the platform's capabilities.

Instead focus on ensuring data quality at the source and use CDPs for what they excel at: creating a unified, actionable view of customer data from multiple touchpoints.

Can we analyse the data on the platform

CDP should not be primarily relied upon for in-depth data analysis. The core function of a CDP is to create a single, comprehensive view of customer data from various sources, not to perform complex analytical tasks.

Expecting a CDP to handle extensive data analysis is like using a storage warehouse to conduct scientific experiments; it's not designed for that purpose.

CDPs excel at organizing and making data accessible, but they lack the sophisticated analytical capabilities of dedicated business intelligence or data analytics tools. Proper data analysis requires specialized software and skilled professionals who can interpret trends, perform statistical analyses, and derive actionable insights.

By attempting to use a CDP for analysis, we risk overlooking critical insights, misinterpreting data, or making decisions based on incomplete analysis. Instead, CDPs should be viewed as a foundational component that provides clean, unified data for other specialized analytical tools and teams to leverage effectively.

Why can't we just use our data warehouse with SQL

Writing a SQL query for each audience and segment and then expecting this to be run in Real Time is very ambitious and expensive on a data warehouse.

Sustaining a unified view of customers is complex to implement in a standard data warehouse setup.

CDPs now have data governance and Privacy compliance built in. Taking care of this in a SQL query and maintain this will be an absolute nightmare. Implementing new audiences and segments will take longer and not very flexible. Where with a suitable CDP it can process the data in real time place customer in and out of audiences according the data being fed in real time whilst still remaining compliant.

Pre-built integrations: CDPs typically offer numerous pre-built integrations with marketing tools and channels, streamlining data activation. Implementing these connections from a data warehouse would require significant development effort.

The Appointment

Next, we come to the CDP gatekeeper—a team or an individual who acts as the middleman between the engineers and the teams requesting work. This person often has some technical knowledge but limited understanding of how a CDP actually functions. What they do excel at is aligning projects with business objectives.

The challenge with this setup is that the gatekeeper has to gather requirements and calculate the ROI for each use case. They then pass this information on to the engineers, assigning build timelines without consulting the engineers first. This lack of collaboration often means no one checks if the data needed is even available or whether the requirements are realistic. Despite this, delivery is expected within a set timeframe, creating unnecessary bottlenecks and frustration for everyone involved.

For many use cases often demand a clear ROI, but with a CDP, the value goes beyond just financial returns. It’s about crafting a seamless, engaging experience that builds customer loyalty, encourages advocacy, and leaves people with a positive impression of the brand. These outcomes, though immensely valuable, are harder to quantify.

As a result, projects focused on enhancing omnichannel messaging, refining audience segmentation for exclusions, or improving user experiences on the website often get deprioritised. Instead, the focus shifts towards hard sales—tracking what customers purchased and pushing accessories or add-ons—because these outcomes are easier to measure. However, this short-term focus can undermine the long-term value of creating meaningful customer experiences.

Out the other End

As the dust settles and initial use cases are implemented, the value of the CDP becomes clearer, and its structure starts to take shape. However, I often notice some teams and individuals losing interest or stepping away, either because their engagement wanes or the services aren't immediately relevant to their needs. In many cases, the CDP continues to operate autonomously in the background, efficiently driving audiences with activated data.

Marginal Gains

David Brailsford's concept of marginal gains—focusing on small, incremental improvements that collectively lead to significant results—can be highly relevant for a CDP, and is a concept I try to follow. This is how we can realise improvements for example :-

Data Collection: Small Improvements in Data Accuracy

• Focus Area: Ensure incremental enhancements in data quality from all sources.
• Application: Regularly audit incoming data streams for accuracy. For example, improve form design to reduce errors or refine API integrations for cleaner data capture.

Integration: Optimize Connection Points

• Focus Area: Improve how the CDP integrates with various tools and systems.
• Application: Incrementally improve integrations by automating one process at a time, such as syncing CRM data or adding new connectors for marketing automation platforms.

Customer Profiles: Enhance Completeness

• Focus Area: Build richer, more actionable customer profiles over time.
• Application: Add one new data attribute per month, such as customer preferences or behavioural insights, to make profiles more comprehensive.

Customer Journey Orchestration: Improve Pathways Gradually

• Focus Area: Make small improvements to customer journeys.
• Application: Test and tweak one element of a campaign at a time, such as email timing, messaging, or channel selection, for better engagement.

This is where the true value of the CDP shines. Its ability to enable fast, incremental improvements within the platform is one of its greatest strengths. We can rapidly create and optimize segments and audiences, boosting overall efficacy and driving better outcomes as described above.

Ride the Wave

Despite the challenges that come with CDP implementation, I've learned to:

• Embrace Resilience: The ability to bounce back from setbacks and maintain a positive outlook is crucial.
• Understand Diverse Perspectives: Recognizing and appreciating where each stakeholder is coming from helps in navigating complex situations.

While the technical aspects of CDP implementation are straightforward, the human element presents the most significant hurdles:

• Politics: Navigating organizational politics requires tact and diplomacy.
• People: Managing diverse personalities and expectations is an ongoing challenge.
• Teams: Aligning different teams with varying priorities demands strategic thinking and negotiation skills.

Being at the centre of CDP implementations has taught me the importance of:

• Adaptability: Flexibility in approach and mindset is essential to overcome unforeseen obstacles.
• Active Listening: Truly hearing and understanding the concerns and ideas of all stakeholders is vital.
• Patience: Progress often comes in small steps, and maintaining patience is key to long-term success.
• Clear Communication: Being prepared to explain concepts repeatedly and in various ways ensures everyone is on the same page.

Throughout my journey in CDP implementation, I've had the incredible fortune of collaborating with a diverse array of talented professionals. These projects have opened doors to countless conversations and insights, enriching my perspective and approach.

When you get it right, the benefits of a CDP are truly game-changing. They far outweigh the initial hurdles and investments. If you miss the mark, it can be a costly setback for both you and your team.

So, what's the secret sauce? It all boils down to mindset and teamwork. Surround yourself with the right people, foster a culture of open communication, and approach challenges with a can-do attitude. With these ingredients in place, you're not just implementing a CDP – you're embarking on a transformative journey that can revolutionize your organization.

Remember, every obstacle you overcome is a stepping stone to success. Embrace the learning curve, celebrate small victories, and keep your eyes on the prize. With perseverance and the right team by your side, you'll not only navigate the complex landscape of CDP implementation but emerge stronger, wiser, and ready to harness its full potential.

Thank you for taking the time to read this, I hope this has been useful, feel free to reach out I am always happy to hear from like minded people.