How to Choose a Customer Data Platform (CDP)

1. Integration with Your Tech Stack

Ensure the CDP integrates smoothly with your existing tools, like CRM and marketing automation systems. This matters because it prevents data silos, enhances workflow efficiency, and improves the outcomes of your marketing campaigns. Ask vendors for a list of supported integrations and data sources and test them during a demo. You want a CDP that fits seamlessly into your current setup, using APIs, without requiring extensive technical workarounds.

2. Data Access and Reporting

Look for a CDP that offers robust data access and reporting functions. This is important for making informed decisions based on real-time data insights. During a trial, explore the reporting dashboards to see if they are intuitive and customizable. Ensure that you can easily extract and analyze the data points you need without jumping through hoops.

3. Plan Flexibility

Consider how easily you can upgrade or downgrade the CDP plan. Flexibility is key if your teams grow or your marketing teams’ needs change over time. Check if providers offer scalability and transparent pricing. You don't want to be locked into a plan that no longer suits your requirements, so ask about their policy on plan changes.

4. Onboarding and Support

Evaluate the onboarding process and the level of support provided. Effective onboarding ensures your team quickly adapts to the new system. Ask about training resources and support availability. A vendor with a responsive customer support team can make a big difference in how smoothly your team transitions to using the CDP.

5. Role-Based Permissions

Role-based permissions allow you to control who accesses what within the CDP. This matters for maintaining data privacy and security and ensuring team members only see what's relevant to them. Check if the CDP lets you set permissions easily and if you can customize access levels. Test the identity resolution feature to see if it meets your data governance standards.

6. Industry-Specific Compliance

Ensure the CDP complies with industry regulations like GDPR, especially if you're in a sector with strict data protection laws. This is essential for avoiding legal issues, maintaining customer trust, and protecting first-party data. Ask vendors how they handle compliance and request documentation to verify their claims. It's important the CDP aligns with your industry's standards.

7. Customization Options

Customization options allow you to tailor your CDP use cases. This is beneficial for aligning the platform with your workflows and business processes. During a demo, explore how easily you can customize the interface and functions. You want a CDP that adapts to your workflow, not the other way around.

A composable CDP gives you the flexibility to choose best-in-class tools for data collection, data unification, and orchestration, instead of being stuck with the tools the vendor offers. The best CDP allows you to ingest data from relevant touchpoints, adopt martech that suits your business needs, so you can offer personalized experiences and omnichannel support.

8. Automation Features

Automation features can save your team time by streamlining repetitive tasks. Look for a CDP that offers automation options like data syncing and audience segmentation. Test these features to see if they actually simplify your processes. Automation should enhance productivity, so ensure it's easy to set up and manage.

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How to Choose a Customer Data Platform (CDP): A 5-Step Framework

Choosing the right CDP can feel overwhelming, but breaking it down into clear steps makes it manageable. Focus on aligning the platform with your team's goals and current tech setup. Here's a simple framework to guide you:

Step 1: Identify Your Needs

Start by pinpointing your team's needs to streamline the CDP selection process. Here's how you can approach this step:

Gather Stakeholder Input

Collect insights from key stakeholders like IT, marketing, ecommerce, social media, and data analytics teams. They provide valuable perspectives on current challenges and desired features. Set up meetings or surveys to gather their input. This ensures the CDP will meet the needs of all departments involved.

List and Prioritize Pain Points

Identify and rank the pain points or blockers in your current system. Common issues might include data silos that prevent unification of customer profiles, slow data processing, or lack of integration. Create a list and prioritize them to focus on solving the most pressing problems first. This will guide your feature requirements list.

Align with Policies and Goals

Make sure requirements align with internal policies, vendor preferences, and security protocols. Consider regulatory goals if applicable, like GDPR compliance. This helps avoid compliance issues and ensures the CDP fits within your organizational structure. Check with your legal or compliance team for specific guidelines.

Differentiate Must-Have vs. Nice-to-Have Features

Identify which features are essential and which are simply nice to have. Must-have features might include real-time data processing, role-based access controls, or integration with your data warehouse. Nice-to-haves could be advanced reporting or mobile apps. This differentiation helps in making trade-offs if needed.

Ask These Questions:

• What complaints or blockers come up most often?
• What needs aren’t being met today?
• What features would solve your top 3 pain points?
• How does this align with our security protocols?
• What ROI are you expecting from this investment?

Step 2: Research Customer Data Platform (CDP) Vendors

Explore CDP vendors by conducting thorough research to find the best fit for your needs:

Conduct Vendor Scans

Start with a high-level scan of vendors using review sites, rankings, and case studies. This gives you a snapshot of how different CDPs perform in real-world scenarios. Look for consistent themes in reviews, such as ease of use or reliability. This initial research helps narrow down your options.

Compare Based on Needs

Compare tools based on your business size, existing integrations, and whether you prefer outsourcing or building in-house. Smaller businesses might need more out-of-the-box solutions, while larger firms could benefit from customizable platforms. Make sure the CDP can integrate with your current tech stack without major overhauls.

Identify Key Differentiators

Look for differentiators like implementation support, user experience, or flexibility for niche use cases. Some vendors offer dedicated onboarding teams, which can be a big help. Evaluate the user interface during a demo to see if it's intuitive. These factors can significantly impact your team's adoption and success with the CDP.

Document Your Findings

Keep detailed notes on each vendor's strengths and weaknesses. Use a spreadsheet to track features, pricing, and any standout elements. This organized documentation simplifies the comparison process and helps you make an informed decision.

Ask These Questions:

• What does each tool do best?
• Does it fit your team size, budget, and stack?
• What support and documentation are available?
• How flexible is the platform for our needs?
• What are the real-world results from similar companies?

Top Customer Data Platform (CDP) to Consider

Here’s my list of the top 10 customer data platform (CDP) options available, to help you get started in your search:

1. 1. Quickbase — Best no-code, highly customizable CDP
2. 2. Klaviyo.com — Best for for managing customer data for ecommerce marketing
3. 3. Velaris — Best for understanding health of customer portfolios
4. 4. Bloomreach — Best for integrating CDP with content management and search
5. 5. Medallia — Best for capturing customer feedback
6. 6. Segment — Best for ingesting and distributing user analytics data
7. 7. Sitecore — Best for capturing, unifying, and activating omnichannel customer data
8. 8. Totango — Best for startups seeking flexibility in optimizing customer journeys
9. 9. Keap — Best for small businesses
10. 10. Customer.io — Best CDP with a visual workflow builder

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Step 3: Make a Customer Data Platform (CDP) Shortlist and Reach Out

Narrow down your vendor options and start engaging with potential partners:

Shortlist Vendors

Based on your research, shortlist 2-4 vendors that best meet your needs. Consider factors like feature fit, budget alignment, and integration capabilities. This focused list helps streamline the decision-making process, allowing you to dive deeper into each option.

Send RFI or RFP

When you need detailed information, send a Request for Information (RFI) or RFP. This step clarifies what each vendor can offer and their approach to meeting your needs. Be specific about what you want to know, such as pricing structures or technical support options.

Book Demos

Schedule demos with your shortlisted vendors and prepare focused questions. During the demo, pay attention to the user interface, ease of navigation, and key features. Ask about real-world use cases to see how the CDP performs in scenarios pertaining to customer relationship management or email marketing.

Use Consistent Criteria

Evaluate each vendor using consistent criteria to ensure a fair comparison. Create a checklist of must-have features, pricing, support options, and other key factors. This consistency helps you objectively weigh the pros and cons of each option.

Ask These Questions:

• Can you walk me through a real customer story like ours?
• What support or onboarding resources do you offer?
• What features require an upgrade?
• How do you handle data security and compliance?
• What’s the typical timeline for implementation?

Step 4: Build the Business Case

Translate your vendor research into a compelling business case that your leadership team will understand and support:

Summarize Pain Points and Outcomes

Start by summarizing the pain points your team faces and the expected outcomes a CDP will deliver. Highlight issues like data silos or inefficiencies and how a CDP can address them. This sets the stage for demonstrating the value of the investment.

Present Cost Estimates and Timelines

Gather basic cost estimates and implementation timelines from your vendor research. Present these clearly to show the financial commitment and time frame involved. Use customer data platform pricing information to back up your estimates. This helps your leadership team see the practical side of the investment.

Articulate ROI and Risks

Explain the potential ROI, efficiency gains, and risks of not investing in a CDP. Show how improved data management can lead to better customer insights and increased revenue. Discuss the financial and operational risks of maintaining the status quo, such as continued inefficiencies and missed opportunities.

Ask These Questions:

• What business problem will this solve?
• What are the risks of doing nothing?
• What are the financial and operational upsides?
• How will this investment align with our strategic goals?
• What metrics will we use to measure success?

Step 5: Implement Your CDP and Onboard Your Users

Plan a smooth onboarding process to successfully implement your chosen CDP and get your team up and running:

Communicate the Rollout Plan

Clearly communicate the rollout plan to all users involved. Use emails, meetings, or internal portals to share timelines and expectations. Make sure everyone knows what to expect and when. This transparency helps reduce confusion and build confidence in the new system.

Assign Internal Owners

Designate internal owners and points of contact for the CDP implementation. These individuals should coordinate with the vendor and manage internal questions. They act as liaisons between your team and the vendor, ensuring smooth communication and problem-solving.

Ensure Training and Adoption

Make sure your team completes training and adopts the tool consistently. Organize training sessions using vendor resources like webinars or tutorials. Encourage users to practice and apply what they learn to real tasks. This consistency ensures everyone is comfortable with the new system.

Create Feedback Loops

Set up feedback loops during the rollout, incorporating vendor resources for support. Regular check-ins and surveys can help identify issues early. Use vendor support for troubleshooting and guidance. This proactive approach helps address concerns and refine processes quickly.

Ask These Questions:

• What’s the change management plan?
• Who’s responsible for roll-out?
• How will you track early success?
• What training resources do we need?
• How will we gather user feedback?

What’s Next:

If you're in the process of researching customer data platforms, connect with a SoftwareSelect advisor for free recommendations.

You fill out a form and have a quick chat where they get into the specifics of your needs. Then you'll get a shortlist of software to review. They'll even support you through the entire buying process, including price negotiations.