Customer Data Platform best practices help users get the most out of their customer data. The CDP Institute asked leaders in the Customer Data Platform industry what best practices they see when it comes to maximizing value in the enterprise.  They had lots of answers, so we’ll share them in categories over several blog posts.

First up: CDP Use Cases.

CDPs and Business Outcomes.  A Customer Data Platform can have many benefits for businesses. “Every CDP strategy should start with alignment and clarity around expected business outcomes, but this foundational step is often neglected. Companies that maximize value from their CDP, though, have technical and business teams that collaborate early and often to align on business objectives, KPIs, and requirements. This encourages executive sponsorship and paves the way for future cooperation,” observes Brooks Patterson, Head of Product Marketing, RudderStack.

Start with Goal-Setting.  Having a goal for your data is important. “Create a North Star that defines the objectives of your 1P data initiative and the KPI. Describe what are you trying to do with customer data? Is your 1P initiative focused on: 1) Data Foundation, 2) Customer Insights 3) Data Activation or 4) Personalization at Scale (i.e. delivering personalized experiences across the customer journey). North Star defines your end goal & how to get there. With your North Star written down, define the initial use cases that will lead to the outcomes you have defined. If your North Star is Personalization at Scale, define the 3 initial use cases that will drive towards this goal. Then work back from there to build the technology & team you need to succeed,” recommends James McDermott, CEO, Lytics.

Clearly Define Your Use Cases.   It is important to know what use cases the CDP will support. “CDPs are positioned in Gartner’s “Trough of Disillusionment” due partially to vendors over promising/under delivering. Clearly defining intended use-cases and requiring proof of concept is a critical strategy to ensure that the use cases for the CDP are thoroughly understood and vendors are evaluated on driving desired outcomes,” explains Lisa Loftis, Principal Product Marketer, Global Customer Intelligence, SAS.

Build a Strong Data Foundation.  Use cases should tie into the CDP’s strength, which is data unification. “When starting with a CDP, leading companies focus on establishing a strong data foundation, ensuring clean, integrated data from all sources. They then build upon this foundation, developing use cases iteratively to address specific business needs. This approach allows for continuous value generation, scalability, and adaptability as new use cases are added over time,” explains Guus Rutten, Managing Director, GX.

Prioritize Use Cases Based on Maturity.  It can be helpful to approach use cases via the data layer approach. “Identify and prioritize use cases based on your maturity and work backwards to define the minimal data layer required to support them. Stack use cases across the customer journey to unlock grander orchestration while you’re racking up small wins for momentum. Eventually your data layer will become a strategic asset supporting efficiency, growth, and agility,” says Matt Parisi, Director of Product Marketing, Tealium.

Don’t Stop with Marketing Use Cases.  Best practice use cases include “unifying data across all systems for a 360-degree view and automations, for multi-use beyond marketing segmentation,” as well as “continuous clean data” according to Mary Vue, VP, Marketing and Partnerships, Syncari.

Plan a Phased Implementation.  Enterprises can implement their CDP in phases for fast results. “A CDP can be a silver bullet insofar as the target is visible and accessible. To that end, implementation is best pursued in a phased programme starting with simple use cases that deliver small-but-measurable value quickly. Early successes build confidence and trust that serve as a robust foundation for more complex, large-scale execution,” notes Projjol Banerjea, Founder & CPO, Zeotap.

Create Cross-Functional Alignment.    Look beyond technology to build support throughout your organization.  “Whether you’re implementing new software or activating out of the data warehouse, you need buy-in from IT, Data, Product, and Marketing stakeholders. Gaining commitment with a business case and understanding of needs is essential. Furthermore, your legal & privacy teams are an important part of the extended group to ensure that your efforts comply with laws and policy,” explains Craig Schinn, Co-founder, Actable.

Measure Results and Celebrate Success.  Build a Customer Data Platform use case roadmap and follow it.  “You need organizational alignment, but you also need momentum. Develop a roadmap of use cases of high achievability and value. Make those use cases happen early and make sure they are measured. Determine data gaps and plan accordingly for more complex use cases. Communicate successes and ensure your CDP effort maintains the support it needs to achieve full value,” says Craig Schinn, Co-founder, Actable.

Thank you to our participants!