[{"@context":"http:\/\/schema.org","@type":"BlogPosting","about":"http:\/\/www.wikidata.org\/entity\/Q48997925","name":"CDPs for retail: Build vs. buy considerations","headline":"CDPs for retail: Build vs. buy considerations","description":"When researching customer data platforms (CDPs), retail brands often wonder if they should build or buy the solution from a vendor.","dateModified":"2021-07-21T19:27:00Z","datePublished":"2021-03-04T06:05:00Z","mainEntityOfPage":{"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/"},"image":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/03\/CDP005_CDPRetail_HB-1200x630.jpg","height":"630","width":"1200","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/03\/CDP005_CDPRetail_HB-1200x630.jpg"},"author":{"@type":"Person","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/dan-tranter\/","name":"Dan Tranter","description":"An expert in the field of Data-Driven Customer Experience with a background in social data and customer data management, Dan has worked within the Brand, Agency and Vendor realms. That\u2019s given him unique access into the insights and challenges organizations face when trying to meet their customers where they are. Daniel is a firm believer that CDP is revolutionizing CRM by truly putting customers at the center of all business processes.","sameAs":"https:\/\/www.linkedin.com\/in\/danieltranter\/","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/dan-tranter\/"},"publisher":{"@type":"Organization","logo":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg","height":"96","width":"293","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg"},"address":{"@type":"PostalAddress","name":"The Future of Commerce","addressCountry":"https:\/\/www.the-future-of-commerce.com\/#Country","addressLocality":"Newtown Square","addressRegion":"PA","postalCode":"19073","streetAddress":"3999 West Chester Pike","@id":"https:\/\/www.the-future-of-commerce.com\/#PostalAddress"},"url":"https:\/\/www.the-future-of-commerce.com\/","alternateName":"The Future of Commerce and Customer Engagement","additionalType":"news media","name":"The Future of Commerce","description":"News, information, and analysis on the future of commerce, including e-commerce, customer engagement, B2B, B2C, DTC, supply chain, sustainability, and purpose.","sameAs":["https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.the-future-of-commerce.com\/feed\/"],"contactPoint":"https:\/\/www.the-future-of-commerce.com\/#ContactPoint","legalName":"The Future of Commerce","parentOrganization":"https:\/\/www.sap.com\/index.html#Organization","numberOfEmployees":"https:\/\/www.the-future-of-commerce.com\/#QuantitativeValue","@id":"https:\/\/www.the-future-of-commerce.com\/"},"hasPart":{"@type":"FAQPage","abstract":"A customer data platform, which is software engineered to collect, organize, and centralize customer data to build comprehensive unified customer profiles, provides a range of enterprise-wide benefits. The impact of the type of customer data a CDP can deliver is significant, allowing various departments to benefit from and act upon first party data in ways that improve the customer journey.","name":"CDPs for retail: Build vs. buy considerations","about":[{"@type":"Thing","name":"Customer data platform","@id":"https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"},{"@type":"Thing","name":"Customer Data Platform (CDP)","@id":"https:\/\/www.wikidata.org\/wiki\/Q48997925"}],"mainEntity":[{"@type":"Question","name":"Who will build the system? ","acceptedAnswer":{"@type":"Answer","name":"Who will build the system? Answer","text":"Building your own CDP allows you to learn about your customer base \u2013 as long as you have engineers to keep it running, talent to analyze the information for your specific business, and the vision to select which challenges you\u2019ll act on first.   In the war for talent, almost all organizations face challenges in hiring and retaining the type of data-engineering, data science, security, and privacy staff needed to support personalization at scale.  Without the right combination of skills, you won\u2019t be able to build, test, and measure the\u202fanalytics required for accurate and effective personalization. This will limit the value created by your personalization efforts. ","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Answer"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Question"},{"@type":"Question","name":"How will you create integrations? ","acceptedAnswer":{"@type":"Answer","name":"How will you create integrations? Answer","text":"In order to deliver personalization across channels, companies need to integrate a broad set of technologies. This can result in a complex and ever-expanding technology stack\u2014and can be very hard to manage.  Admittedly, some companies have made substantial investments and have pockets of excellence in their technology ecosystems. But the lack of proper integration keeps most companies from delivering a seamless one-to-one customer experience across channels.","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Answer1"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Question1"},{"@type":"Question","name":"How will you maintain the integrations? ","acceptedAnswer":{"@type":"Answer","name":"How will you maintain the integrations? Answer","text":"CDP value is derived from its ability to connect to other internal as well as external third-party systems. Since end-point systems are often updated, these connections must be maintained through APIs.\u202f Will you have the capacity, knowledge base, and continuity to maintain these integrations over time?  ","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Answer2"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Question2"},{"@type":"Question","name":"Who will use the CDP?  ","acceptedAnswer":{"@type":"Answer","name":"Who will use the CDP?  Answer","text":"<p>Many stakeholders can use a CDP to improve business outcomes. Here are some main considerations for the primary users:<\/p> <ul> <li>IT teams leverage all their current technology infrastructure investments and operate within the bounds of their own data privacy governance.<\/li> <li>Analysts require a single intuitive interface to deploy their models and organize their data. They also need flexibility to create reports and dashboards as detailed or as high-level as they need.<\/li> <li>Marketing teams require the ability to segment, manage, and operationalize data.<\/li> <\/ul>","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Answer3"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Question3"},{"@type":"Question","name":"Benefits of building your own CDP?","acceptedAnswer":{"@type":"Answer","name":"Benefits of building your own CDP? Answer","text":"<ol> <li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Full ownership of the code<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">&nbsp;<\/span><\/li> <li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">In house options<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">&nbsp;<\/span><\/li> <li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Features designed&nbsp;<\/span><span data-contrast=\"auto\">specific to&nbsp;<\/span><span data-contrast=\"auto\">organization\u2019s vision<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">&nbsp;<\/span><\/li> <li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">No vendor\/data lock-in<\/span><span data-contrast=\"auto\">&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">&nbsp;<\/span><\/li> <li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Upfront costs&nbsp;<\/span><span data-contrast=\"auto\">may be&nbsp;<\/span><span data-contrast=\"auto\">l<\/span><span data-contrast=\"auto\">ess<\/span><span data-contrast=\"auto\">&nbsp;a<\/span><span data-contrast=\"auto\">s&nbsp;<\/span><span data-contrast=\"auto\">the infrastructure is already in place<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">&nbsp;<\/span><\/li> <li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Margins&nbsp;<\/span><span data-contrast=\"auto\">may be&nbsp;<\/span><span data-contrast=\"auto\">higher&nbsp;<\/span><span data-contrast=\"auto\">as there are no subscription fees involved<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">&nbsp;<\/span><\/li> <\/ol>","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Answer4"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#Question4"}],"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#FAQPage1"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"03","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/03\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"04","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/03\/\/04\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"CDPs for retail:\u00a0Build vs. buy considerations","item":"https:\/\/www.the-future-of-commerce.com\/2021\/03\/04\/cdps-for-retail-build-versus-buy-considerations\/#breadcrumbitem"}]}]