Senior Manager / Lead Digital Marketing
„By deploying digital platforms, we enable our clients to use the full potential of their data and become a truly insight-driven organization.“
How can digital platforms enable companies to become more insight-driven?
"Today it’s more important than ever for companies to embed insights from customer data into their decision making processes, to become more customer-centric organizations. But due to an increasing number of data sources from multiple customer touchpoints, it becomes increasingly difficult to get a comprehensive, single view of each customer – lots of customer data is collected, but not connected, and therefore not properly used. This is the potential that can be unlocked with the use of digital platforms. One of the latest digital platform solutions are customer data platforms. The key benefits of these platforms are connecting customer data from multiple sources and stitching them together to create a comprehensive, single view of each customer, as well as analyzing and acting on the data using machine learning.
By deploying machine learning and analytics, the organization generates valuable insights about the customer for insight-driven decision making on targeting, product development or other marketing activities. Moreover, by breaking silos due to the creation of one joined database, a customer data platform enables access to data insights across all departments – enabling insight-driven decisions throughout the entire organization."
Is there a typical approach to enabling your clients to better use their data, and become more insight-driven?
"A typical project in this area would be the implementation of a customer data platform that creates the technical basis, so our clients can use their customer data the right way. As it is not only about setting up the CDP technically, but also about choosing the right vendors and functionalities, as well as activating the CDP within the organization, our typical approach covers three phases – supporting our clients end-to-end: discovery, implementation and activation. In the discovery phase, we assess the current situation of the client in terms of their digital marketing maturity, along with people, processes, technology and data. Based on the identified maturity level and their digital marketing ambition, we define the target vision. With this vision in mind we define tailored CDP use cases and set up an appropriate implementation roadmap.
In the next phase we technically implement the CDP including the connection of existing data sources, data stitching and machine learning fundamentals. Next we develop advanced analytics functionalities to derive insights & attributes for automated segmentation. Beside the technical setup we also implement adapted routines and processes across teams and partners for the usage of the CDP. After the implementation phase, we activate the CDP by realizing the previously defined data-driven use cases jointly with internal teams and external partners. To ensure the success of our CDP solution, we validate the impact of prioritized use cases against pre-defined KPIs and continuously refine and evolve the technical setup and the client teams. With this three-step approach we ensure that the full potential of our solution is realized – enabling our client to become truly insight-driven."
Which capabilities do we bring in to support our clients end-to-end?
"We are bringing in a wide range of capabilities that enable us to support our clients in setting up customer data platforms. With our long-standing premium partnerships with platform providers like Google, Salesforce, Adobe, SAP and Oracle we have in-depth technical expertise for each platform that enables us to develop and implement innovative business solutions and integrated platform architectures for any technical stack - creating individual and impactful experiences across all touchpoints through state-of-the-art customer data platforms.
However, it’s not only about implementing the right technology, but also about enabling our clients to use it correctly. Drawing on our experience in leading large-scale projects in technology and organizational transformation, we help our clients to adapt new ways of working and thinking across multiple teams and hierarchical levels. We offer hands-on support for client teams and their agency partners during the operative ramp-up phase with experience in digital marketing & communication. Moreover, we also cover legal and data privacy competencies, which are becoming increasingly important in the world of digital platforms. Deloitte’s Cyber Risk Services and Legal branch established a dedicated team for the Center for Data Privacy that bundles interdisciplinary competences to develop client-centric solutions with regard to legal, technical, organizational and procedural issues."
Can you give us practical examples of benefits clients can gain from implementing/using digital platforms?
"A customer data platform (CDP) promises what marketers have always dreamed of: complete customer profiles – meaning all data and information collected about one customer is consolidated to gain a 360° view of that customer. As the linchpin of customer-centric marketing, this comprehensive understanding of a customer opens up new opportunities for customer engagement. This demonstrates a key benefit of a CDP: the ability to integrate an increasing number of data sources and to stitch this data together to one single view of customer.
There are also multiple benefits of using a CDP which are quantifiable, with a measurable impact on the client’s business. For example, by generating valuable insights from the collected data using advanced machine learning models, better and more specific targeting can be achieved. This leads to a more efficient marketing spend and therefore an improved advertising ROI. Expressed in a measurable KPI, an improvement of 70% in the opening rates of emails could be realized by companies using CDPs. The utilization of detailed user data also has a direct effect on the sales data.
Through tailored next best offers based on advanced user insights and the ability of real-time response to customer’s actions, an increase of the conversion rate by 20% as well as an increase in the order value by more than half could already be measured in several CDP use cases. The individual approach made possible by using customer profiles also has a very positive effect on customer loyalty. This does not only significantly increase the probability of purchase, but also the probability of a recommendation and the trustworthiness – enabling clients to become a truly customer-centric organization."
Can you give us examples of use cases that leverage customer data using a digital platform?
"There are several use cases which demonstrate how customer data platforms enable companies to leverage their data effectively. As I already illustrated in the previous questions, CDPs are able to connect data to a single view of customer as well as to analyze this data using advanced machine learning models and AI. With these capabilities, several use cases can be realized that leverage customer data to achieve real business impacts - such as increase in conversion rates, revenue or other success KPIs. An example use case is the prediction of customer lifetime value: identify high and lower value customers by applying an appropriate machine learning model. This allows companies to identify the customers that will generate higher long-term revenue and to target them accordingly.
Another use case is the prediction of purchase propensity for a more effective cross- and up-selling. By applying purchase prediction models based on past behavior, companies can offer additional products to specific customers with a high purchase propensity. These use cases illustrate how customer data can be leveraged through the use of customer data platform functionalities to increase efficiency in marketing activities – which is highly relevant to be successful in an increasingly data-driven and competitive environment."