What is the future of ESPs in the face of the emergence of Customer Data Platforms (CDPs)?

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pappu9268
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What is the future of ESPs in the face of the emergence of Customer Data Platforms (CDPs)?

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There have been two major turning points in the history of Email Service Providers (ESPs) that marked significant advancements in their functionality. The first came with personalization, segmentation, and the ability to work with dynamic content . These advances allowed marketers to tailor content and offers to different audiences, leading to a better user experience and improved results (measured in engagement and conversions).

In a second phase, around 2000, ESPs began to introduce functionalities that allowed automated sending based on user behavior on the web and e-commerce (journey drawing and creation of trigger emails). In addition, we began to see how some providers transformed the classic ESP into a platform open to other channels such as SMS, Mobile Push and in some mexico mobile phone number list cases also to the web (pop-ups, site customization, recommendations, etc.). In parallel to these developments, the category of “Marketing Automation” emerged strongly in the industry. This is an evolution led by companies that saw an opportunity to improve marketing and sales processes in B2B environments. Tactics such as lead nurturing, lead scoring, the creation of personalized landing pages and strategies such as inbound marketing are part of this universe.

Despite the great progress made by ESPs (some of which are integrated into different Marketing Clouds) and the increase in capabilities aimed at making marketing more personalized in terms of content and automated in terms of management, the adoption of these advances by marketers is slow. This is not surprising; the massive adoption of new technologies in companies takes time .

The Customer Data Platform (CDP)
More recently, the MarTech industry has seen the emergence of a new category, the so-called CDP (Customer Data Platforms) .

In short, CDPs are a type of database software in which unified customer and user records are created (first-party data). A CDP creates a complete picture of users at an individual level . This 360-degree view can be used by integrated marketing automation tools to run campaigns and analyze results.

We believe that in the future it is very likely that the current role of ESP/Marketing Cloud as the centre of marketing campaign management will tend to take a backseat as a complement to CDPs.

While ESPs have evolved significantly since their inception, as we've already mentioned, they have the limitation of not allowing for a single view of the customer (nor were they created for this). To achieve this 360º view of the user, you need to have a central location that feeds from different data sources. This is essentially a CDP.

The main characteristics of a CDP that differentiate it from an ESP are:

Unified customer data: The CDP stores all customer data in a centralized location (web visits, amounts, transactions, SKUs, session duration, interactions with the SAT, etc.).
Cross-device tracking: takes into account customer data in each interaction and is able to identify the user when he or she interacts from different devices (tablet, personal computer, work computer, App).
Real-time capabilities: The CDP has the ability to incorporate real-time data, for example, website clickstream or in-app behavior.
Data segmentation and activation: the CDP allows you to segment and profile data for activation in campaigns, for example, Email Marketing.

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CDP Schema. Digital Response
The major marketing clouds (Oracle, Salesforce, and Adobe) are actively developing CDPs to be available in their ecosystems. On the other hand, many independent marketing platforms with functionalities that overlap with CDPs are in the process of rebranding themselves to fit into the orbit of this new category.

Aspects such as functional organisation, leadership, or the difficulties of managing the digital ecosystem and the need for talent to carry it out, are the main obstacles that companies that opt ​​to adopt an omnichannel strategy focused on the customer will have to overcome.

At Digital Response we are fortunate to work with companies that are committed to giving users the best possible experience. In fact, we are involved in some major projects that give us a privileged view of how companies and technology providers are approaching this paradigm shift.
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