Marketers in the financial services sector has been seen many a times confused when it comes to build or buy a customer data platform. It is quite difficult for them to evalute the entire process without knowing in-depth information about it. So, lets get
dive into the differeneces, pros and cons for buy or build customer data platform
Factors to consider before Buying or Building a Customer Data Platform:
1. CDP capabilites and requirements are a financial marketer is looking for.
2. Availability of Resources and Technology
3. Time to market: How urgent it is for a company to implent a CDP
a company (<9% of revenue) spent on marketing should Buy CDP and
(>15% of revenue) spent on marketing should consider Building a CDP in-house.
For Buying a CDP,
Time taken to buy a CDP is 4-5 weeks which is subjected to integrations.
Some pros for buying,
-You can have access to the best vendors in the respective industry.
-You can be dependent on the vendor for the roadmap vision.
-You don't need much of IT development.
-The process of evaluating a vendor is lengthy.
-Vendor dependency is the major drawback.
-Predefined functionality doesn’t cover the 100% requirements.
For Building a CDP,
Some pros for building,
-You will have the advantage of full ownership of the code.
-Road map vision is completely dependent on the organization.
-You can customize the software based on the business.
-Additional expenses would be required for maintaining the systems.
-Risk of technology being outdated.
A CDP has become a crucial digital tool for marketers to manage customer data. According to a recent report, the global customer data platform market is expected to reach $3.3 billion by 2023. Marketers need to evaluate
buy or build cdp properly. As companies scramble to implement a CDP, the buy vs. build factor is a major roadblock.