CDP Payoffs and Pitfalls: Australian brands are slashing customer acquisition costs, gaining behavioural insights, and getting ready for AI in their customer data tech but the devil hits in implementation

Mi3 Audio Edition

Host: Andrew Birmingham, Editor - CX | Martech | Ecom

Two years after a Mi3 published a comprehensive analysis of the customer data market in Australia, we revisited many of the brands we spoke with to assess their progress and measure their return.

Companies that have persevered are realising strong returns and extending beyond their early use cases. But it has often been a hard road to hoe. There are integration and organisational challenges to overcome - and unexpected problems such as bill shock from unanticipated quarterly charges that can run into tens and even hundreds of thousands of dollars.

As to the market, it’s more competitive than ever with the number of CDP vendors active in Australia rising significantly even though the volume of tenders has largely held the line, according to industry insiders. That means competition is heating up.

There are three macro trends – the rise of composable CDPs - we’ll explain that later - and greater CIO control over data infrastructure amid a backdrop of three-year software renewals rolling over and the need to accurately assess ROI for a technology that is often hard to assign direct value against.

Rich McFarland from Compare Club, Courtney Gerrits from the University of Tasmania, and Cam Strachan from Southern Cross Austereo dive deeply into the detail, discussing their experience with their own CDP implementations, describing the tangible benefits gained, such as improved customer acquisition costs, enhanced communication strategies, and increased operational efficiencies…there’s a few lessons they learned along the way to boot too.

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