There are tons of CDP vendors available in the market (see Figure 5.6). Choosing the right one for your organization’s needs is no easy task. We could write a book only on choosing the right CDP vendor!

Figure 5.6: Numerous CDP vendors in the market today and the list is growing every day

However, let us share a few basics to get right while choosing a vendor. One of the common problems found in companies across the globe is that vendor selection is made by individuals or teams who have little idea of the real requirements. They choose a vendor based on either the cost of ownership or if that application is popular among the peer companies. However, every company’s needs are different, even if they are in the same industry. So, companies need to carefully consider before choosing a vendor.

Here are a few points you should remember while choosing a CDP vendor:

  • Vendor Selection Team: The vendor selection team should not only have the purchasing team members and the senior executives but also other business stakeholders who are going to be benefitted out of the system. If you involve your project team early, they will be invested in the decision. Business stakeholders will know which CDP can fulfill their needs and their inputs are invaluable in choosing the correct vendor.
  • Scalability and Performance: Consider the scalability and performance of the vendor’s CDP solution. Will it be able to handle your current data volume and future growth? Look for performance benchmarks and customer testimonials to gauge their capabilities.
  • Privacy and Security: Data privacy and security are crucial considerations. Review the vendor’s data governance policies, compliance with regulations (such as GDPR or CCPA), and security measures to protect customer data.
  • Integration Ecosystem: Assess the vendor’s integration capabilities with other marketing and analytics tools. A robust integration ecosystem allows you to leverage your existing technology stack and ensures smooth data flow between different systems.
  • Pricing and Cost: Consider the cost of the CDP solution and evaluate it against the value it offers to your business. Compare pricing models, such as subscription-based or usage-based, and ensure there are no hidden costs

Based on these factors, you can create a vendor evaluation framework and assess different CDP vendors against your specific business needs. Conduct thorough research, request demos, and engage in discussions with the shortlisted vendors to make an informed decision.

Depending on your business needs, the technical talent available, and the degree of control you want to have on the CDP, you can choose between:

  • Martech Suits
  • Engagement-oriented CDP
  • Data management-oriented CDP