Customer acquisition has never been easy, but today, finding and converting new customers is becoming tougher than ever before. Marketing budgets remain heavily weighted towards acquisition, yet marketers are increasingly challenged to find and effectively engage the right prospects.
Several factors have made customer acquisition particularly challenging:
Moreover, major advertising platforms like Google and Meta, with their opaque bidding algorithms and audience expansion settings, frequently encourage rather than prevent media waste, often leading to overspending and inefficiencies.
To navigate these challenges effectively, brands must maximize the value of their first-party data using the right Customer Data Platform (CDP). However, not all CDPs are created equal - those originating from marketing automation systems typically excel in direct channels like email and SMS but fall short in supporting paid media and inbound web and eCommerce channels.
Optimizing these critical acquisition channels demands capabilities like:
These real-time capabilities ensure your marketing is targeted, relevant, and efficient, significantly reducing waste.
Brands that have already invested in a CDP might assume their acquisition use cases are covered, but this isn't always true. A marketing-automation-originated CDP, categorized as a ‘Delivery CDP’ by the CDP Institute, is likely optimized primarily for known-customer retention and engagement rather than anonymous visitor acquisition and paid media efficiency.
Marketing teams invested in these Delivery CDPs will find paid media channel integrations are available as a one way push of ‘known’ customers and prospects (i.e. those that have provide their email or phone number in the past), and find that any on-site personalization capabilities are limited to a single session and not able to recognize an anonymous browser over multiple visits in their journey.
As a result, marketing teams find they have limitations when it comes to use cases related to acquiring more customers, or optimizing Customer Acquisition Costs (CAC).
The CDP Institute highlights that businesses may increasingly turn to multiple CDPs, each specialized for different purposes. This ensures optimal performance across all use cases, particularly in customer acquisition, where real-time data capabilities are crucial.