{"id":26402,"date":"2021-06-24T08:49:32","date_gmt":"2021-06-24T06:49:32","guid":{"rendered":"https:\/\/www.emailvendorselection.com\/?p=26402"},"modified":"2021-06-24T08:49:35","modified_gmt":"2021-06-24T06:49:35","slug":"cdp-vs-esp-decision","status":"publish","type":"post","link":"https:\/\/www.emailvendorselection.com\/cdp-vs-esp-decision\/","title":{"rendered":"Four Simple Steps for making a CDP vs ESP decision"},"content":{"rendered":"\n

If you are a data-driven business, you need to be smart about the platforms in which you invest your martech dollars. Which often starts with decisions regarding your ESP or, more recently, a CDP.  But for marketers today, it’s becoming increasingly unclear: Do you need both a CDP and ESP? And if so, which one to select first?<\/p>\n\n\n\n

Because of the blurred lines between these platforms (see diagram below), the answer isn\u2019t always obvious. A marketer doesn\u2019t want to end up paying for overlapping functionality. Or even worse, spending a lot of time and effort looking into tools they don’t even need. <\/p>\n\n\n\n

We’ve created this simple four step process that helps you go through a combined ESP and Customer Data Platform (CDP) selection.
<\/strong>But first, why are CDPs so popular?<\/p>\n\n\n\n

<\/span>CDP trends and popularity<\/span><\/h2>\n\n\n\n

Customer Data Platform (CDP) mania didn’t reach its peak last year, and so far it shows no signs of slowing down.

Every digital marketer wants one, wants to consider adding one, or is looking for advice as to whether or not he or she needs one.



<\/strong>There is a lot of interest in CDPs, as they promise to be a solution for the elusive challenge to unify all data. But the real question is whether or not you need a CDP to accomplish that!  Because when you look under the hood… <\/p>\n\n\n\n

<\/span>Enterprise ESP and CDP, is there a difference?<\/span><\/h2>\n\n\n\n

In my conversations with clients a light bulb often goes on when we look at the functionalities of both. And they say something like, \u201csay, a lot of that CDP functionality sounds suspiciously like the things our ESP is already doing!\u201d. And you know what? They\u2019re right!

This chart shows the overlap between the platforms, but be aware that it\u2019s an evolving picture and the overlap grows larger every day.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Because there is this overlap between the two types of systems, it\u2019s critical<\/em> to understand what your ESP solution is capable of. There isn\u2019t a CDP in existence that can send email campaigns and automated\/ triggered emails. But there are, as we\u2019ve noted, ESPs that can do a lot of what a CDP does around data unification and aggregation.<\/p>\n\n\n\n

<\/span>Where to start your ESP and CDP search?<\/span><\/h2>\n\n\n\n

Which means if you begin your process with the search for a CDP, you are always going to need to add an ESP as well. But\u2014and this is the critical thing to remember\u2014if you start your process with a search for the right ESP partner, you may not end up needing a CDP at all!<\/em><\/p>\n\n\n\n

There are a couple of reasons why you might not need a CDP.

First, there are a lot of ESPs who now come with what I call a \u201cCDP Inside\u201d. In other words, they have built a fully integrated CDP platform to go along with the ESP platform.

Second, there are many ESPs that have many of the same characteristics of a CDP without necessarily covering all of the bases completely.  But you might not need all the functionalities. In which case a solid ESP is all you need.
<\/p>\n\n\n\n

<\/span>Take your requirements detail from 20 to 200+ lines<\/span><\/h2>\n\n\n\n

Start out with a clearly defined set of requirements. It is the best way to ensure that you aren\u2019t adding platforms to your martech stack that have overlapping capabilities (stop paying double!).

And I don\u2019t mean a list of 10-20 high level requirements. You need to really get into the weeds, in which case you\u2019re more likely to come up with 200+ requirements.

With a good list in hand, it will be much clearer. Once you\u2019ve selected your ESP partner that meets most of those requirements, you can determine which of your critical requirements, if any, have yet to be met. Only then can you reasonably determine whether or not you need to also consider a CDP.<\/p>\n\n\n\n

<\/span>Do you need a CDP? 4 steps to know <\/strong><\/span><\/h3>\n\n\n\n

If you think you need both a CDP and ESP, here\u2019s the order of actions you should follow:<\/p>\n\n\n\n

  1. Create a detailed requirements document for your data management and digital messaging needs<\/li>
  2. Conduct a rigorous RFP to select a new ESP<\/li>
  3. Conduct a gap analysis between the capabilities of your new ESP and your original requirements document<\/li>
  4. If\u2014and only if\u2014there are significant gaps identified in #3, then go ahead and conduct a rigorous RFP for a CDP<\/li><\/ol>\n\n\n\n

    Follow these 4 steps and you can be relatively certain that you won\u2019t be paying for more than your need, or for overlapping capabilities in two separate platforms.  You can put that money to much better use elsewhere in your marketing program!

    Let’s back up a little bit though, because everyone is looking into the CDP market, how do I double check whether or not I need one?<\/p>\n\n\n\n

    <\/span>Grasping the ever-changing definition of a CDP<\/span><\/h2>\n\n\n\n

    To begin evaluating whether or not you need a CDP<\/a>, you first need to know what it is exactly. There is little consensus as to the precise definition of a CDP and it seems to be changing all the time.<\/p>\n\n\n\n

    \"\"\/<\/figure>\n\n\n\n

    For the sake of this article, here is my definition which is also very close to that of the CDP Institute<\/a>.

    For a platform to legitimately claim CDP status it has to:<\/strong><\/p>\n\n\n\n