CDPs and Data Clean Rooms: Perfecting Identity Resolution

The trend of combining Customer Data Platforms (CDPs) with data clean rooms is gaining traction as marketers strive to perfect identity resolution. This trend is happening now because of the increasing importance of first-party data strategy and data privacy regulations like GDPR and CCPA. Companies like Adobe, Salesforce, and SAP are already investing in CDPs and data clean rooms to improve their identity resolution capabilities.

What sets this trend apart from past cycles is the focus on data privacy and security. In the past, companies were more concerned with collecting as much data as possible, without regard for how it was being used or protected. Now, with the rise of data privacy regulations, companies are being forced to be more mindful of how they handle customer data. This shift in focus is driving the adoption of CDPs and data clean rooms, as companies look for ways to balance their need for customer data with their need to protect customer privacy.

Early adopters of this trend, like Disney and Walmart, are already seeing the benefits of using CDPs and data clean rooms to perfect identity resolution. These companies are able to create more accurate and comprehensive customer profiles, which allows them to provide more personalized and effective marketing campaigns. On the other hand, laggards are struggling to keep up with the changing landscape of data privacy and identity resolution. These companies are often relying on outdated methods of data collection and management, which can put them at risk of non-compliance with data privacy regulations.

To adopt this trend, companies can follow a three-step framework. First, they need to assess their current data management capabilities and identify areas for improvement. This includes evaluating their current CDP and data clean room capabilities, as well as their overall data governance and security practices. Second, they need to invest in the right technologies and tools to support their identity resolution efforts. This may include investing in a CDP like Agilent or Tealium, or a data clean room like InfoSum or Habu. Third, they need to develop a comprehensive data strategy that balances their need for customer data with their need to protect customer privacy. This includes developing clear policies and procedures for data collection, use, and management, as well as establishing a culture of data privacy and security within the organization.

Of course, there are times when it’s okay to ignore this trend. If a company is already handling customer data in a responsible and secure manner, and has a solid identity resolution strategy in place, they may not need to invest in CDPs and data clean rooms. Additionally, if a company is operating in an industry that is not heavily regulated by data privacy laws, they may not need to prioritize identity resolution and data privacy. However, for most companies, perfecting identity resolution through the use of CDPs and data clean rooms is a critical step in building trust with their customers and staying ahead of the competition.

For more martech analysis, tools coverage and strategy guides, visit MartechXpert — your independent source for marketing technology insight. By staying up-to-date on the latest trends and technologies, companies can make informed decisions about their martech investments and stay ahead of the curve in the ever-changing world of marketing technology.

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