CDP and AI: hype or valuable combination?

CDP and AI: hype or valuable combination?

AI is everywhere. From chatbots to personalized product recommendations, artificial intelligence is transforming marketing. Even within Customer Data Platforms (CDPs), AI is increasingly popping up. But is this a gamechanger or mostly a nice promise?

It is becoming increasingly clear where AI within a CDP really makes a difference. Because while the possibilities seem endless, the practice is often more unruly. In this blog, I take you through the real impact of AI within a CDP and where it does - and does not - work.

AI in CDP’s: de beloftes en de praktijk

Many CDP vendors flaunt AI functionalities. The promises sound appealing:

  • Automated segmentation: AI discovers patterns in customer data and creates segments that marketers themselves might not have seen.

  • Predictive analytics: Which customers are in danger of dropping out? Which ones are ready for an upsell?

  • Geavanceerde personalisatie: AI bepaalt op individueel niveau welke content of aanbieding het beste past.

  • Smarter campaigns: Automatically optimize campaigns based on real-time behavioral data.

Sounds good, right? But in practice, you often see that marketers can't make full use of the promises. Why is that?

De realiteit: AI is zo goed als je data

De kracht van AI staat of valt met de kwaliteit van je data. Hier ligt meteen de grootste uitdaging:

Many companies have data silos: customer data is scattered across different systems and departments, lacking a complete customer view. AI also needs sufficient and well-integrated data to deliver reliable insights. Small, fragmented data sets often yield less valuable results. It is therefore crucial to first get your data household in order. A CDP can help to combine and structure data from different sources. This is exactly where experienced CDP vendors such as Ternair can make a difference. Without strong data foundations, AI remains a nice promise without real impact.

Where does AI within a CDP work?

When the basics are in place, AI within a CDP can indeed add value. A few practical examples:

  • Predicting Churn: AI analyzes behavior patterns and identifies which customers are in danger of quitting.

  • Optimale verzendtijd berekenen: AI bepaalt het beste moment om een e-mail of pushbericht te versturen.

  • Dynamic content personalization: AI automatically matches website or email content to a visitor's behavior and preferences.

  • Create lookalike audiences: AI finds new customers similar to your current/most valuable customers.

AI en privacy: een spanningsveld

AI-driven personalization sounds great, but what about privacy? Regulations such as the AVG/GDPR place strict requirements on the use of customer data. Companies must be transparent about how AI makes decisions and ensure that their models do not contain unintended bias or unequal treatment. Trust and responsible data analysis are essential here.

Conclusion: no magic, but potential

AI within a CDP is not a panacea, but it can be valuable provided the data fundamentals are right. Companies that invest in data quality and integration will reap the benefits of AI-driven insights and personalization. Without that foundation, AI remains primarily a future optimization step.

Yet this does not mean that you should wait with a CDP until your data is in perfect order. A CDP actually helps to bundle fragmented customer data, automate processes and quickly extract value from your data. Without direct AI involved, you can already make segmentations, personalize campaigns and make data-driven decisions. AI can then be the next step to make further optimizations.

Want to get started with AI in your CDP? Then start by optimizing your data housekeeping. Because without strong data, no smart AI.

Discover Ternair

Data collection, editing, segmentation, personalization

To help companies organize and leverage their customer data, a Customer Data Platform (CDP) provides the solution. But how exactly does a CDP function?

Do you want to know more about how we handle your data? Read our privacy statement.