WhaWhat det dettermines ROIermines ROI?? Cost savings As with any new software, cost significantly determines which •• RReduce teduce tech spendech spend — consolidate your tech stack and brand to purchase, let alone if it’s in the budget or if you can increase your leverage with vendors afford one. There are a few factors to consider when choosing •• RReeturn on ad spendturn on ad spend — Get more out of your advertising with how much you can afford for a CDP. better targeting •• Time-savingsTime-savings — Look for a decrease in time-to-deploy The first step is assessing your overall marketing technology campaigns and time spent pulling reports and lists and software budget. This will give you a sense of how much across teams you can afford to spend on a CDP. While a CDP may not replace any current software, it may allow you to decommission some functionality in other platforms, which could be cost-saving. Revenue As stated earlier, you need to consider your business needs and goals. What are you looking to achieve with a CDP? How will •• CCLVLV — Better targeting and a single view of the customer it help your business? Knowing your goals will help determine can help improve repeat purchase rates, average order how much you are willing to invest in a CDP. value, and loyalty program sign-ups •• InvInvenenttory opory optimizatimizationtion — Analyze shopping habits to have CDPs can vary in price, with some charging based on the the right products in the right places and predict demand volume of data they store and process and others charging •• PPartner engagemenartner engagement t — Monetize your customer data for a flat or subscription fee or even a per-person fee. It is your channel partners as a new revenue stream essential to understand the pricing model of the CDPs you are considering and how it aligns with your budget. You also want to plan for future expansions when considering the cost structure. Finally, consider a CDP’s value to your business. How will it help CX you achieve your goals and improve your marketing efforts? Is the cost justified by the value it will bring? •• Churn rChurn raatte e — Reduce your churn rate through providing a more personalized experience Determining how much you can afford for a CDP will depend •• CusCusttomer saomer satistisffaction action — Improve customer satisfaction by on your budget, business needs, the pricing model of the empowering your organization to operate from the same, CDPs you are considering, and the value they will bring to your single view of the customer — providing more personalized business. It may be helpful to do some research and compare support across the entire customer journey the features and pricing of different CDPs to determine which one is the best fit for your needs and budget. stitch.cx | 12