Are customer data platforms affordable?

This obviously depends on who you are talking to, but if you are a typical large US enterprise then something around $1m per annum for your CDP would be regarded as quite reasonable.

Not many UK companies would be happy to pay that much, even if it did only amount to a few pence per customer.

We are concerned that there is a perception that CDPs are like private jets, the preserve of the very rich.

In reality CDPs come in many shapes and forms and to some extent this affects what they cost.

We would like to feel that our cloud-based customer data platform is both functionally very rich, and at the same time extremely affordable. For instance, if you have 100,000 customers, would paying 27p per customer per annum be too much?

But more importantly than the cost, CDPs if deployed well are a great investment. For instance, if your average margin on goods you sold was £20, then you would only have to sell one extra item for one in every 75 of your 100,000 customers to pay for your CDP.

Our clients have given us feedback on their returns from investing in our CDP, and they are seeing an increased contribution of between x4 and x8 the cost.

We offer a free business evaluation service where we help you identify the use cases for a CDP, and then quantify the results.

Would you like to arrange a chat with us about this? Just email us and we can arrange a Zoom meeting.


UniFida logo

UniFida is the trading name of Marketing Planning Services Ltd, a London based technology and data science company set up in 2014. Our overall aim is to help organisations build more customer value at less marketing cost.

Our technology focus has been to develop UniFida. Our data science business comes both from existing users of UniFida, and from clients looking to us to solve their more complex data related marketing questions.

Marketing is changing at an explosive speed, and our ambition is to help our clients stay empowered and ahead in this challenging environment.


Are you making customer value metrics the backbone of your marketing?

It’s intuitively obvious that they should be, but what may not be so clear are which actual metrics you need, and how to connect them to different areas of your business decision making processes.

Let’s take four key ways in which you can take advantage of customer value metrics:

1. High level business planning

Your turnover is equal to the sum of the customer value provided in any period. So, to look forward to how your customer value is going to be provided in the future you need to be able to project from your current customer base, remove those that are going to attrite, and add those that you are going to recruit.

The metric to support this is the average value per customer in each year since they were recruited. So how much value in their first, second third year etc. This allows you to very easily roll customer value forward for planning purposes.

When you start from your planned turnover in say next year, you can then tell how much of that is going to be provided by the exiting customer base, and how much will need to be provided by how many new recruits.

You will also want to apply some assumptions about how value is going to be altered by improvements to the way you look after your customers, and then you will have the basics of a customer-based business plan.

2. Understanding which customer groups provide what level of value

You will be very aware that not all customers are equal when it comes to their level of spend with you.

So, you will need to dissect your average customer value by the type of customer they are. Factors such as age, gender, and product categories purchased can all be used to profile the value of your customers.

The benefit then is that you will know what groups to target your recruitment efforts at.

3. Examining the customer value provided by different channels and media 

This type of analysis leads you directly to understanding the ROI provided by different channels and media.

Indeed, we like to use a metric which is the amount of longer-term customer value derived from every £1000 spent in a particular recruitment mode.

You can undertake this at a very micro level, such as individual media, or more macro level, such as a channel.

There is though a caveat; many customers are now recruited as a result of contacts from multiple channels. However, this does not prevent you from looking at the customer value obtained from each recruit for whom the channel has played a part.

4. Where to focus retention?

This is a harder question to answer as your higher value customers will often be the most loyal.

What you need to know is which of your higher value customers are more at risk than others.

For this you will need an individual level predictive model for risk of attrition with which to score customers, and find the higher value, higher risk, group.

Some conclusions

– Understanding all aspects of longer-term customer value is critical for every successful marketeer.
– To achieve this, you need a single customer view that can track customer behaviour through time.
– You will then need to be able to obtain the metrics.
– It won’t come as a surprise to regular readers of our newsletters that our customer data platform UniFida has been designed to provide most of the metrics we have been describing on demand.

In some cases further analysis will be required, and our data scientists are happy to help with this.

If you would like to talk to us about how to get the customer metrics you need, then please email to say when and how you would like to be contacted.


UniFida logo

UniFida is the trading name of Marketing Planning Services Ltd, a London based technology and data science company set up in 2014. Our overall aim is to help organisations build more customer value at less marketing cost.

Our technology focus has been to develop UniFida. Our data science business comes both from existing users of UniFida, and from clients looking to us to solve their more complex data related marketing questions.

Marketing is changing at an explosive speed, and our ambition is to help our clients stay empowered and ahead in this challenging environment.


What can possibly go wrong when I allocate my marketing budget according to campaign ROI?

Well, depending on exactly how you do that, quite a lot actually!

Let me give three examples:

1. If you approve any campaign expected to provide an ROI > X you may be approving campaigns for which there may be alternatives that yield better X+++ returns. These may be different types of campaign with the same objective, or for instance the same campaign but just run at a different time of year.

2. It’s well known that all channels can suffer from over-use or saturation, at which point their ROI will start to drop. Just think of the irritation caused by a TV advert repeating too often. But if you cannot tell what the cumulative ROI of all your campaigns in a channel is, how are you going to be able to measure this effect, and know when to reduce spend in one channel or increase it in another?

3. Campaigns don’t just happen in isolation; they happen within the context of all the other campaigns that are happening at the same time, each of which may have an impact on a potential customer. Hence you spend on DRTV will impact your returns from direct mail or door-drops. Understanding the impact of your main channels on other channels can become critical.

So how to resolve these factors, and get to the point where your marketing budget allocation takes account of them?

We have developed a process, and related technology, that is designed to help you get to this point. The way it works in detail varies with each client, because no two clients share the same marketing campaign mix, but the outcome will be that you have a marketing budget that should get you the best possible return.

Contact us for more information and a no-obligation chat.


UniFida logo

UniFida is the trading name of Marketing Planning Services Ltd, a London based technology and data science company set up in 2014. Our overall aim is to help organisations build more customer value at less marketing cost.

Our technology focus has been to develop UniFida. Our data science business comes both from existing users of UniFida, and from clients looking to us to solve their more complex data related marketing questions.

Marketing is changing at an explosive speed, and our ambition is to help our clients stay empowered and ahead in this challenging environment.


UniFida partners with Tableau for developing data insights at speed

Following a market review we have picked Tableau as UniFida’s data analysis partner.

UniFida can build your customer data platform, whilst Tableau helps you understand it.

Tableau logo

Tableau has been labelled as a leader for a fifth consecutive year in the Gartner Magic Quadrant for business intelligence.

UniFida users will discover that they can seamlessly use Tableau for their data analysis and visualisation.

Our head of Data Science Anthony Antoniou likes Tableau because its speed of handling large data sets, its ease of data integration, and the simplicity of building new dynamic analyses.

If you would like to discuss how UniFida + Tableau can help your organisation please contact us.