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Choosing between a CDP, marketing automation platform, or hybrid system

On the last episode of Auto Marketing Now, we discussed some of the building blocks of Customer Data Platforms (CDP), and how they can identify users and entities. In this installment, Brian Pasch discusses the differences between using a CDP, marketing automation platform or a hybrid of the two.

Many of the bigger dealership groups rely on large CDP corporations for resolving and handling their customer data. While these massive companies offer stability and experience, they are also quite expensive. Smaller dealer groups may find it difficult to justify the high cost, especially when new, cheaper platforms are launching on a regular basis. However, Pasch notes that these industry newcomers come with their own set or risks, such as closures and buyouts, which can jeopardize their client’s data.

Marketing automation platforms take information collected by CDPs and activate it on marketing channels. By analyzing the consumer data, these services can automatically target users on social media through advertisements and other content. Pasch explains that while many providers exist, only a few are focused on the auto industry, making it difficult for dealers to find a product which works for their market.

Companies which offer both marketing automation and CDP services are called hybrids. Pasch explains that these platforms can be especially beneficial to small and mid-size dealership groups. For one, they can be more budget-friendly, since clients only have to pay for one product. Second, hybrids designed to work for the auto industry have a better understanding of how car buyer data can be used, and what restrictions exist for dealers.

However, while hybrids present an excellent opportunity for most dealership groups, Pasch notes that the features included in these platforms vary from brand to brand. This means that dealers will need to thoroughly research their business partners when selecting a CDP and marketing automation provider. Not only should retailers focus on picking the right solutions for their market, they should also verify that the company has a long term vision for the product, and will continue to expand or improve their services as the years go by. To hear more of Pasch’s insights on CDPs, visit his website to read his latest report.

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Brian Pasch
Brian Pasch
Founder of PCG Companies and BPE Enterprises, Brian Pasch is a thought leader, effective strategy driver, and industry change agent. In tune with the fast pace of the digital marketing environment, he successfully leads OEMs, dealers/dealer groups, and ad agencies by helping them harness data, eliminate waste, and incorporate efficient marketing tactics.

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