In today's business environment, which is increasingly omnichannel and digitally reliant, successful marketers capture, analyze, and leverage data to create timely, personalized interactions across every customer touchpoint. is required to provide.
With uncertainty surrounding everything from war to global warming to the economy dominating the headlines, customer data platforms are increasingly seen as an essential part of the martech stack. Meanwhile, the boom in artificial intelligence and machine learning has seen vendors enhance the capabilities of these platforms in a variety of ways, making their value propositions even more attractive.
One of the factors driving this trend is the growing importance of customer experience (CX). CX is improved through timely data collection, AI-assisted segmentation, and interaction personalization. According to Forrester Research, 75% of the world's 100 organizations say CX is a top priority.
At the same time, marketers are facing a gradual but seemingly inevitable loss of third-party data as fuel for marketing programs. Therefore, companies are turning to CDPs to help them increase the amount of first-party data they hold and engage in privacy-compliant practices such as sharing through data clean rooms.
Let's take a closer look: Does your company need a CDP?
Market to triple by 2028
According to a recent report from Mordor Research, the global market for customer data platforms is expected to triple in size by 2028 (see Figure 1). Annual spending on CDP is projected to increase from $2.13 billion in 2023 to $7.91 billion in 2028. North America is expected to account for the largest share of the market, while Asia Pacific is expected to grow the fastest.
CDP market maker
Here are some of the key players in the CDP market space.
action iq
ActionIQ specializes in the enterprise market across a wide range of industries. We employ specialized teams to handle regulated markets such as financial services.
ActionIQ CX Hub provides a modular, scalable solution that can be customized to meet the needs of enterprise clients. The software offers three architecture options, allowing IT teams to choose the approach that best suits their organization.
The software consists of modular solutions such as Customer Data Platform, Audience Builder, Journey, Identity, and Real-Time CX that can be easily added to or expanded to meet changing customer needs.
Adobe Real-time CDP
Adobe typically targets enterprise and mid-market organizations and works with a variety of roles across marketing and IT organizations.
Adobe's Real-Time Customer Data Platform (Real-Time CDP), built on Adobe Experience Platform, provides a complete foundation for data management, built-in governance controls, and practical integration profiles. It helps businesses understand and connect with their current and potential customers.
Real-time CDP is available in B2C, B2B, and hybrid editions, allowing organizations to create unified profiles for consumers and accounts and personalize them in real-time across all channels.
blue conic
For B2C and B2B companies with extensive experience across consumer goods, retail/e-commerce, media, publishing, telecommunications and financial services sectors.
BlueConic's pure-play CDP provides transformation-minded organizations and their growth-focused teams, including marketing, e-commerce, digital products and experiences, and analytics, with access to unified, actionable, and privacy-compliant first-party customer data. designed to provide.
Salesforce Data Cloud
Targeted at high-growth companies to enterprise-level organizations across all industries, market segments, and geographies.
Salesforce's Data Cloud is a hyperscale, real-time data platform that enables businesses to leverage their data by delivering highly personalized experiences that adapt to customer behaviors and needs in real time.
treasure data
Treasure Data focuses on companies such as Global 2000/Fortune 500 companies. Key verticals include Retail/CPG. health care; media and entertainment; technology; financial services; automotive; and travel and hospitality.
Treasure Data's customer data platform is designed to integrate into complex technology environments and is vendor-neutral and open by design. It includes a data lake that can process petabytes of compressed data, ingest more than 2 million records per second, run 1 million queries per day, and manage customer data of any size. contained.
Twilio Segment
The Twilio segment serves both B2B and B2C organizations. The company works with large companies in retail, technology, media, healthcare, and finance. We also address the needs of mid-sized companies that are rapidly expanding their scale and growing through venture investments.
Segment gives businesses a complete, real-time view of their customers, allowing them to easily build targeted campaigns and predictive audiences to orchestrate multichannel journeys that deliver personalized experiences. Masu.
Looking for a CDP? Download our buyer's guide now to learn everything you need to know.
CDP trends
Data shows enthusiasm despite forecasted increase in spending on customer data platforms
Implementing and fully using CDP is contradictory.
According to the CDP Institute, an independent industry association made up of CDP and other martech vendors, agencies and CDP users, more respondents to its annual member survey will have a unified customer database or CDP in 2023 compared to 2022. Few respondents reported having one.
The number of people who say they have a unified customer database has decreased from 38% in 2022 to 33% in 2023.
Those reporting having implemented a CDP decreased from 31% to 25%.
This is a strange development and marks the first time this percentage has fallen.
The organization began its investigation in 2017. A possible reason for the reported decline in integrated customer databases/CDPs is that marketers who once thought they had integrated customer databases now realize that their data is not as integrated as they thought. It may mean that you are aware that it is not there.
The phasing out of third-party cookies is prompting soul-searching and strategic changes among marketers looking to increase the quantity and quality of data available for targeting and personalization. Many people are re-evaluating their data situation after relying on third-party cookies for an extended period of time, knowing that they will eventually have to deal with the reality of their disappearance.
Learn more: Real-time customer data platforms: promise and reality
AI and machine learning revolution
Incorporating AI makes personalization even more powerful and helps marketers identify.
Identify profitable segments and deliver personalized content to them. Content personalization is
According to the PwC CMO, most organizations are currently leveraging AI to:
Survey, Fall 2023.
The degree to which this and other AI and ML capabilities are integrated into today's CDPs varies. Predictive AI and machine learning have long been utilized by CDP vendors, but the boom in generative AI and subsequent adoption by marketers has led to more and flashier integrations.
This makes a lot of sense given that these technologies are powered by vast amounts of data, and CDPs act as centers for that kind of data within the enterprise.
Much of the use of AI and machine learning in CDPs happens behind the scenes, with vendors using advanced models to cleanse and normalize data, surface audiences based on their likelihood of responding to specific offers, and Drive attribution models and testing.
When it comes to generative AI, CDPs are still in the early stages of exploring how they can enhance their services. Based on discussions with vendors, we expect to see more innovation in this space in the coming years.
One upcoming development is a chat interface that allows marketers to ask questions of CDP data in natural language and receive answers in both text and data visualization, and some vendors already offer this. Masu. Some companies are implementing natural language interfaces to improve usability and reduce the steps users need to take to accomplish their goals. Additionally, some campaign-oriented platforms integrate content creation via large-scale language models (LLM) for image or text generation, which can be used to develop advertising campaign creatives and email marketing messaging. will be done.
It fuels your marketing strategy.
