Impending Boom: The Customer Data Platform Market Sees More Growth Ahead
The customer data platform (CDP) market has grown significantly and is expected to grow at even greater rates in coming years. MarketsandMarkets™ predicts that the CDP market size will rocket from $3.5 billion in 2021 to $15.3 billion in 2026. Let’s look at what a customer data platform is and why it continues to rise in popularity among enterprises.
What Is a Customer Data Platform?
A customer data platform by definition is a unified customer database capable of building rich, consistent customer profiles using data from external and internal sources. A CDP ingests, prepares, and unifies data to form individualized customer profiles. These profiles become the single source of truth for marketing, sales, and support teams. CDPs eliminate silos and expedite initiatives like personalization, customer journey orchestration, CX optimization, and more.
Customer Data Platform Market Drivers
CDP capabilities are becoming a must-have for companies competing in the increasingly digitized consumer landscape. This is especially true for large enterprises, among which MarketsandMarkets™ predicts the CDP’s popularity will grow at a faster rate thanks to its cloud-based solutions that enhance performance and productivity.
Below are the major drivers behind the growth and popularity of CDPs:
Multiplying Digital Channels
Consumers are generating more data than ever across myriad channels and touchpoints. Piecemeal solutions that collect data from only one type of channel, like customer records or social media, hinder a 360° view of customers’ actions.
A CDP extracts the maximum value from customer data as it collects information from all sources, including:
- Online. Website traffic and activity, customer behavior and interactions on digital channels
- Offline. In-store traffic, customer visits to physical stores, records from legacy systems
- Mobile. Customer activity on mobile sites and apps
- Customer service. Customer transactions with support agents
- Sales. Purchase histories, customer prospects, and leads
- Second- and third-party sources.
Enterprise-grade CDPs are also built to ingest bulk, streaming, and real-time data to create an accurate picture of customers’ identities and activities.
Increased Marketing and Advertising Spend
The average person sees hundreds to thousands of ads per day thanks to digitized consumer channels. With more brands reaching out to the same audiences, companies are spending more to ensure their advertising and marketing are not only better, but smarter.
CDPs have been proven to generate positive ROI in marketing and advertising through:
- Personalized ads
- Precise audience segments
- Targeting smaller audiences within larger campaigns
- Unification and de-duplication of customer profiles for cost savings
Advanced CDPs enable companies to deliver dynamic personalization—targeting the right person with the right ads or marketing action at the right time.
Rising Value of Customer Insights
Companies not only thrive on business intelligence but ‘customer intelligence’ as well. Brands that are able to extract customer insights understand who their audiences are and why they act the way they do.
Organizations can use CDPs to:
- Centralize customer data and resolve identities
- Track customer journeys in detail, from awareness to engagement to conversion or rejection
- Analyze customer data deeply using Machine Learning (ML) techniques
- Derive actionable insights and apply the Next-best Action (NBA)
A CDP’s capabilities place companies in a better position to make data-driven decisions that result in successful conversions.
Tightening Regulatory Scrutiny
More than two-thirds of countries the world over must comply with data privacy laws. More legislation on data privacy and security is in the works, putting pressure on companies to comply with expanding regulations. Failure to comply means facing the risk of huge penalties, financial losses, damaged reputations, loss of consumer trust, and operational downtime.
CDPs help companies navigate a complex regulatory landscape by centralizing data and establishing security safeguards to protect privacy. Topline CDPs are also developed according to a privacy-by-design principle, building transparency and accountability into the heart of data management. This gives businesses another layer of security as they prepare to meet and exceed regulatory requirements for data privacy in the coming years.
A CDP’s capability to deliver tailored solutions according to a business’ growing needs is unmatched by any legacy system. Cloud data solutions and services make it easy for companies to adjust their capacity as audiences increase or decrease. Topline CDPs are also designed to work with both legacy systems and new marketing apps, enabling companies to maximize their existing martech stack.
The ability to scale according to a brand’s changing needs will be critical to achieving—and excelling at—these essential business functions:
- Operational efficiency
- Maintaining data quality
- Marketing effectiveness
- Business agility
- Better risk management
In summary, a CDP’s capabilities meet enterprises’ modern needs in an increasingly digitized landscape. CDPs give businesses the ability to centralize data collection and management, improve marketing and advertising, enhance data privacy and security, acquire actionable insights, and adapt to changing business needs. The customer data platform market will continue to grow as data becomes more important to business success and effectiveness.
Get Instant Value From Treasure Data’s CDP Solutions
Treasure Data Customer Data Cloud has made its mark in the customer data platform market. Our best-of-breed, enterprise-grade customer data platform is trusted by Fortune 500 and Global 2000 companies around the world to maximize their data’s potential and drive results.
Treasure Data helped AB InBev unify 1,000+ data sources and manage over 70 million customer records to achieve greater personalization at scale.
Treasure Data helped Subaru optimize ads and achieve a 350% increase in ad click-through rates based on customer behavior and demographic data.
With the help of Treasure Data, PARCO derived actionable insights that increased store visits by 35% and in-store purchase rates by 25%.
Check out more of our customer success stories here.
See what you can do with Treasure Data:
- Collect and centralize customer data from all sources
- Unify customer profiles using online + offline data
- Analyze customer journeys
- Derive actionable customer insights using Machine Learning techniques
- Personalize customer experience at all customer journey stages
- Optimize advertising and marketing campaigns
- And more
To learn more about how you can use Treasure Data’s Customer Data Cloud to maximize your data’s potential and drive results, consult an expert today. Want to learn more? Request a demo, call 1.866.899.5386, or contact us for more information.