Emerging Trends in Customer Data Platforms Revealed

Emerging Trends in Customer Data Platforms Revealed

The Customer Data Platform (CDP) industry is experiencing a transformative phase, moving towards new users, industries, and geographical regions. This shift marks a potential second wave of growth, as highlighted by recent surveys from the CDP Institute.

In recent years, a notable advancement has occurred in customer data unification. Over half of the surveyed participants (57%) claim they have developed a unified customer database. Additionally, 68% affirm that they have actively deployed a CDP. However, it's essential to note that both in-process and planned deployments have seen a decline from 25% to 17%, indicating a future slowdown in growth.

Nevertheless, some bright spots are revealed in the data. B2B firms, medium-sized businesses, and companies located outside the Americas exhibit higher expectations for upcoming deployments.

The survey points to a significant trend where IT teams are taking over the management of marketing technology, as opposed to individual departments previously handling this task. Despite this shift, firms tend to show greater satisfaction with results when a dedicated martech team oversees the processes. It is important to note that traditional 'packaged' CDPs remain more prevalent than 'warehouse-native' (composable) approaches. However, about one-fourth of service vendors now report that most of their projects utilize a 'warehouse-native' strategy.

Some critical insights from the study include the following:

• Among companies with over $10 billion in revenue, only 10% report having entirely disconnected systems. In contrast, this figure rises to 50% for companies with revenue under $10 million. Furthermore, 81% of larger firms indicated that a CDP deployment is either complete or in progress, while only 27% of smaller companies have deployed a CDP, with none currently working on a new implementation.
• Remarkably, for the first time, 56% of businesses with unified data also report having a CDP. Previously, more firms had achieved unified data without a corresponding CDP than those with one.
• User feedback reveals that 64% of deployed CDPs provide considerable value, although this number has been on a gradual decline. It’s also noteworthy that vendor claims regarding success have moderated, with fewer asserting that nearly all implementations are successful, while more are now confirming that the majority of projects do succeed.
• Participants in the survey emphasize that unified data serves as the primary function of a CDP. They cite organizational challenges as the top barriers to success and highlight integration capabilities as the most critical requirement in their selection process. Past surveys have consistently shown that organizations that prioritize features over costs tend to report more successful outcomes.

About the Report

The insights presented stem from the CDP Industry 2024 Member Survey, which includes over 400 responses from members of the CDP Institute. This diverse group comprises both CDP users and industry vendors, with responses collected in November.

About the Customer Data Platform Institute

The Customer Data Platform Institute is an impartial organization dedicated to educating marketers and technologists about the intricacies of customer data management. They provide valuable industry news, educational materials, vendor comparisons, and directories of service firms. The Institute also offers webinars, workshops, and consultancy on relevant topics.

For more information about their initiatives and resources, please visit their website.

Frequently Asked Questions

What triggered the shift in the CDP industry?

The shift is driven by the need for companies to modernize their customer data practices and adapt to new market trends and user demands.

How has customer data unification progressed?

Recent surveys indicate that customer data unification is improving, with a significant percentage of respondents reporting that they have successfully achieved it.

What challenges do companies face regarding CDP implementations?

Organizational issues are cited as the main challenges, particularly in integrating systems and ensuring cross-departmental cooperation.

Are all implementations of CDPs successful?

While a majority have seen success, there's variability, and fewer vendors now claim near-total implementation success compared to past years.

What should organizations prioritize when selecting a CDP?

Organizations are advised to prioritize features over costs to enhance the likelihood of successful outcomes in their CDP initiatives.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.