Your Ultimate Guide to Understanding the Customer Data Platform
There is a lot of buzz about CDP- Customer Data Platform. It is a type of database software that streamlines customer data across martech stack and create a unified, persistent record of customers accessible from other systems. As per the Research and Markets report, the global Customer Data Platform (CDP) market size is expected to grow from USD 2.4billion in 2020 to USD 10.3billion by 2025 with a startling CAGR of 34.0% during the forecast period.
The major growth factors of CDP markets are being driven by the proliferation of devices and customer touchpoints, customers’ real-time personalization expectations, and navigation of privacy policies and regulations. Let’s comprehend each factor in detail:
Multiple Devices, Fragmented Touchpoints, and New Soaring Expectations
Gartner estimates an average U.S adult will have more than six devices by 2020 including smart TVs and wearables. Consumer expectations will also rise for recognition and relevance.
The Cisco Annual Report forecasts the number of devices connected to IP networks will be more than three times the global population by 2023. Globally, devices and connections are growing faster at 10 percent CAGR. The average number of devices and connections per capita will grow from 2.4 in 2018 to 3.6 by 2023.
Several of these devices are being used by customers in a day to interact with the companies they are doing business with and expect these brands to recognize them irrespective of the device used by them at the given time.
Salesforce State of the Connected Customer survey conducted in 2019 reveals customer journeys are nonlinear and fragmented across touchpoints.
78% of customers prefer different channels for communication with brands depending on context and 64% of customers expect tailored engagements based on past interactions.
71% of customers expect companies to communicate with them in real-time.
The data security and governance of the consumers is of the utmost importance for the marketer and is a front runner in their concerns. The data regulations body continues to grow to name a few – GDPR (General Data Protection Regulation), CCPA (California Consumer Privacy Act), and CASL (Canada Anti-Spam Legislation).
High expectations along with the escalation of customer touchpoints make cross-device ID’s – the ability to integrate different sets of data collected at various touchpoints into a single profile of a customer that will help the marketers, sales personnel, and service professionals.
As reported in Martech Today, CDP vendors are SOC (Service Organization Control), SSAE (Statement on Standards for Attestation Engagements), and/or ISO (International Standards Organization) certified. They help marketers to address privacy challenges with robust data governance protocols to ensure compliance with rules and data security standards.