#United States #Milford #Customer Data Platform #CDP Institute #Unified Data

New Horizons for Customer Data Platforms

Recent findings from the Customer Data Platform Institute indicate that the CDP landscape is undergoing significant transformations. As the demand for sophisticated customer data management increases, organizations are pivoting towards fresh user demographics, industries, and geographical markets in pursuit of the next growth wave. This shift is particularly evident among B2B businesses and mid-sized firms, which are increasingly adopting CDP technologies.

In a detailed member survey conducted by the Institute, it was noted that customer data unification is achieving notable success, with 57% of those surveyed reporting that they now maintain a unified customer database. Meanwhile, 68% have successfully deployed a Customer Data Platform, a substantial increase from previous years. However, despite these achievements, a decline in the number of planned deployments—falling from 25% to 17%—indicates potential slowdowns in future growth.

Shifting Control Towards IT Teams

The administration of marketing technologies is transitioning from individual departments to specialized IT teams. This represents a significant shift in how organizations approach customer data management. Nevertheless, satisfaction levels regarding martech outcomes are markedly higher when marketed by dedicated martech teams rather than diverse departments, highlighting the need for specialized skill sets in this evolving landscape.

Traditional versus Composable CDPs

The survey results reveal a distinction between conventional 'packaged' CDPs and the emerging 'warehouse-native' approaches. Currently, traditional packaged solutions dominate the market, although a growing number of service providers—approximately 25%—report that a majority of their projects are adopting a warehouse-native architecture.

Additional statistics from the survey shed light on more nuanced trends:

• - A mere 10% of companies with revenues exceeding $10 billion report entirely disconnected systems compared to 50% of smaller firms with revenues below $10 million.
• - While 81% of larger organizations report that their CDP is fully implemented or underway, only 27% of smaller ones have a CDP solution in place.
• - A notable 56% of companies with unified data now also utilize a CDP, an increase from previous surveys that indicated more firms had achieved data unification without implementing a CDP.

Value Realized from CDP Deployments

The perceived value of deployed CDPs has waned slightly, with 64% of users reporting significant returns from their implementations—down from earlier surveys. Vendor claims surrounding deployment success have also moderated, with a lesser number asserting that near-total implementation success is typical.

Organizations view unified data as the core purpose of a CDP and identify internal organizational challenges as the key obstacles to effective implementation. Consequently, companies that prioritize feature selection over cost in their CDP choices tend to enjoy better overall success, a trend consistent with earlier surveys.

Conclusion

The findings of the CDP Institute's 2024 Member Survey provide a comprehensive overview of the current state of the Customer Data Platform industry, emphasizing not just growth opportunities but also the challenges ahead. As the market continues to mature, businesses must adapt their strategies to leverage unified customer data effectively, ensuring they are well-positioned to meet future demands and maximize the value of their customer engagement efforts.