CDP Industry Sees Growth Amid Shifts in Martech Management and Deployment

The Customer Data Platform (CDP) industry is experiencing a second wave of growth, revealing pivotal developments and shifts across sectors. A comprehensive survey conducted by the Customer Data Platform Institute indicates that the industry is expanding into new users, industries, and geographical regions. Notably, there has been substantial progress in efforts aimed at customer data unification. Current statistics show that 57% of respondents have successfully achieved a unified customer database. Furthermore, 68% have reported a deployed CDP. However, data also suggests a possible slowdown in future growth, as percentages of in-process and planned deployments have decreased from 25% to 17%.

Expansion and Growth Prospects

Key Statistics and Trends

Despite potential slowdowns, the survey data reveals that growth prospects remain bright among business-to-business (B2B) firms, mid-sized companies, and regions outside the Americas. This indicates a robust and promising future for the CDP industry in various global markets, particularly in those regions that might have previously been considered less penetrated. Additionally, a noteworthy trend has emerged in the management of marketing technology (martech). According to the survey, there is a growing tendency for IT teams to take the helm in managing martech instead of individual departments or martech-specific teams. This shift could signify a transformation within organizational structures, tailoring more streamlined and integrated management processes.

Interestingly, the survey highlighted that satisfaction levels with martech outcomes were highest when a dedicated martech team managed the technology. This satisfaction gap underscores the importance of specialized management and expert oversight. By having a martech team in charge, companies might experience more cohesive strategies and better-utilized resources, leading to more successful outcomes. Although warehouse-native or composable CDPs are gaining traction, traditional packaged CDPs still dominate the market. Nearly 25% of service vendors report using warehouse-native methods for the majority or entirety of their projects, indicating a steady, albeit gradual, shift towards these newer models.

The Role of Company Size and Financial Health

The survey also offered intriguing insights into how company size and financial health affect CDP deployment and usage. It was found that larger companies, those with revenues exceeding $10 billion, are far less likely to have entirely disconnected systems, with a mere 10% of these large firms experiencing such issues. Conversely, smaller companies with revenues under $10 million face a steeper challenge, with 50% grappling with disconnected systems. The scale of the company clearly influences its ability to integrate and manage customer data efficiently.

Additionally, 81% of the largest firms have a CDP already deployed or in the process of deployment, whereas just 27% of the smallest firms have achieved similar milestones. This disparity suggests that larger firms have more resources and perhaps more compelling incentives to invest promptly in advanced customer data solutions.

The State of CDP Utilization

Current Deployment and Value

For the first time, the survey shows that more than half of the companies with unified customer data also utilize a CDP, with numbers reaching 56%. Users have reported that 64% of the deployed CDPs are delivering significant value, although this number has been declining over time. This data hints at some degree of maturation within the industry and potential evolving expectations from CDP deployments. While early adopters might have initially reaped substantial benefits, newer deployments might be facing more nuanced challenges or expecting higher returns.

Interestingly, service vendors have become more conservative in their claims about the effectiveness of CDP implementations. While fewer vendors state that nearly all implementations are successful, the majority still report a high rate of project success. This cautious optimism might reflect growing awareness of the complexities involved in CDP deployment and a desire to set more realistic expectations among clients.

Drivers and Challenges

One of the primary objectives for companies utilizing CDPs is to achieve a unified view of customer data. Despite this, organizational challenges remain the most significant obstacles in reaching this goal. Integrating various data sources and ensuring seamless connectivity across departments can prove to be daunting tasks. Integration capabilities continue to rank as the top selection requirement when companies choose a CDP.

Moreover, it’s been observed that companies prioritizing cost over features tend to experience less success compared to those focusing on the CDP’s capabilities. This trend echoes consistent themes from past surveys, underscoring the notion that investing in the right features and integration capabilities yields better returns. Balancing between cost considerations and feature richness remains a critical decision point for organizations navigating the CDP landscape.

The Evolving CDP Landscape

Organizational Impact and Satisfaction

The Customer Data Platform (CDP) industry is undergoing a significant second wave of growth, with major developments and changes spanning different sectors. A detailed survey by the Customer Data Platform Institute shows that the industry is not only expanding its user base but also branching out into various industries and geographical regions. One of the most notable advancements is in the realm of customer data unification. Current statistics indicate that 57% of respondents have successfully achieved a unified customer database, while 68% have reported that they have deployed a CDP. Despite these advancements, there is a potential slowdown on the horizon, as the percentage of in-process and planned deployments has decreased from 25% to 17%. This dip suggests that while there has been a lot of progress, future growth may not continue at the same pace. It’s clear that the CDP industry is at a crucial juncture, with both significant achievements and looming challenges that will shape its future trajectory.

Explore more

Can AI Redefine C-Suite Leadership with Digital Avatars?

I’m thrilled to sit down with Ling-Yi Tsai, a renowned HRTech expert with decades of experience in leveraging technology to drive organizational change. Ling-Yi specializes in HR analytics and the integration of cutting-edge tools across recruitment, onboarding, and talent management. Today, we’re diving into a groundbreaking development in the AI space: the creation of an AI avatar of a CEO,

Cash App Pools Feature – Review

Imagine planning a group vacation with friends, only to face the hassle of tracking who paid for what, chasing down contributions, and dealing with multiple payment apps. This common frustration in managing shared expenses highlights a growing need for seamless, inclusive financial tools in today’s digital landscape. Cash App, a prominent player in the peer-to-peer payment space, has introduced its

Scowtt AI Customer Acquisition – Review

In an era where businesses grapple with the challenge of turning vast amounts of data into actionable revenue, the role of AI in customer acquisition has never been more critical. Imagine a platform that not only deciphers complex first-party data but also transforms it into predictable conversions with minimal human intervention. Scowtt, an AI-native customer acquisition tool, emerges as a

Hightouch Secures Funding to Revolutionize AI Marketing

Imagine a world where every marketing campaign speaks directly to an individual customer, adapting in real time to their preferences, behaviors, and needs, with outcomes so precise that engagement rates soar beyond traditional benchmarks. This is no longer a distant dream but a tangible reality being shaped by advancements in AI-driven marketing technology. Hightouch, a trailblazer in data and AI

How Does Collibra’s Acquisition Boost Data Governance?

In an era where data underpins every strategic decision, enterprises grapple with a staggering reality: nearly 90% of their data remains unstructured, locked away as untapped potential in emails, videos, and documents, often dubbed “dark data.” This vast reservoir holds critical insights that could redefine competitive edges, yet its complexity has long hindered effective governance, making Collibra’s recent acquisition of