In today’s digital world, businesses are increasingly relying on consumer data to meet evolving customer demands. Consumer data platforms (CDPs) have emerged as specialized software solutions that enable businesses to collect and manage customer data from various sources. The surge in demand for CDPs is poised to continue, with research from Extrapolate projecting a global market value of nearly £6 billion by the end of the decade, growing at a compound annual growth rate (CAGR) of 17.9%. This article delves into the key findings regarding CDP spending, explores the connection between CDPs and Communication Platforms-as-a-Service (CPaaS), and discusses the potential benefits of their integration.
Retail and digital media enterprises are set to be the primary drivers of CDP spending. According to Juniper Research, these industries will account for over £1.1 billion of global CDP spending in 2023, surpassing 70% of the current global market value. The significance of this trend highlights the growing recognition of the importance of customer data in enhancing the customer experience and driving business growth.
CPaaS, a cloud service model that facilitates the integration of communication functionalities into applications and services, is also on the rise. The research from Markets and Markets predicts that the global market value of CPaaS will reach approximately £9.7 billion, with a projected market value of £35.3 billion within the next five years, attaining a CAGR of 29.4%. CDPs and CPaaS are expected to experience simultaneous growth, with Juniper Research predicting their increasing popularity.
The combination of CDPs and CPaaS has the potential to provide businesses with more personalized services. The centralized nature of CDPs allows for the consolidation of customer data, enabling businesses to gain insights and tailor their offerings to meet individual preferences and needs. Communication platforms integrated with CDPs can facilitate effective outbound communications and marketing campaigns by leveraging user traffic data obtained through CPaaS platforms. This integration streamlines processes and maximizes the benefits of CDPs, leading to improved customer engagement and conversions.
However, enterprises must have full access to user traffic data provided by CPaaS platforms to unlock the full potential of CDPs. By integrating CPaaS functionalities into their applications and services, businesses can ensure a seamless flow of data between communication platforms and CDPs, enabling them to offer personalized experiences at scale.
The parallel growth of CDPs and CPaaS presents an exciting opportunity for businesses to leverage the combined potential of these technologies. By integrating communication platforms with CDPs, enterprises can streamline their data management processes, gain valuable insights, and deliver personalized services. The ability to centralize outbound communications and marketing campaigns further enhances the customer experience, fostering stronger customer relationships and driving business success in a data-driven world.