Looking for key trends for 2024? How about key Customer Data Platforms (CDP) trends? Our fifth annual report, the 2024 State of the CDP, has all the insights you need to plan and scale effectively. If your organization uses Artificial Intelligence (AI) or Machine Learning (ML), is interested in first-party data and CDP adoption, or wants to learn how other companies are delivering personalized customer experiences and driving revenue, this blog is for you! Let’s explore the market forces that are shaping 2024 and the best methods to prepare for them.
How does a CDP work across departments to meet business goals?
Companies with a CDP are more likely to meet business goals in comparison to those without a CDP. According to our 2024 State of The CDP report, companies with a CDP showed high levels of satisfaction in meeting their business goals over the past 12 months (89%), significantly higher than those without a CDP (60%).
Moreover, CDPs typically function as a versatile tool that involves various teams, spanning departments such as marketing, analytics, and IT. These teams must collaborate effectively to optimize the benefits obtained from CDP data. Acting as a central hub for customer information, the platform encourages collaboration between different functions, enabling organizations to provide more personalized and efficient customer experiences.
The average team size for CDPs is growing, with over half of organizations (51%) now having ten or more team members, up from 46% last year. Additionally, as CDP usage matures, team sizes more than double after the four-year mark.
How does a CDP help with data sources, utilization, and investment?
An effective enterprise company often uses multiple data sources, which can make data wrangling, utilization, and activation next to impossible without the right strategy. However, with a tool like a CDP, companies can streamline the data collection, utilization, and activation process. Our 2024 State of the CDP report found that 27% of companies surveyed are leveraging more than 10 data sources, and that percentage increases to 34% for the most experienced CDP users.
With streamlined tools, enterprise companies can use a CDP to prioritize better investment in future-proofing their data. We found that 65% of companies increased investments in their first-party data strategies. Additionally, organizations using a CDP for four or more years exhibit a lower likelihood (10%) of reducing spending in this domain, compared to those just beginning with a CDP (29%).
Furthermore, real-time data has become essential for organizations, serving a pivotal role in achieving dynamic personalization, maintaining cross-channel consistency, optimizing campaigns, and ensuring compliance. Survey results underscore this importance, with 80% of CDP adopters emphasizing the critical role of real-time data in meeting their business objectives, which increases to 88% among the most experienced CDP users. Furthermore, 84% of these organizations highlighted the capability of CDPs to leverage real-time data for analysis, decision-making, and execution.
Are companies with a CDP more successful?
When it comes to measuring success, companies need to establish clear objectives before implementing a CDP and regularly assess these metrics to gauge the platform’s success. When it comes to setting success metrics, respondents ranked Data Quality first (34%) followed by Customer Experience (25%), which mirrored the same trend as last year.
Upon implementation, CDPs demonstrate rapid time-to-value and ROI realization. Notably, 48% of CDP adopters reported observing ROI within six months, while a significant majority (79%) achieved ROI within the first 12 months, and an even higher proportion (91%) reached this milestone within 18 months, indicating an accelerated pace compared to 2022 benchmark data.
Lastly, we found that companies with a CDP are thrilled with their deployment and implementation! Our 2024 State of the CDP report uncovered that 90% of companies with CDPs are very satisfied with their investment.
How to effectively adapt to changing market forces
With a CDP, you can keep up with market trends like AI and ML, third-party cookie deprecation, and data privacy.
Global privacy regulations are transforming how businesses manage data, posing challenges but also providing opportunities for organizations to distinguish themselves through responsible data practices and a commitment to safeguarding customer privacy. Organizations are increasingly relying on CDPs for current regulatory compliance and future-readiness, with 91% of users expressing confidence in their CDPs for current privacy regulations (up from 87% in 2022) and 91% feeling more prepared for new regulations compared to only 57% of non-CDP users (down from 67% in 2022).
Third-party are cookies crumbling, forcing businesses to seek first-party data strategies. Businesses are leveraging CDPs to help prepare for the loss of third-party cookies. 85% of CDP users stated they are “somewhat prepared” or “very prepared,” compared to 62% of companies without a CDP.
Companies strategically approach AI adoption by using reliable data from their CDP. Organizations with CDPs are more inclined (87%) to adopt AI technologies compared to those without CDPs (70%), with a focus on AI-driven chatbots, virtual assistants, and predictive analytics.
Using real-time data is a key to winning customers in the moment. 87% of CDP users also stated, “Our CDP helps us future-proof our business to be more resilient and adaptable in the face of future challenges.” The ability to harness real-time insights and deliver personalized customer experiences allows companies to navigate changing landscapes and anticipate future trends.
To get all the details, explore our 2024 State of the CDP report.
