Customer data platforms can help marketers establish a single customer view and offer a better customer experience.
FREMONT, CA: In the next few years, the worldwide demand for customer data systems is anticipated to grow significantly. The market researchers expect that by 2025, the industry will expand immensely, rising at a phenomenal compound annual growth rate (CAGR) of 34.0 percent.
The growth is accelerated by the explosion of devices and consumer touchpoints, higher demand for marketers to organize personalized real-time interactions across channels, and the necessity to manage complex privacy regulations.
Gartner projected that by 2020, the average U.S. adult could use more than six smart devices, and Cisco predicts that by 2023, the number of devices worldwide linked to IP networks would increase to more than three times the global population. Consumers and potential customers use all these products to communicate with the organizations they do business with several times a day, and they want these brands to remember them no matter what product they use at any given moment.
The challenge will not go away any time soon. Sectioning the consumer data of Salesforce by generations shows that younger generations change devices more than earlier generations, and they are also more likely to add connected IoT devices to their repertoire.
A CDP is a non-IT system designed to streamline customer data flow across the Martech stack and establish a single customer view. The increase of potential consumer touchpoints and high expectations generate cross-device IDs and identity resolution, the ability to integrate and normalize fragmented data sets gathered across multiple touchpoints into a personal profile that reflects the customer or prospect. It is essential for assisting marketers, sales, and service professionals in producing the ideal total customer experience. CDPs provide this integration and standardization, and it even allows the data profiles to be freely accessible to other systems.
In addition, by offering strong data governance guidelines that third-party organizations approve to ensure compliance with all these categories of regulations and other data safety requirements, CDP vendors aim to help marketers overcome the privacy issue. Such audits validate best practices in internal processes, data analysis, safety, and data protection.