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The global customer data platform market size stood at USD 772.1 million in 2019 and is projected to reach USD 4,364.7 million by 2027, exhibiting a CAGR of 24.5% during the forecast period.
The rising awareness towards customer satisfaction and need for enhanced shopping experience is likely to boost the adoption of the platform. Also, advertisers and marketers are focusing on providing real-time and personalized customer services is likely to drive this market.
With the global spread of COVID-2019, many organizations are facing challenges in providing its employees with proper access to its high-quality data. To keep business inflow, organizations need to invest in infrastructure which will offer access to the company’s collected data. Different industries need to adopt unique strategies for remote working based on their services and products. For the consumer-facing organization, they rely majorly on customer data for acquiring new customers as well to retain existing ones for business stability.
Considering COVID-2019 and its future impacts, organizations need to invest in infrastructure which offers centralized data access to the workforce at a remote location. This is likely to boost the demand for customer data platform owing to its centralized data availability feature. The present epidemic is likely to witness drastic changes in the customer buying behavior owing to COVID’s impact on the financial capability of customers, availability of products, among others. Also, due to work from home facility maximum people will have more time to access the services majorly retail and E-commerce through different channels. A CDP offers the members present in different locations access to the data to maintain the business process. Thus, having a single and truthful source will offer the marketers and advertisers to properly target customers based on their preference, location, and need. Real-time data provided by the CDP will ensure ROI through campaigns organized from remote locations by product managers and developers. Incorrect data in such crises can lead to the downfall of the company. Thus ensuring accurate data about the customers and their demands are very much required today, which can be offered by the CDP through its real-time and personalized solutions.
Thus, the demand for customer data platforms is likely to witness substantial growth in such an epidemic situation.
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Increasing Adoption of Artificial Intelligence and Machine Learning to Support Lucrative Business
The next generation CDP is trending these days with the rising high availability of Artificial Intelligence (AI) and Machine Learning (ML) technologies. It incorporates AI, ML, and natural language processing among others to reduce the tasks of the marketing teams. Technological advancement is providing a platform to analyze data and the service providers can offer personalized services to the customer, which is likely to enhance customer experience and maintain relationships with customers. For instance, the customer data platform analyses the behavior and patterns of the customers across all the channels. The AI and ML generate data sets, evaluate and compare the relationship of these data such as purchase history, product or service preferences among others and accordingly offers recommendation for about customer’s next need and purchase plans. With the AI and ML, the marketer gets a better and deeper understanding of the customers and their buying patterns.
With the implementation of AI at the core of CDP, analysis and proper results will provide the next best action to enhance the customer experience. For instance, CDP along with AI algorithms and historical data of customer’s shopping traits will be able to offer the next best product based on their interests. With the incorporation of AI technology in the solution, the businesses can identify and analyze the reason behind the particular purchasing pattern of the customer.
Advanced data analysis and intelligence are likely to boost the adoption of the platform. This will also offer better predictions based on the customer’s purchasing history and patterns, and thus, offer a suitable recommendation.
Real-Time and Personalized Data Analysis Offered by CDP is Likely to Drive the Market
Today, the customer is present on every channel or platform for daily activities such as checking emails, reading books, online shopping for food & apparel, online payments, social media apps among others. Therefore, there is a rise in data sets, also the customers enter or exit the app or jump the apps frequently. Thus, tracking real-time engagement is essential. Enterprises are using this database to provide valuable offers and recommendations to customers based on their usage of apps and websites.
With the help of a customer data platform, the marketer collects and analyzes the data, and accordingly executes the marketing strategy. Earlier, the data was stored in a decentralized system thus collecting data at one single frame and analyzing it was tough and time-consuming. The CDP stores the data at a single platform from where all the analysis is executed. In this fast and connected world, the marketer requires instant action to engage a customer and offer suitable services, the customer data platform is likely to have all potential to serve the organizations. It offers personalized real-time data when you feed any information about a customer. This means, it provides the analysis in real-time i.e. the instant the data is fed, it gives certain related analysis about the customer and its choices. This helps to engage more with the customer and to create a suitable customer experience strategy. Also, the customer doesn't need to come with the same preferences the next meet it visits the website. The historical data about the customer will not be suitable at that instant; here the platform will collect the updated choices and requirements of the customer to guide the business while offering the services. This created an opportunity for the business to re-engage with the client and extent its loyalty. For instance, the marketer can suggest the topics related to the customers' most recent searches, or the product offer the customer is looking for based on preferences, brand, and price.
The transparency of customer data platforms offer quick actions to the marketing team and can increase loyalty among the customer. The platform enriches the relationship with the vendors and partners owing to transparent targeted interactions. This is likely to create more demand for the platform amongst the organizations.
Increasing Importance of Customer Satisfaction and Relationship Maintenance in BFSI Sector is Likely to Create Opportunity
Today’s customers in any industry communicate with the organizations through various digital platforms such as websites, e-mails, social media, and more. In the last few years, BFSI has witnessed a surge in online interaction with the clients. The rising availability and affordability of the internet have boosted the customers to opt for various online channels to engage with banks, insurance companies, and other financial organizations. This has encouraged financial organizations to adopt a customer engagement strategy. To engage customer online the company, need to understand entire information and purchasing behavior of every individual client. For this reason, the BFSI sector is highly investing in customer engagement strategies and investing in strategies to maintain partnership and sponsorship.
With the rising pressure of online engagement, the BFSI industry is focused on providing personalized customer engagement over every channel. With the implementation of CPD, banks can identify the prospective customer before they log in to the websites through their historical data searches and quires. With this, the manager can offer suitable services and guidance even before customer inquiries for it. CDP keeps all the data centralized and any time any data can be used to analyze the customer interests. This helps the BFSI marketers to connect with every individual and offer a unique experience.
For instance, a customer visits the website of an insurance company, and opens the medical insurance page, spends some time on the same page and exits. The customer data platform tracks all the journey of the customer and analyses where the customer spent more time and the search history. Thus, when the customer visits the website, the offers related to his last history are shown i.e. medical insurance. The platform offers a foundation to the BFSI marketers and a platform to deliver customer-centric experiences.
The rising opportunity of customer experience in BFSI industry is driving this market
Issues regarding the data privacy of the customer is likely to hamper the adoption of DCP
Recently major customer data provider companies faced legal issues regarding the sharing of customer’s insights into organizations. Today the internet users are more concerned regarding their data privacy. With this rising issue, Europe’s General Data Protection Regulation (GDPR) was implemented to secure the publics’ private data. According to the law, organizations don’t have right on their customer’s data. Also, the customer has the right to know how and where the private data is being used, and for what purpose. This has restricted the sharing of data and is likely to hamper the adoption of the platform.
The Services is like to grow steadily during the forecasted period
The component segment is categorized into platforms and services. The platform is like to gain a maximum share of component segments for the period. The rising demand for customer satisfaction is boosting the need for the customer data platform. The industries are heavily investing in marketing and advertising to offer personalized solutions to customers. To install the platform, the CDP vendors are offering services to the industries. Along with deployment and installations services the vendors are providing maintenance services, this is likely to contribute in revenue generation. Also, the big players such as Oracle Inc., and Microsoft Corporation have recently entered the market by acquiring small and local vendors. These players are investing in the services of the platform for maintenance and integration with AI and ML. For instance, Dun & Bradstreet acquired Lattice Engines, a local AI-powered CDP provider based in the US. The company will be offering its platform to the B2B companies to enhance its personalized and omnichannel marketing drives. Thus the services segment is likely to gain traction for the forecasted period.
Cloud-Based Deployment is Likely to Boost the CDP Adoption in Industries
The deployment segment is categorized into the cloud and on-premises. The on-premises is likely to witness high revenue market share. The on-premises solution is run by the user i.e. advertisers and markets. Still, some companies are adopting on-premises CDP software as it offers full control of data. With the introduction of cloud technology, its adoption by CDP users is gaining traction. A cloud-based platform offers better-storing space and cost-effective scaling. The cloud-based platform offers data security along with the necessary tools to secure sensitive customer data. Data can be available in real-time on cloud-based CDP. For instance, Teredata.com partnered with Google LLC to offer its customer data platform on Google cloud. Through this partnership, the organizations will be able to access and query all data at low-cost storage. Thus, the adoption of cloud-based platforms is increasing.
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The Analytics Type is Like to Witness High Growth Owing to Rising Investment
The type segment is categorized into access, analytics, and campaign. The access type offers customer data across the organization and at customer touchpoints such as while communicating through emails, callings, and others. The access type is likely to witness a maximum market revenue share for the forecasted period.
The analytics provide granular insights into customer behavior, which helps in defining customer segmentation and tracks customer across channels. Also, this type has witnessed a rise in investment by the organizations. The analytics offer beyond campaign-centric solutions i.e. by offering strategies that matters more such as understanding the values of a business, creating a foundation of insights along with first and third party data. Thus the enterprises will be able to engage targeted customers based on their needs. Thus, the analytics type is likely to witness exponential growth for the forecasted period.
Retail & E-commerce and Healthcare industry is likely to Witness High Adoption of CDP
The industry segment is categorized into Banking, Financial Services and Insurance (BFSI), Retail and e-commerce, Information Technology (IT) and Telecom, Media and Entertainment, Travel and Hospitality, Healthcare, and Others (Government, Education, etc.)
In today’s digital world, the retail and e-commerce businesses are quite fast in adapting marketing automation tool for the growth of businesses. The customer data platform has recently gained the attention of retailers. Real-time marketing systems based on central platforms such as CDP can upgrade the marketing strategies to a new level. The rising competition within the retail and e-commerce market is boosting the adoption of CDP to reach a suitable customer. One of the ways to target a customer offline is through his online data history. For instance, when a customer visits a retail website and adds items, but then discard the cart and logs out. Again, when the same customer visits the offline store of the same brand, here with the help of real-time CDP, he receives notifications with offers regarding his past cart transactions. With his past purchasing history, the customer receives enriched offline customer experience.
With the help of CDP, retailers can boost customer experience and conversations. In this highly competitive market, CDP uplifts the retailer using it and creates unified views for the brand.
Similarly, in healthcare personalized information creates more satisfied customers. It delivers fast help to the patient at the right time. Recently, the explosion of data in the healthcare industry has opened the doors for new data monitoring opportunities. Maintaining the process of recording, analyzing, and updating the data of patient activity, medical visits, hospital records, insurance specifics, etc. is impossible without a central analytics platform. The slightest inaccessible of data can lead to improper diagnosis and treatment recommendations. It is implemented with centralized data storing capacity which helps healthcare providers to react quickly to emergencies.
One of the healthcare provider Providence St. Joseph Health implemented CDP, to provide real-time call center experience to the patients. This gave the health provider at the call to provide and assist with proper personal information available about the caller. The CDP reduced the time of gathering the data. This has resulted in higher productivity and reduced risk of a patient’s health.
North America Customer Data Platform Market Size, 2019 (USD Million)
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The global market scope is classified across five regions namely North America, Europe, Asia Pacific, Middle East, and Africa, and Latin America.
Our findings suggest North America leads the global CDP market, capturing the highest market share. The maximum players' headquarters are based in the US. The country has witnessed maximum acquisitions and developments through the CDP vendors. The industries in the US such as retail, BFSI, healthcare are implementing the platform owing to increase customer satisfaction and enrich their experience with personalization. Europe ranks second in the revenue contribution for the customer data platform market. In the year, 2017 and 2018 the European market has witnessed a rising number of vendors. UK and France contribute to more than half percent of the country based homegrown vendor. With the implementation of GDPR, the CDP vendors are offering GDPR-compliant solutions in Europe.
Asia Pacific is likely to witness a significant growth rate in the forecasted year. India and China having the highest and the second-highest number of internet users globally backed by young users in India accessing the internet at least once a week. To understand such a dynamic population, the need for customer data platform is increasing for the brands. The retail & E-commerce sector, BFSI, and healthcare are advancing fast in these countries and investing heavily to understand customer data. Japan is likely to grow steadily for the forecasted period. The growing digitalization, big data, and data analytics in Asia Pacific are boosting the marketers to invest in the CDP market. In addition, rising government policies regarding customer data privacy have boosted the adoption of the platform by the advertisers and marketers.
The market in Latin America and the Middle East and Africa is expected to grow moderately for the forecasted period. The marketers and advertisers are now started investing in the CDP, owing to its real-time analysis; still, the country is not making use of the platform to its full potential. The platforms have huge opportunities in the market of Brazil and Mexico, owing to its rising presence of the internet.
The Salesforce.com, Inc. is focusing on the acquisitions of local players to expand its reach in the CDP market
Salesforce.com, Inc. is one of the key players providing customer relationship management (CRM) and entered the market intending to expand its core solutions and technological expertise. The company is focused on providing enhanced customer experience and relationship management with its CDP. With its entry into the market, the company has acquired the local business of CDP to expand and strengthen its portfolio.
Also, the company is investing in integrating the customer 360 platforms with CDP. Salesforce Inc. is aiming to provide a CDP for every industry-specific. The company is dealing and entering partnerships with providers such as AI, cloud solutions, data analytics, and more. The company is more focused on investments by completing mergers and acquisitions with the local and regional players to expand its product portfolio of CDP offerings. For instance, in July 2018, the company acquired Datorama, providers of analytic CDP offerings, to expand its reach geographically.
June 2019 –Salesforce.com, Inc launched the customer data platform with the next generation customer 360 technology. Salesforce’s Customer 360 will offer capabilities beyond traditional CDP. It will be an extended solution to CRM software. It will help organizations to gain a single view and unified data. The organizations with the Salesforce platform could be able to provide personalized customer engagement at a huge scale.
February 2020 – Salesforce.com, Inc completed the acquisition of Massachusetts based company Evergage Inc. The Evergage Inc. is a customer data platform company, along with in-depth behavioral analytics with machine learning. With this acquisition, Salesforce has extended its portfolio along with advanced solutions.
The customer data platform earlier was owned by major and minor local players such as Segment, Radius, Ignitionone.com, Leadspace Inc., and more. From the year2017-18 the market has gained the attention of big industry players such as Oracle Inc., Adobe, Microsoft Corporation among others. The major players acquired locally established businesses to gain hold of the market. The companies entered a strategic partnership to provide accurate, real-time, and 360 customer views, with the technology provider such as AI, Big data, data analytics among others. The platform vendors are investing in the technological advancement and innovation of the platform. Also, these companies are offering dedicated services such as installation, maintenance, and managed service.
The lists of major acquisitions are as follows:
The customer data platform market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the market.
An Infographic Representation of Customer Data Platform Market
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Value (USD million)
Fortune Business Insights says that the market was valued at USD 772.1 million in 2019.
Fortune Business Insights says that the market is expected to reach USD 4,364.7 million in 2027
Growth of 24.5% CAGR will be observed in the market during the forecast period (2019-2027)
Within the industry segment, the retail & E-commerce and healthcare segment is expected to lead during the forecast period.
Real-time and personalized data analysis offered by CDP is likely to drive the market is expected to primarily drive the market growth.
Microsoft Corporation, Segment.io, Inc., SAP SE, Oracle Inc., Salesforce.com, Inc. are the top companies in the market.
The analytics type segment is expected to grow exponentially at the highest CAGR.
The revenue of the market in North America in 2019 was USD 494.0 million.
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