The customer data platform market is expected to register a CAGR of 32% over the forecast period 2021 to 2026. Due to the growing demand for analyses of consumer behavior across industries, the market is likely to grow at a higher rate during the forecast period. Moreover, the changing landscape of customer intelligence, the proliferation of customer channels, and increasing investments and funding in CDP startups further boost the market growth.
- The increasing demand for omnichannel experience is likely to boost the market growth as it uses a customer-centric approach that improves user experience. This approach significantly drives the growth of the market as it provides a broader customer behavior experience for businesses to implement their marketing strategies more efficiently.
- Real-time and personalized data analysis offered by the customer data platform is likely to drive the market growth. The platform provides insights about the customer and its choices when the data is fed into it and helps the organization to engage customers and create a suitable customer experience strategy.
- Furthermore, the increasing importance of customer satisfaction and relationship management across industries is likely to fuel the growth of the market. For Instance, in the United States, USD 62 billion is lost each year due to poor customer service, according to Salesforce.
- However, the cost associated with the modification of customer experience solutions with rapidly changing technologies is high, making it difficult for small and medium enterprises to update the solutions according to customer requirements continually.
- The outbreak of COVID-19 has a positive impact on the market as people around the world are focused on online activities such as e-commerce, and OTT platforms, which is expected to increase the customer data worldwide. Therefore, this platform can help organizations to gather data and make marketing strategies more efficiently.
Key Market Trends
Retail and eCommerce Industry To Drive The Market Growth
- With the growth of sales in the retail and eCommerce industry, the retail sector is expected to reach USD 31,880.8 billion by 2023. The customer data platform in the industry is highly used to develop personalized communications and marketing programs. It also helps to enhance customer experience and loyalty, by knowing which buyers are buying which products, and personalizing marketing based on shopper data.
- Personalized experience and a single view of consumers were the top aspects prioritized by retailers in the country, according to a survey conducted by Manhattan Associates. The Customer Data Platform helps e-commerce businesses to convert visitors into loyal customers and long-lasting foster relationships by creating exceptional customer experiences through relevant and consistent communication.
- Moreover, the omnichannel methodology is utilized majorly in the retail industry, which is boosting the growth of the market in the industry. Furthermore, consumers are shifting more toward digital resources that significantly help enterprises to adopt these platforms to carry out predictive analytics to draw predictions about consumer buying preferences.
North America to Account for Highest Market Share
- North America contributes to the highest market share in the global market due to the presence of major players like Salesforce, Oracle, etc.and providers of customer data platform as a sub product. Moreover, the marketers and brands in the region have been the early adopters of CDPs.
- The industries in the United States, such as BFSI, Retail, and eCommerce, are adopting this platform at a higher pace due to the increased focus towards increased customer satisfaction and provide better-personalized experiences. For instance, U.S. Bank partnered with Salesforce to personalize its offering and to improvise the customer relationship with the bank.
- Organizations, especially in the United States, are using the CDP platform to generate insightful information from structured and unstructured data. Moreover, solutions such as Customer Retention and Engagement, Personalized Recommendations, etc. offered by CDP are helping companies to remain competitive in the market.
- Furthermore, the companies growing investment in digitalization, cloud deployment, big data, and data analytics in the region is boosting the marketers to invest in the customer data platform market.
The customer data platform market is fragmented due to the presence of several players in the market. Players in the market are entering into strategic alliances and partnerships to improve and update their existing platform and to gain competitive advantage. Some of the key developments in the market are:
- In February 2020 - Salesforce.com Inc. completed the acquisition of Massachusetts based company Evergage Inc. which is a customer data platform company along with in-depth behavioral analytics with machine learning. The acquisition will help Salesforce to extend its portfolio along with advanced solutions.
- In October 2019 - Oracle Inc. acquired CrowdTwist, a cloud-based customer loyalty solution provider based in New York. The acquisition will help the company to offer personalized engagement along with loyalty and reward programs.
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