Increasing amounts of customer data flow into your company from an ever-growing number of (digital) channels, but you’re still unable to collect, analyze, and use all this data to improve, both the experience of your customers and the efficiency and effectiveness of your marketing expenditure. CDPs solved one of the biggest limitations to truly omnichannel and personalized experiences: siloed data, that productively prevented marketers from using it. This has made the Customer Data Platform market is expected to grow from nearly 2 billion EUR in 2020 to 8,5 EUR billion in 2025.
Why care about Customer Data in your organization
Customers expect organizations to provide them with a satisfactory customer experience, and they are willing to pay more for such experience, 80% of consumers say that customer experience is just as important as the products or services a company offers.
In order to provide a satisfactory customer experience, you need to get to know your customers first: their needs, challenges and preferences. This is only possible through customer data collection, analysis and activation.
Being able to handle and act upon this data has shown to be key to the growth of top organizations, as compared to similar competitors in their markets.
Research tells us that organizations that leverage customer behavioural insights outperform peers by 85% in sales growth and more than 25% in gross margin. (McKinsey)
However, leaders and organizations struggle to collect, organize or use this customer data for several reasons:
- Data is scattered and siloed across the many different disconnected solutions used by the teams.
- The data is being collected but cannot be processed properly so no insights are drawn from it.
- Data is collected and analyzed but the organization is not set up or ready to act upon them.
- Data is kept by certain teams within the organization so not everyone can access it and learn from it.
- The customer data collected cannot be activated through all channels because is not kept in a central repository.
- Customer data is kept in IT-managed solutions in a status that is not ready to use by the (non-technical) marketing team.
Discover in this page why CDPs have become for many marketers an essential tool in their ongoing efforts to get to better know and serve their customers, improve the results of marketing initiatives and have an impact on the growth of the bottom-line of the organization.