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Customer Data Platform (CDP) Trends in 2020

Customer Data Platform, Customer Experience, CXM, CDP

As we gaze at customer engagement in 2020, it comprises all channels where organizations try to contextualize and convene experiences for customers in a coherent way. Organizations mostly aim to deliver the right content and message to the right person at the right time while measuring effectiveness.
Customer data and interactions are spread across several systems and CDPs utilize this data to deliver one to one experience across channels. They aggregate data from different sources, combine it to a unified profile for each user, provide audience segmentation and insights, and integrate with other systems.

Following are the CDP trends we should look towards in 2020

Trend 1: Enterprise foundation service based architecture model

Organizations will heavily focus on foundation services such as journey orchestration, omnichannel content platform, operations hubs, customer data and customer segments. All of these propel foundational data, content and decisions management services like CRM, email and marketing automation, and web content management. Investments are expected to escalate for enterprise foundation services and data.

Trend 2:  Rapid growth of CDP use cases

Widening of CDP use cases is witnessed across a number of CDP vendors. Various use cases such as customer data management, personalization and experience optimization, behavioral and predictive analysis, outbound marketing campaign, e-commerce optimization, B2B marketplace support, omnichannel aggregation and digital advertising aid in vendor evaluation. Business scenarios and use cases are the elementary approaches to distinguish and gauge different vendors. Not all the vendors’ CDP product will encompass these use cases but the end-user should prioritize their business requirements.

Trend 3:  Fragmentation of CDP vendors in the marketplace

In 2020, the marketplace will become marginally disintegrated as the current CDP market constitutes a large number of vendors. They can be categorized as a suite vendor like large Martech and CX vendors or pure-play vendors. During the last few years, billions of dollars have been invested in CDP platform and there is an enormous amount of activity and uptake in pure-play platforms. The modern marketplaces tend to segregate between traditional suite vendors and pure-play vendors.

In general, all the CDP vendors are flourishing and are affluent, making it tough to fix a long-term survivor. It is imperative for all enterprises to reevaluate their business readiness in 2020, and address the evitable data management and data integration challenges that come up with any CDP implementation.