2021 has been a key year for Customer Data Platforms. According to data provided by the CDP Institute, the revenue of this type of platform has increased by 25% compared to 2020, reaching 1.6 billion dollars, a not insignificant figure.
The prohibition of third-party cookies and the obligation to use own data or customers who demand increasingly personalized experiences are some of the reasons that have driven this growth, which is expected to continue in 2022.
But what else can we expect? Here are 4 trends that will shape CDPs in 2022:
1. Increased adoption of CDPs by companies
According to the same CDP Institute report, 20 new suppliers landed in this market in 2021 and existing ones increased their funding by 10% and their headcount by 6%. This increase in supply is directly related to the interest of companies in acquiring this type of platform. But what has motivated this change?
The arrival of COVID-19 has been a digital accelerator for many companies that have been forced to transform their work processes and the way they relate to their customers, prioritizing the digital experience.
More demanding customers
Communication and generalized customer treatment is a thing of the past. Customer experience has positioned itself as a key factor for customers to stay with a brand or abandon it to the point where 86% of consumers would be willing to pay more if it meant a better and more personalized customer experience.
More data to process
Personalization and digital transformation also means receiving much larger amounts of data from our customers. Therefore, it becomes necessary to have a system that stores, organizes and processes data properly.
2. The Customer Data Platform (CDP) concept takes hold and is divided into subcategories.
While it is true that there are markets such as the U.S. where this type of platform is already well established, there are others where CDPs are just beginning to gain momentum.
At the moment, according to the CDP Institute’s Member Survey 2021, more than 60% of clients understand that the main functionalities of this type of platform are unified views of clients and the loading of data from different sources.
The year 2022 is expected to serve as a turning point and leave behind doubts about what these platforms are, what they do and how they can help a company. In the same way, it is estimated that a greater expansion of the knowledge of these platforms and their benefits will help the implementation in companies to understand how they can fit them into their MarTech strategies.
It is also expected that vendors will begin to differentiate into subcategories (pure data, analytics and campaigns) to help customers quickly identify capabilities and benefits.
3. Increased concern for data privacy
One of the biggest issues found in the study is the lack of commitment by DPC providers to data privacy compliance. In 2021, only 11% admitted to paying some attention to privacy regulations and taking some steps to comply with them. This figure, which declined from 2020, where it was at 12%, is expected to increase in this coming year and privacy will become one of the priorities.
We know how important it is to protect your customers’ data. That’s why at FLYDE we comply with legal and data protection obligations. You can find out how here.
4. CDP platforms for all audiences
The complexity of analyzing large amounts of data from different sources and processing them has made most of the CDP platforms on the market very technical. While it is true that there are companies with large IT teams, we can also find others in which the burden of these actions falls on teams with little technical knowledge that make it very difficult to use these tools properly.
Some suppliers are opting to facilitate some of the tools that make up their platforms, although there is still a long way to go as these changes require time and investment. However, it is still important: CDP platforms are becoming more and more transversal to all company departments. Sharing unified profiles, sharing data, cross-referencing and processing them in real time or generating strategies from them are just some of the common processes that we can find in any company on a daily basis.
For this reason, marketing and sales professionals, among other departments, are looking for greater autonomy when generating campaigns, cross-referencing data, etc., and thus avoiding funnels and waiting times.
FLYDE, the only truly user-oriented CDP
FLYDE is the only CDP created with the user in mind, whether you have technical knowledge or not. Easy to understand, easy to use. Collect your customer data from different sources, analyze it and process it to turn it into successful strategies.