4 trends that will shape the CDP market in 2023
By Santiago Bazarra · Jan 15, 2023 · 3 min read
2021 and 2022 were pivotal years for Customer Data Platforms. The ban on third-party cookies, the growing need to rely on first-party data, and customers demanding ever more personalized experiences are some of the reasons behind the market's accelerated growth. And everything points to that growth continuing in 2023.
In this article we review the four forces reshaping the CDP market that will set the direction of the sector over the coming year.
1. The decline of third-party cookies as an accelerator
The progressive deprecation of third-party cookies is probably the factor that has most driven the rise of CDPs in recent years. Without cookies, digital advertising loses a significant part of its tracking and attribution capability. Brands need an alternative that doesn't depend on third parties, and that alternative is first-party data: the data a company collects on its own channels, with the user's consent.
A CDP is precisely the infrastructure that makes it possible to take advantage of that first-party data: collecting it, unifying it, enriching it, and activating it in real time. Companies without a CDP in 2023 will find it much harder to keep their campaigns effective.
2. The demand for real personalization
Customers in 2023 no longer accept mass communication. They expect brands to know them, understand their preferences, and offer personalized experiences at every touchpoint. A generic email gets ignored; a relevant recommendation generates engagement.
This demand for real personalization is impossible to satisfy without a 360 view of the customer, unifying data from every channel. Smart CDPs, which combine data unification with AI/ML, make it possible to move from traditional segmentation to hyper-segmentation and one-to-one personalization.
3. Unification as the answer to a fragmented stack
A modern company's tech stack includes an ERP, a CRM, an ecommerce platform, an email marketing tool, customer service systems, advertising platforms, and many more. Each of these tools generates data, but the data lives in silos and doesn't communicate.
This fragmentation is one of the biggest obstacles to operating in a customer-centric way. CDPs solve this problem by becoming the unifying layer of the stack: they connect to all the sources, clean and structure the data, and make it available to the rest of the tools in a coherent, activatable format.
4. Unprecedented market growth
The data speaks for itself. The global CDP market is growing at compound annual rates close to 30%, and everything indicates that pace will hold over the coming years. More and more companies in retail, banking, telco, healthcare, and other sectors are adopting customer data platforms as part of their digital transformation.
This growth isn't only quantitative; it's also qualitative. CDPs are evolving to incorporate native AI/ML capabilities, simpler integrations, and greater accessibility for non-technical profiles. The CDPs of 2023 look nothing like those of three years ago.
Why FLYDE?
FLYDE is a smart CDP designed to stay ahead of these four trends. It unifies data from all your sources, applies AI/ML-based predictive models, lets you hyper-segment without depending on IT, and is built so that any business user can use it.
Contact us to schedule a demo and discover how FLYDE can help you take advantage of these four trends in your company.