Customer data platform providers will generate $6 billion globally by 2027

Customer data platforms (CDPs) help to deliver personalized experiences across brand touch points. A new study by Juniper Research has found that customer data platform providers will generate $6 billion globally by 2027, rising from $1.7 billion in 2022; representing a growth of 250%. The introduction of AI-based services will be key to unifying multiple data sources on a single platform; reducing siloed data and centralising enterprise access to customer data. Customer data platforms are used to gain insight into customer preferences through collecting and extrapolating data on transactions, browsing history and other online information.

Customer expectations continue to rise as purchasing journeys become increasingly digital and industry leaders raise the bar for compelling customer experiences. E-commerce already accounts for 42% of all B2B purchases today, and it is predicted to add another 15% to its growth in terms of sales by 2023. To compete, companies must create more dynamic, personalized experiences throughout the customer lifecycle by quickly converting user data into insights. Customer data management, analytics, and audience creation solutions help organizations address business priorities by creating superior customer experiences.

In the age of the customer, businesses focus everything they do on what their customers value most, including creating a compelling and consistent customer experience. The most valuable capabilities of current toolsets — for customer data management, analytics, and audience creation strategies — are creating a single view of the customer and improving data management. The research says there are urges for the customer data platforms to increase the breadth of integrations with third‑party vendors, such as relationship management platforms, for greater access to user data.

It highlighted the ability of customer data platforms to merge different data sources using AI as critical to unlocking more granular user insights to inform highly targeted marketing campaigns, enable greater personalisation and increase return on advertising spend. In addition, the report predicts that the retail and eCommerce sector will represent 35% of global customer data platform revenue in 2022, as online competition drives enterprise requirements for in-depth customer insights. In turn, the report urges customer data platform providers to develop new services that cater to online retailers and recommends that investment be focused on creating more efficient personalisation services.

S Mohini Ratna, Editor, VARINDIA