Customer Data Platform Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The customer data platform market is expected to register a CAGR of 32% over the forecast period 2021 to 2026. Due to the growing demand for analyses of consumer behavior across industries, the market is likely to grow at a higher rate during the forecast period. Moreover, the changing landscape of customer intelligence, the proliferation of customer channels, and increasing investments and funding in CDP startups further boost the market growth.

• The increasing demand for omnichannel experience is likely to boost the market growth as it uses a customer-centric approach that improves user experience. This approach significantly drives the growth of the market as it provides a broader customer behavior experience for businesses to implement their marketing strategies more efficiently.
• Real-time and personalized data analysis offered by the customer data platform is likely to drive the market growth. The platform provides insights about the customer and its choices when the data is fed into it and helps the organization to engage customers and create a suitable customer experience strategy.
• Furthermore, the increasing importance of customer satisfaction and relationship management across industries is likely to fuel the growth of the market. For Instance, in the United States, USD 62 billion is lost each year due to poor customer service, according to Salesforce.
• However, the cost associated with the modification of customer experience solutions with rapidly changing technologies is high, making it difficult for small and medium enterprises to update the solutions according to customer requirements continually.
• The outbreak of COVID-19 has a positive impact on the market as people around the world are focused on online activities such as e-commerce, and OTT platforms, which is expected to increase the customer data worldwide. Therefore, this platform can help organizations to gather data and make marketing strategies more efficiently.

Scope of the Report

A Customer Data Platform (CDP) is a packaged software that integrates and organizes customer data from various sources such as CRM, transactional systems, email, and social media activity, etc. and is used by other methods, software, and marketing efforts. The platform collects and structures real-time data into individual, centralized customer profiles and helps organizations to understand their customers. The solutions (Customer Retention and Engagement, Predictive Analytics, and Personalized Recommendations) offered by the platform are covered under the geographical trends.

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Key Market Trends

Retail and eCommerce Industry To Drive The Market Growth

• With the growth of sales in the retail and eCommerce industry, the retail sector is expected to reach USD 31,880.8 billion by 2023. The customer data platform in the industry is highly used to develop personalized communications and marketing programs. It also helps to enhance customer experience and loyalty, by knowing which buyers are buying which products, and personalizing marketing based on shopper data.
• Personalized experience and a single view of consumers were the top aspects prioritized by retailers in the country, according to a survey conducted by Manhattan Associates. The Customer Data Platform helps e-commerce businesses to convert visitors into loyal customers and long-lasting foster relationships by creating exceptional customer experiences through relevant and consistent communication.
• Moreover, the omnichannel methodology is utilized majorly in the retail industry, which is boosting the growth of the market in the industry. Furthermore, consumers are shifting more toward digital resources that significantly help enterprises to adopt these platforms to carry out predictive analytics to draw predictions about consumer buying preferences.

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