Commentary

The CDP Dare: Are You Using Too Many Platforms - And Are They Working?

Email teams at big brands may be getting undone by their customer data platforms (CDPs), judging by “What’s next for the customer data platform?”, a study by MessageGears.

Of the companies polled, 90% use more than one CDP. The study finds that 44% use three CDPs, and 23% utilize two or four. 

And to what end? Just 10% feel their CDP meets all their needs, while only 1% feel it will meet all their future requirements. 

Moreover, 27% believe their CDP cannot keep up with growing data volume, while 27% face security and compliance issues. And 26% are dealing with performance and reliability challenges. 

(CDPs are defined as software applications that unify a company’s customer data from marketing and other channels. The term was invented by David Raab in 2013). 

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The study points toward use of composable CDPs as opposed to packaged CDPs. A packaged CDP is a stand-alone platform that stores a copy of customer data on their own servers.

Of the companies polled, 56% prefer a composable CDP when purchasing a new solution. And of those using one, 86% are satisfied. 

Meanwhile, here is how  brands use their CDPs:

  • Real-time customer engagement and personalization — 40% 
  • Cross-departmental collaboration and data sharing — 39% 
  • Managing and optimizing the customer journey — 38% 
  • Ensuring data privacy and compliance - 37%
But many use cases just are not available:
  • Improve data-driven decision making — 24% 
  • Improve sales strategies and performance — 23% 
  • Enhance data-driven product development — 23% 
  • Automate and streamline marketing processes — 22% 
  • Track and measure customer behavior and trends — 22% 

Here is a wish list for CDP features, including many that could come right out of. the email department:

  • Offers AI and predictive intelligence — 67%
  • Securely stores and uses customers’ personal data — 66%
  • Data security and compliance features — 65%
  • In-depth analytics and reporting — 65%
  • Provides real-time access to customer data — 64%
  • Data governance — 63% 
  • Efficient and knowledgeable customer support — 62% 
  • Data ingestion — 61% 
  • Identities highly specific customer audiences — 61%
  • Real-time triggers — 59% 
MessageGears partnered with Hanover Research to survey 300 technology, marketing and martech professionals in the U.S. and U.K. in May 2024.
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