Treasure Data’s Survey Results Demonstrate CDP’s Maturation from Powerful Tool to Critical Solution
Published: January 17, 2023
Treasure Data, an enterprise customer data platform (CDP) provider, has recently released the findings of a survey of MarTech decision-makers. It emphasizes the current state of CDPs, including common trends, best practises, and potential future applications.
A customer data platform (CDP) is a set of software that creates a persistent, unified customer database that other systems can access.
The findings of the survey herald a new era for CDPs, as the once-emerging technology establishes itself as the undisputed kingpin of the MarTech stack. The importance of CDPs is best demonstrated by the time it takes for brands to see a full return on investment, which is only eight months on average. Furthermore, enterprises are generally optimistic about CDPs' future prospects, with 99% of survey respondents expecting their CDP solutions to play a larger role in the next one to two years.
The rise of CDPs coincides with the increased importance of consumer data in marketing strategies and customer-centric initiatives. CDPs have delivered on their initial promise of unifying data and orchestrating the customer journey, all while exhibiting exceptional data privacy and governance. Treasure Data's technology is now taking the next step by enabling enterprise-wide business transformation through innovative use cases.
Zack Wenthe, CDP evangelist
According to the survey, CDPs already flourish at traditional digital marketing functions. Current use cases cited by half or more of marketing technology decision-makers include:
- Campaign personalization (59%)
- Audience segmentation and targeting (56%)
- Measuring marketing performance (51%)
- Identity resolution (50%)
Almost half of respondents (43%) say they will use their CDPs to improve operational efficiency in the future, and more than a third (34%) say they will use them to gain input for supply chain management.
What does the survey signal to marketers?
The customer data platform is pivotal when it comes to higher-quality customer communications.
There is a direct relationship between how satisfied customers are and how much money a company makes. Customer satisfaction (CSAT) scores influence repeat purchases and customer loyalty. It will also elevate word-of-mouth referrals and help make better business decisions.
But to satisfy the customers, marketers must understand how and why they use their service, as well as their changing expectations. This, indeed, can only be accomplished by converting the raw data gathered from users into actionable information. And here is where CDP takes centre stage.
CDP, in particular, has become inextricably linked to brands' ability to provide personalised customer experiences without falling into the complex traps of privacy policies.
Data privacy compliance is becoming an intrinsic part of almost every marketing process. It led the marketing teams to face tremendous pressure to establish systems that demonstrate the responsible storage and application of consumer information. With CDP in place, companies are able to leverage first-party customer data to its fullest extent and hence track their customer journeys. It assists them in planning and optimizing campaign strategies and measuring marketing performance.
The survey from Treasure Data reiterates the rising need for CDP for enterprise brands in this consumer-centric world and how marketers are using it to yield better marketing outcomes. Moreover, the survey clearly depicts the transition of CDP from "an optional tool to the most critical solution" for businesses.
We believe brands cannot expect CDP to be a silver bullet for their marketing success. Rather, brands must have a pre-defined marketing strategy and lean on cohesive technology solutions to attain long-term success.
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