Customer Data Platform Market to Reach Sales of $7.09 billion by 2028 | AI Startups are Budding on the Void Industry’s Giants Have Left
Global customer data platform market was valued at $1.16 billion in 2021, and it is expected to reach a value of $7.09 billion by 2028, at a CAGR of 25.4% over the forecast period (2022–2028).
As the world becomes more and more connected, businesses across the global customer data platform market are now able to gain a better understanding of their customers and how they interact with their products. By gathering customer data, businesses can improve their customer service, provide better products and Geo-target their advertising. A recent study by SkyQuest found that, globally, 46% of organizations are using or plan to use customer data platform (CDP) solutions within the next two years. This number is increasing each year as businesses see the benefits of improving customer experience and driving revenue growth. The three main drivers for CDP are improving customer retention (43%), boosting revenue (42%) and reducing costs (28%).
The study on customer data platform market also found that Salesforce and Oracle’s Fusion Middleware are gaining huge attention of the end-users and holding a significant share of the global customer data platforms market. These platforms offer a wide range of features, including the ability to capture customer contact information, billing information, product data, engagement data, among others.
Data management is one of the critical areas of business that requires efficient and accurate systems to store, retrieve and analyze data. Overall, customer data management platforms (CDMPs) provide a central repository for customer information including name, contact details, product preferences and purchase histories.
Our analysis suggests that the demand for customer data platform market has increased in recent times as companies have come to realize the importance of leveraging this type of information in order to better understand their customers and cater to their needs. This has given impetus to the development of different CDMPs from different vendors. Some popular solutions include Salesforce’s CRM and Oracle’s Customer Relationship Management (CRM) offering.
Another key area in the customer data platform market where customer data can be used is for fraud detection. Often times, bad actors use customer information to commit fraud or mislead customers into making fraudulent purchases. By leveraging customer data platform solutions, businesses can identify potential fraudsters more quickly and stop them from harming their brand or customers in any way.
SkyQuest has published a report on global customer data platform market. The report provides insights about market revenue, market forecast, key players, market share analysis, pricing analysis, trends, opportunities, competitive landscape, market dynamics, and consumer behavior, among others.
Rapid Growth in Digital Businesses is Giving Boost to the Customer Data Platform Market
With more and more businesses turning to digital methods to do business, the online landscape has never been richer. Whether it’s through online advertising or ecommerce platforms, digital businesses are growing at an astounding rate. In fact, the global customer data platform market has witnessed 10 years growth of in just 3 months in 2019. As of the 2021, the number has increased almost 400% as compared to 2018, says analyst at SkyQuest.
Another reason for the growth of digital businesses is the increasing demand for online services. Nearly every sector of the economy is seeing a rise in demand for digital products and services, which is fueling rapid growth in digital businesses. Transportation, banking, insurance…the list goes on and on. In today’s fast pace environment, every business is running behind expanding their operation and revenue by making online presence or listing them on e-commerce sites. This, turn, has added fuel to the growth of customer data platform market.
Customer data platforms make it easy for businesses to get a comprehensive picture of their customers, which can help them improve customer engagement, understand customer needs and preferences, and create better products. In addition, data platforms make it possible to monetize customer data in a variety of ways, including through targeted advertising and market analysis. As a result, data platforms are increasingly being used by digital businesses of all sizes.
Top 3 Trends in Global Customer Data Platform Market
As data becomes more readily available and accessible, businesses are scrambling to find ways to use it to their advantage. In fact, customer data platform is now seen as a key part of any organization’s strategy for managing customer relationships. Here are some recent trends in CDP adoption:
- Increasing focus on predictive analytics. In order to identify and address customer problems before they become too big or costly, businesses are turning to predictive analytics platforms to make predictions about customers’ behavior. These platforms can help identify patterns in customer data that can be used to predict future behaviors or suggest new sales campaigns.
- Increased focus on CRM integration. Many companies in the global customer data platform market are realizing that they need a comprehensive customer data platform in order to manage all aspects of their relationship with their customers. This includes everything from customer profile creation and management to Dealer Management and Retail Engagement modules. In order to make this process as smooth and seamless as possible, many CDPs now come with integrated CRM software capabilities.
- Integration of AI in CDP: AI is quickly becoming a key component in customer data platforms (CDPs), helping organizations to make better decisions about their customers and increase sales. While there are many different AI-powered approaches to CDPs, a few common AI strategies include using natural language processing (NLP) to understand customer interactions and sentiment, and using machine learning algorithms to optimize customer interactions.
Start-Ups are Budding on the Void Left by Giants in Customer Data Platform Market
The customer data platform market is quickly evolving with startups popping up to fill a void of available solutions. The problem with most prominent CDPs is that they are siloed, meaning they focus exclusively on one type of data or customer segment. However, by integrating across customer types and data sets, businesses can create a more holistic view of their customers and improve customer engagement.
Some startups in the customer data platform market such as Amperity, Invoca, MobFox, Getjar, GREE, Yahoo Japan, and Cresta are all AI based CDP now focusing on making it easier for businesses to extract customer insights from different sources, including Marketing Automation Technologies (MATs) like Hubspot and Act-On, CRM software like Salesforce and Oracleifter, omnichannel platforms like UberEats and Deliveroo, and social media platforms like Facebook and Twitter by making use of AI.
By doing so, these companies hope to make extracting customer insights less time-consuming as well as to provide a more unified view of the customer that can be used to improve business outcomes.
Top Startups funding in Global Customer Data Platform Market
- In June 2022, Invoca succeed in securing funding of $83M to expand conversation intelligence platform
- In 2021, Amperity raised around $100 million on valuation of $1 billion. The most of the funding came from series C. In July 2021, the company had raised $50 million
- In May 2021, Invoca acquired DialogTech for $100 million for betterment of its ambitious conversation intelligence platform