2030, Today
A survey of over 4,000 customer data decision makers to gauge current and future predictions for the CDP industry.We are experiencing 2030 in 2020
On the back of COVID-19, digital transformation roadmaps have been accelerated by up to a decade. Digitally-native and legacy companies have seen a surge of customers migrating to digital channels.
This is a permanent shift that won’t be unwound.
If we’ve seen 10 years growth in just 3 months, just think about what the world might look like in 2030.
- Every business will be an internet business.
- Every business will be working across channels and devices.
- Every business will have dozens if not hundreds of tools in their tech stack.
- Every business will require an up-to-date, real time view of their customers.
To cater to these new realities, customer data platforms have become the must-have infrastructure for any serious digital-first business.
To better understand the effects they’re having on digital transformation efforts across the world Segment, the #1 customer data platform, surveyed over 4,000 decision makers to gauge current trends and future predictions.
Satya Nadella
CEO of MicrosoftSource: Microsoft FY20 Q3 Earnings CallWe’ve seen two years’ worth of digital transformation in two months.
Our findings & predictions
Customer data is the new currency
As digital channels continue to grow and fragment, customer data will help companies achieve greater revenue and efficiencies. 58% of customers expect customer data to drive revenue growth for their company.
Digital transformation efforts will drive CDP adoption
As the world begins a mass exodus to digital, customer data platforms are becoming a growing line item in technology budgets. 47% of respondents say they will increase their CDP budget by over 25% in the next 5 years.
CDPs will drive the customer experience
Delivering a personalized, targeted customer experience is a key facet of a successful digital transformation. None of this possible without a CDP. 73% of respondents say a customer data platform will be critical to their customer experience efforts.
Bryan Gregg
Senior Partner,McKinsey & Company
Source: McKinsey: 75% of Americans have changed brands during the pandemic
Customer experience has become the #1 business priority
And businesses are investing in customer data platforms to deliver it.
73% say a customer data platform will be critical to their customer experience efforts.
How do you plan to use a customer data platform? (business use cases)
Customer experience:
73%
Insights and reporting:
55%
Customer privacy:
51%
% of respondents
Dara Treseder
SVP, Head of Global Marketing & Communications, PelotonSource: Data-Inspired CreativityFor those of you sitting on treasure troves of data you’ve already collected, it’s time to do something with it.
Data silos are being torn down
To drive their customer experience efforts, businesses are hungry for data accessibility and data unification.
61% say they would like increased access to data across the org.
How do you plan to use a customer data platform? (data collection use cases)
Data Collection
73%
Access and actionability
61%
Data unification and comprehensive customer profiles
58%
Data standarization
57%
CDP & GDPR Compliance
48%
% of respondents
Sara Spivey
CMO, BrazeSource: Why Too Much Data Is A Problem And How To Prevent It
Brands need to be able to listen, understand, and act in order to unlock the true value of data and serve customers relevant and memorable experiences.
Personalization takes on a new urgency
Businesses are turning to CDPs for personalization, real-time customer profiles, and multi-channel campaign orchestration.
61% say that a CDP will be critical to their personalization efforts.
To enable personalization, what type of solution is your business seeking?
61%
A solution that unifies data into real-time customer profiles that can be actioned in other tools
57%
A solution that enables basic personalization based on customer behaviors (ex. triggers an email campaign after signup)
51%
A solution that recommends high-value audiences (ex. suggests an audience propensity to buy)
46%
A solution that enables audience-based campaigns (ex. email series to cart abandoners)
40%
A solution that enables user-level personalization in real time (ex. tailored product or website experiences)
39%
A solution that orchestrates campaign across channels
% of respondents
A hunger for data reliability is driving change
Organizations see accurate, real-time customer data as central to their digital transformation efforts.
What business objectives do you hope to achieve with a customer data platform?
Capability to enable reliable and scalable customer data
3.8
Ability to accelerate the developement of a single customer view
4
Allowing users to access standardized data across business units
4.2
Enabling real-time personalization (e.g. ads, in-app) in marketing and sales processes
4.3
Enabling regulatory compliance and privacy protection for customer data
5.2
Leading data governance practice and data cleansing process ensuring high data quality
5.4
Pre-built and custom integrations allowing faster time to market without skilled resurces internally
5.6
Out-of-box capability to collect data from omni-channel
6
Product vision of the CDP from the vendor
Ranked popularity of customer data objectives
6.5
(Average rank, lower is better)
Alvina Antar
CIO, OktaSource: The Challenge: Leveraging Existing Technologies
I’ve seen people spend years and millions of dollars trying to implement a solution using the wrong technology only to come to this realization.
As a technology leader, you have to stay current to evolving technology trends and have confidence to take calculated risks.
AI and ML use cases are proliferating
As marketers increase their use of customer data, they’re looking for new ways to deploy it.
49% say they will use a customer data platform for AI and machine learning use cases.
What use cases are you trying to enable with a CDP?
Customer experience
73%
Insights and reporting
55%
Customer privacy
51%
AI and machine learning
49%
Digital advertising
47%
% of respondents
Tom Litchford
Head of Worldwide Business Development, Retail at AWSSource: How COVID-19 has accelerated a new digitized normal for retailers
Expectations for customer data platforms are high
Marketers' expectations for customer data platforms are at an all-time high, and are increasing every year with unprecedented magnitude.
56.8% say they expect ROI of 5-10x from investing in a CDP.
What ROI do you expect from investing in a CDP?
% of respondents
Aaron Carter
Manager, Data Sciences & Digital Analytics, Staples CanadaSource: How Staples Canada digitally transformed their tech stack
Marketers are doubling down on business value
Marketers are less focused on generating leads and are increasingly concerned about driving revenue and customer satisfaction.
58% say they expect a CDP to deliver revenue growth for their business.
How do you intend to measure the ROI of a CDP?
Improvement in customer satisfaction/NPS
60%
Sales / revenue growth
58%
Customer acquisition
54%
Cost savings as a result of implementing CDP
53%
Faster time to market on my business offerings
43%
Reduction in customer churn
32%
Don’t plan to measure return
1%
% of respondents
Daryl Boden
SVP, Technology, FoxSource: Customer data win-win
COVID-19 has accelerated an increase in CDP budgets.
As business buyers re-evaluate their technology and growth plans for the year, investments in CDP continue to grow unabated.
62% say they will spend over $100,000 on their CDP.
On an annual basis, how much will your company spend on a CDP?
<=$10K
9%
>$10K to <=$100K
25%
>$100K to <=$500K
30%
>$500K to <=$1M
21%
>=$1M
11%
Do not know
4%
% of respondents
Joe Chernov
CMO, PendoSource: CRM Alone Isn’t Enough to Drive Growth. Here’s Why.
And those budgets will continue to grow
In spite of business uncertainty, CDPs remain a strategic priority for businesses in the years ahead.
On average, 47% of respondents say they will increase their CDP budget by over 25% in the next 5 years.
From 2020-2025, how much do you expect your CDP budget to grow?
Global/ Multi-National (46)
37%
56%
7%
Large Enterprise (76)
54%
41%
5%
Enterprise (184)
54%
42%
Mid-Market (279)
49%
48%
Small Business (191)
44%
53%
Small Business (191)
48%
52%
High (<25% increase)
Medium (-10% to 25%)
Medium (-10% to 25%)
Scott Brinker
VP of Platform, HubspotSource: Forget the Martech 5000. Try the Martech 500 Million.
IDC predicts that we will grow from around $12 trillion in worldwide GDP driven by digitally transformed businesses in 2018 to a whopping $50 trillion in 2023.
Companies are confident in the value of CDP
Despite being an emerging category, retention of CDPs remains high.
86% plan to continue using a customer data platform.
Do you plan to continue using a customer data platform?
85%
15%
Read the full report
DownloadDeliver the customer experience for 2030, today.
As this unprecedented explosion of data and digital adoption continues, customer data platforms have become the must-have infrastructure for any serious, digital-first business.
It may have become 2030 overnight, but you can get started today.
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The best companies are built on unified customer data
Methodology
Survey conducted in conjunction from July 2nd-15th
4,684 responses
Respondents from the following industries: Internet, Software & Services, Manufacturing, Financial Services, CPG, Healthcare, Media, Education, Professional Services
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the full report
