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
Satya Nadella
CEO of Microsoft
Quote character We’ve seen two years’ worth of digital transformation in two months.
Source: Microsoft FY20 Q3 Earnings Call

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
Bryan Gregg
Senior Partner,
McKinsey & Company
Quote character In the past 3 months, we have witnessed 10 years of digital commerce adoption. The pace of adoption, scale and change is unlike any other time in history.
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:
Insights and reporting:
Customer privacy:
% of respondents
Dara Treseder
Dara Treseder
SVP, Head of Global Marketing & Communications, Peloton
Quote character For those of you sitting on treasure troves of data you’ve already collected, it’s time to do something with it.
Source: Data-Inspired Creativity

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
Access and actionability
Data unification and comprehensive customer profiles
Data standarization
CDP & GDPR Compliance
% of respondents
Sara Spivey
Sara Spivey
CMO, Braze
Quote character Today, there’s no shortage of tools to collect and organize customer data. What’s lacking is the ability to translate mountains of data into actionable insights.

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.
Source: Why Too Much Data Is A Problem And How To Prevent It

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?
A solution that unifies data into real-time customer profiles that can be actioned in other tools
A solution that enables basic personalization based on customer behaviors (ex. triggers an email campaign after signup)
A solution that recommends high-value audiences (ex. suggests an audience propensity to buy)
A solution that enables audience-based campaigns (ex. email series to cart abandoners)
A solution that enables user-level personalization in real time (ex. tailored product or website experiences)
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
Ability to accelerate the developement of a single customer view
Allowing users to access standardized data across business units
Enabling real-time personalization (e.g. ads, in-app) in marketing and sales processes
Enabling regulatory compliance and privacy protection for customer data
Leading data governance practice and data cleansing process ensuring high data quality
Pre-built and custom integrations allowing faster time to market without skilled resurces internally
Out-of-box capability to collect data from omni-channel
Product vision of the CDP from the vendor
Ranked popularity of customer data objectives
(Average rank, lower is better)
Alvina Antar
Alvina Antar
CIO, Okta
Quote character Flexibility is critical to survival.

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.
Source: The Challenge: Leveraging Existing Technologies

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
Insights and reporting
Customer privacy
AI and machine learning
Digital advertising
% of respondents
Tom Litchford
Tom Litchford
Head of Worldwide Business Development, Retail at AWS
Quote character Retailers are moving beyond traditional data analytics to apply ML to get counterintuitive and previously unseen insights that help them respond to business trends in near real-time during the pandemic.
Source: 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
Aaron Carter
Manager, Data Sciences & Digital Analytics, Staples Canada
Quote character A customer data platform gives us the best shot we’ve ever had at obtaining a single view of each and every customer.
Source: 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
Sales / revenue growth
Customer acquisition
Cost savings as a result of implementing CDP
Faster time to market on my business offerings
Reduction in customer churn
Don’t plan to measure return
% of respondents
Daryl Boden
Daryl Boden
SVP, Technology, Fox
Quote character I have no idea what the next challenge is that our business will face, but with an integrated data pipeline and a single view of our customers, we’re as well positioned as we can be for the future.
Source: 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 to <=$100K
>$100K to <=$500K
>$500K to <=$1M
Do not know
% of respondents
Joe Chernov
Joe Chernov
CMO, Pendo
Quote character Mashing up clean data from multiple sources, using it to prompt timely and relevant communications, and visualizing it in a common BI interface...is changing the way individual companies are taking their solutions to market.
Source: 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)
Large Enterprise (76)
Enterprise (184)
Mid-Market (279)
Small Business (191)
Small Business (191)
High (<25% increase) Medium (-10% to 25%) Medium (-10% to 25%)
Scott Brinker
Scott Brinker
VP of Platform, Hubspot
Quote character We’re still early in the digital transformation journey.

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.
Source: Forget the Martech 5000. Try the Martech 500 Million.

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?
Yes No
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Deliver 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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Continue your CDP education

If you follow the six steps outlined in our guide, you'll have much more success finding the right CDP that fits your company's unique needs. Choose The Best CDP In 6 Steps
Our buyer’s guide for CDPs will help you understand when it’s time to buy a CDP, which features you need, and how to evaluate the various CDP vendors out there. Download CDP Buyer's Guide
Our CDP RFP guide provides best practices, frameworks, and an RFP template to help you identify your CDP requirements, create an effective RFP, and select the right CDP vendor. Visit CDP RFP Guide
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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