CUSTOMER DATA PLATFORM MARKET ANALYSIS

Market Challenges And Opportunities

Global Customer Data Platform Market Drivers:

Rise in importance of maintaining customer satisfaction and relationship is major growth driver

Metrics such as customer satisfaction determine how efficiently services or products of a company fulfill the expectations of its customers. Such metrics predict the future purchases and customer loyalty of a company. This in turn helps in growth and revenue of the business. Several companies make use of CDPs for increasing customer satisfaction, CPS efficiently isolates data as it creates a unified approach for storing and accessing customer data. When the customer data gets stored and arranged in a single customer view, it allows the user to create hyper-specific segments aiding in development of more effective marketing campaigns, reinforcement of outreach efforts and improvement of product launches. Thus, growing importance of maintaining customer relationships is driving the market growth.

Growing analysis of real-time and personalized data to augment the market growth

The adoption of customer data platform is increasing due to rise in demand for personalized and real-time analytics. With the increasing availability of real-time data collection and analytics, several organizations are leveraging the potential for real-time data analytics and are focusing on incorporation of real-time data in their advertising, engagement, and marketing strategies. This in turn is creating high demand for customer data platforms, which in turn is anticipated to augment growth of the global customer data platform market over the forecast period.

Global Customer Data Platform Market Opportunities:

Growing awareness regarding customer satisfaction and increasing demand for better shopping experiences is anticipated to offer multiple business opportunities in the global customer data platform market over the forecast period. Moreover, rise in focus on providing real-time and tailored customer care by marketers and advertisers is also creating several growth opportunities in the market. For instance, in May 2021, Salesforce revealed that it has modified its customer data platform service for helping organizations prioritizing first-party consumers more personally.

Outbreak of Covid-19 pandemic has also created many growth opportunities in the global customer data platform market. The pandemic played a major role in rise in data solution demand. During this period, the retail and government shifted towards digitalization for keeping their business operation running without any difficulties. The amount of data generated during this period was large all over the world. Thus, demand for customer data platform increased due the pandemic.

Global Customer Data Platform Market Restraints:

Growing concerns regarding data privacy and security to impede the market growth

Due to digitalization, all the activities are being carried out online, due to which number of cybercrimes is increasing all over the world. The rising cybercrimes threaten the safety of data of people which leads to financial or other losses. The privacy and security of data is essential, as the data is generated by Billions of users all over the world. However, affording such security measures can be a challenge for some enterprises. Thus, this in turn is expected to hinder the demand for customer data platform in some sectors. Nevertheless, the market players are seeking the development of solutions to overcome these challenges, which in turn is likely to support the market growth.

Lack of flexibility of customer data platforms to hamper the market pace

Most of the customer data platforms are developed on rigid data model that can clash with the data architecture of a company. Businesses are required to adhere to their schema if they need to use these platforms. The data team requires to work for longer time to re-architect their data in order to meet the specific models of customer data platforms. Thus, due to all these issues occurring from rigidity of CDPs, businesses hesitate to adopt these solutions. And this in turn is expected to hinder growth of the market.