“The use of CDPs has been growing for several years now. According to Gartner’s 2019 Marketing Technology Survey, 43% of brands polled had a fully-deployed customer data platform (CDP) and 31% were working to implement one. As customer data complexity continues to increase exponentially, the use of CDPs will continue to rise.
Given that customer data is spread across all of a brand’s channels, as well as hidden away in data silos in various departments, in disparate software platforms, the number one function of a CDP is to unify all of that data in one location.
Brands can no longer rely on third-party cookies, so the ability to use first-party data has huge implications going forward. ‘Having a first-party data asset is also a game changer for things like lookalike audiences. As third-party cookies disappear and third-party data becomes less reliable, having the ability to model audiences based on first-party data becomes even more critical,’ said Ngo.
A report from Formation.ai entitled Brand Loyalty 2020: The Need for Hyper-Individualization revealed that 81% of the 2000 consumers that were polled indicated that they were willing to provide basic personal information in exchange for a more personalized experience. Conversely, a Gartner survey on marketing personalization showed that brands stand to lose 38% of those customers that have experienced poor personalization practices.
CDPs such as Amperity, BlueConic, Redpoint Global, Adobe Real-Time CDP, and ActionIQ have integrated AI into traditional CDP elements to unify customer data and provide real-time functionality and decisoning for marketers
An AI-based CDP can facilitate the collection, unification, cleaning, and standardization of customer data from across all of a brand’s channels, all of which enables the CDP to create hyper-segmented customer profiles. AI enables real-time decisioning based on current customer data, which facilitates the hyper-personalization that customers expect today. Additionally, an AI-based CDP allows brands to provide product suggestions and personalized ads based on both historical customer data and real-time ‘as it happens’ interactions between the customer and the brand.”