Customer data platforms act as a centralised system that collects, integrates, and manages customer data from various sources to provide a unified view of customers for effective marketing and personalisation purposes. With IDC forecasting that the CDP market will surpass $5.7 billion by 2026, there’s no doubt that CPDs are growing in popularity.

However, when asked whether they know what a Customer Data Platform is, surprisingly 39% of respondents didn’t. Of those that do know what a CDP is, 54% find that improved data quality is the key benefit of using the platform, followed by it being a unified hub for data collection (17%). Customer engagement came in third at 12%.

The survey found that 62% of marketers use Customer Data Platforms for their ecommerce marketing, with 43% confident in their ability to measure the ROI and impact of CDPs. Only 14% are not confident at all in their abilities to measure ROI.

Greg Blazewicz, CEO at SALESmanago, commented: “The research surprises me for two reasons. Firstly, because a large number of senior marketers don’t know what a Customer Data Platform is. And secondly, because even those that are using CDPs are facing barriers for adoption. CDPs should be embraced by all marketers, not just those in large enterprises. They provide marketers with a holistic understanding of each customer's journey, preferences, and behaviour across multiple touchpoints. CDPs are a necessity for marketing success.”

Of those that use Customer Data Platforms, integrating data from various sources into the platform is the biggest challenge respondents have encountered (57%). This was followed by ensuring data accuracy and completeness (47%) and difficulties training teams on how to effectively use the CDP to drive marketing initiatives (32%).