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Key Trends in CDP Development in 2024

Date: 2023-12-21 | Time of reading: 4 minutes (842 words)

Trends for 2024 in Customer Data Platform

In the modern world, user data lies at the core of innovative tools rapidly advancing and benefiting businesses. Guided by established customer behavior models and real-time insights, companies make strategic decisions, outpacing their competitors.

This happens for companies equipped with the right software aiding them in achieving data management goals and enhancing the customer experience. Is there a single solution for these tasks? Yes, there is - it's a specialized Customer Data Platform (CDP).

By 2026, the CDP market is expected to exceed $5.7 billion, doubling global data volumes.

As more resources flow into customer data, the demand for privacy, neural network capabilities, flexible management processes, and automation will rise.

Five Key Trends in CDP Development

Data management platforms have been rapidly evolving, particularly in recent years. As brands aim to better understand and efficiently engage with their customers, an increasing number of companies are turning to CDP technologies for data collection, integration, and management to create unified customer profiles. Such profiles are essential for personalizing marketing campaigns and enhancing the consumer experience.

CDPs enhance data structure and organization without the need for a complete overhaul of existing customer support systems. Businesses leveraging AI or machine learning in their operations require a reliable CDP for seamless functionality.

In 2024, several prevailing trends stand out in the CDP market.

1. CDPs leveraging neural networks

Artificial intelligence is transforming every industry, and the CDP industry is no exception. This trend is expected to continue in the near future, with machine learning algorithms becoming commonplace for data analysis, scenario creation, and planning that influence marketing strategies.

For instance, neural networks will be utilized to analyze human behavior and forecast future purchasing trends. This information will then be applied in targeted marketing strategies.

The Altcraft Platform's CDP includes an ML module called “Best Send Time.” This function aims to enhance customer service quality through a self-learning algorithm analyzing buyer behavior to determine the optimal time for sending an email to a specific subscriber. This increases the likelihood of the recipient opening the email. Predictive analytics significantly boosts marketing efficiency.

Send Time within AltcraftBest Send Time within Altcraft Platform

Improving service efficiency through ML is a recent trend. For instance, in June 2023, Figma released a major software update. Alongside various enhancements, Figma introduced an artificial intelligence plugin enabling users to tackle tasks like generating icons on demand, creating diverse interface element variations, and modifying information within them.

On-demand icon generationExample of on-demand icon generation

On-demand interface generationExample of on-demand interface generation

2. Enhanced focus on user data protection

Data protection laws are tightening, prompting audits to identify breaches in data collection, storage, and utilization by companies.

By 2024, CDPs are expected to prioritize data protection more rigorously. Platform providers must ensure compliance with legislation, and transparency regarding the collection, storage, and use of customer data is crucial.

3. Real-time data processing

One of the significant advantages of CDPs is aggregating customer data from various sources to create a unified customer profile. However, this process is time-consuming, and the obtained data may lag behind real-time information.

Profile in Altcraft PlatformUnified customer profile in Altcraft Platform

This challenge is tackled through the development of CDPs that collect and process information in real-time, enabling businesses to make quicker managerial decisions based on up-to-date data. CDPs analyzing customer behavior online, like Altcraft Platform, gather and analyze data immediately upon receipt.

The CDP Altcraft Platform provides detailed analytical reports, allowing for campaign effectiveness tracking and informed decision-making. These include:

  • Channel reports

  • Traffic reports

  • Goal reports

  • Sales funnel

  • Click map

  • Return reports

  • Undelivered message reports

  • LTV (Lifetime Value) reports

  • Audience growth reports

  • Cohort analysis

Channel report in Altcraft PlatformExample of a channel report in Altcraft Platform

Traffic report in Altcraft PlatformExample of traffic report in Altcraft Platform

4. Demand for multichannel capabilities will continue to rise

Today, consumers engage with companies across multiple channels, including email, social media, and messengers. Consequently, to meet customer expectations, companies must ensure consistent interaction across all touchpoints.

This anticipates a surge in demand for CDPs with multichannel capabilities, such as the omnichannel CDP Altcraft Platform. It aggregates and integrates customer data from various channels to develop personalized marketing strategies and enhance customer service quality.

Channels of interaction with customersChannels of interaction with customers on Altcraft Platform

5. Priority on integrating CDP with various marketing services

In recent years, marketing automation platforms have rapidly advanced, aiding companies in automating marketing operations and personalizing strategies, with customer data utilization being a primary focus.

As a result, by 2024, integration between CDP and various marketing platforms will become inevitable. This will enable companies to leverage all customer data for developing more personalized and effective marketing campaigns.

Integration with other servicesIntegration of CDP Altcraft Platform with other services

Conclusion

Are you harnessing the benefits of customer data? Most modern CDPs come equipped with robust analytical systems capable of storing, enriching, and analyzing data for profit generation. Unfortunately, many users are unaware of these capabilities. Currently, 59% of marketers primarily use CDPs as simple data collection and storage tools.

It's time to think bigger: CDPs are crucial in creating a unified data ecosystem, extracting insights, and implementing data-driven strategies.

Primary source: Lytics

*products of Meta, a recognised extremist organisation in the Russian Federation

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Author: Ksenia Yugova

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