The latest report highlights how internal silos, changing data privacy laws and confusion around what a Customer Data Platform (CDP) does is preventing companies from getting the most from their data.
With the CDP space becoming more crowded than ever, there is confusion around what a CDP can and should do – as well as which CDP is right for each specific business or organisation. Tealium released the “Tealium State of the CDP Report 2020” which details the enormous extent of this uncertainty and captures the real-life experience of organisations using CDPs.
It’s increasingly clear that successful digital transformation rests on managing and utilising customer data — an organisation’s most valuable asset. If companies want to solve business challenges like organisational silos and poor customer experiences, they need the ability to orchestrate data across the enterprise. Additionally, with several new privacy laws going into effect, the risk for companies who do not understand or comply with these regulations is larger than ever.
In order to demystify the confusion around CDPs, Tealium surveyed over 300 U.S. decision-makers in marketing and data/analytics on how they are leveraging CDPs today, the challenges they face with current vendors and their future plans for CDP technology. The results reveal that many organisations are still searching for the right solution, even after purchasing a CDP.
Surprisingly, the top reasons why organisations are switching CDPs include lack of third-party integrations, bad customer service and lack of support for compliance with data regulations. The study also found that it’s more critical than ever to find the right CDP for your business in order to remain compliant with the growing list of regulations, as over 62% of respondents said that CDPs will be absolutely essential for complying with data regulations by 2025.
“This survey is a wake-up call for everyone who uses customer data: while many have an existing system that’s called a CDP, half of those systems don’t meet even the most basic CDP requirements. Even fewer provide other important features,” said CDP Institute Founder, David Raab. “Companies need to be rigorous in defining what they need from a CDP and be sure they find a solution that can actually provide it.”