The Future of CDP: Trends and Forecasts That Will Transform Direct Marketing

Marketers have access to massive amounts of data, but often this creates more problems than solutions. Information is generated rapidly, yet organizing it and planning its use turn into real challenges.

Many companies spend significant resources without achieving corresponding results.

The problem intensifies when marketing tools are not integrated: valuable insights get lost, and decisions are based on incomplete or outdated data. Campaigns become less effective, and communication with customers becomes inconsistent.

Therefore, the Customer Data Platform (CDP) rightfully attracts increased attention from marketers and has become a necessary tool for successfully implementing company strategies. According to Gartner, 67% of respondents have already implemented a CDP and have appreciated its benefits.

Omnichannel communication, personalized offers, continuous A/B testing with automatic selection of the best messages, AI-generated campaigns, and customer segmentation based on behavior — all these are current capabilities of CDPs. Thanks to them, brands not only improve marketing metrics but also increase revenue.

For example, after implementing the Yespo CDP, direct channels of some ecommerce companies increased their effectiveness and began contributing from 8.9% to 21.6% of all sales.

But what does the future hold for CDPs? To delve deeper into the topic, let's consider the current state of the market, trends, and forecasts.

The Significance of CDPs in 2024

Despite the growing CDP popularity, only 17% of marketers are fully leveraging them.

Often, problems begin at the implementation stage. Companies may lack clear information about all the capabilities of a CDP. The platform may lose businesses because it explains its functionality either too complexly, not in enough detail, or not at all.

Another reason for underuse is the lack of a clear goal in implementation. Without a clear strategy and defined objectives, the system turns into just a set of tools that do not bring the expected benefits.

The desire for quick results is another common issue. Marketers may want to achieve business goals here and now (and who are we to judge? 😊). But a CDP is a tool that shows its effectiveness in the long run. And there's a reason for that.

For quality personalized communication with customers, the system first needs to collect enough information about them, train algorithms to recognize behavioral patterns, and set up integrations so that data from different sources are correctly combined. Without these stages, the CDP may remain just a set of tools that do not have a real impact on the business.

A customer data platform is especially relevant for companies operating in the European market. McKinsey conducted a study and found that over a quarter of Europeans are carefully tracking their expenses.

For marketers, this became a real challenge: how to offer buyers relevant products when the target audience's spending decreases, and needs change daily?

It's impossible to manually select offers for each client — a single specialist or even a team cannot collect such an amount of data, process it, and turn it into what customers need at the moment. But for a CDP, this isn't a problem.

For example, you can implement product recommendations from the Yespo CDP on your website or in messages, and the system will do everything for you: analyze the customer's previous activity, collect other data about them from various sources, and offer the most relevant purchase options.

Our clients have already implemented product recommendations and achieved the following results:

• Liki24: Conversion increased by 70.8% in mass email campaigns.
• Comfy: 49% of orders come from recommendation blocks in promotional emails.

Product recommendations are a must-have for the B2C segment, which occupies a significant share of the CDP market and is the fastest-growing one. Ecommerce businesses actively use CDPs to personalize customer interactions and improve user experience. Every day, B2C companies need to combine multiple channels, collect and analyze vast amounts of information, so a customer data platform is essential for every B2C marketer.

A CDP helps collect data from different sources and create detailed customer profiles — allowing marketers to segment consumers and send personalized messages even in mass campaigns.

Despite B2C being the main driver of CDP development, other businesses can also use them. The B2B segment shows significant CDP adoption, especially in technology, finance, and manufacturing sectors.

For example, the Ukrainian alcohol holding BAYADERA GROUP uses the Yespo CDP and works with two segments:

• B2B: Retail online and offline retail.
• B2C: Distribution, corporate orders.

Key Trends in Modern CDPs

Over the past year, the CDP market has continued to develop, providing companies with more opportunities to optimize marketing strategies. We have noticed five main trends.

1. Increasing Demand for AI Integration

Artificial Intelligence (AI) is a crucial factor in the success of CDPs. It analyzes large volumes of data, predicts customer behavior, and helps unify the customer experience through personalized recommendations.

AI also helps automate the creation and management of marketing campaigns, reducing time and other resource expenditures for the team. Artificial intelligence can take over routine tasks: text editing, translation, determining the best time for running campaigns, improving email subjects and preheaders, and more.

By using AI built into the CDP, marketers can more easily focus on strategic tasks and increase the effectiveness of campaigns.

2. Data Consolidation

According to Forbes, 88% of marketers use data from various services to better understand each customer. A customer data platform collects data from many sources (CRM, websites, direct channels, mobile applications, offline stores) and combines them into a single customer profile.

This provides companies with a complete overview of consumer behavior and preferences, as well as more accurate data analysis.

3. Enhanced Security and Compliance

CDPs help companies comply with GDPR, CCPA, LGPD, SOC, and other data protection laws and standards, preventing fines or sanctions due to regulatory violations.

A survey by Moody's found that demand for cybersecurity is growing: from 2019 to 2023, respondents increased spending in this area by 70%. To protect the company’s data from unauthorized access, CDPs use encryption and cybersecurity technologies:

• Data encryption at rest and in transit
• Multi-factor authentication
• Distributed protection systems
• Zero Trust approach
• Threat monitoring and response
• Privilege and access management, etc.

4. Omnichannel Marketing

A customer data platform allows the integration of all customer interaction channels into a single platform, ensuring a holistic and consistent customer experience at all stages.

In the Yespo CDP, you can communicate with consumers through:

• Website: Widgets, App Inbox, web notifications
• Mobile App: In-App messages, App Inbox, mobile notifications
• Messengers: Viber, Telegram-bots
• Email
• SMS

5. Real-Time Data Updates

CDPs provide real-time data updates, allowing prompt responses to changes in customer behavior and offering relevant proposals. Over 60% of marketers state that real-time data plays an important role in their marketing strategy, and 58% notice increased customer satisfaction levels.

Predictions for CDP Development: What to Expect in the Coming Years

Analysts believe that by 2028, the global CDP market will triple: annual spending on customer data platforms will grow from $2.13 billion to $7.91 billion. However, these are not all the changes that may await CDPs. Let's consider five more predictions.

1. Expansion of CDP Functionality

CDPs are expected to continue enhancing their analytical capabilities, offering new tools for deep data analysis and forecasting. For example, implementing natural language processing technologies will allow better analysis of textual data from customer feedback and social media interactions.

CDPs will increasingly integrate with other enterprise systems like ERP (Enterprise Resource Planning), CRM, and marketing platforms, ensuring more efficient data management and business processes. According to IDC, by 2026, over 50% of large enterprises will use integrated CDP solutions.

2. Evolving into the Core Software

The customer data platform is gradually becoming a core part of the MarTech (marketing technology) infrastructure.

Previously, CDPs were niche technologies used alongside several other solutions. Now, with an increasing number of tools and touchpoints, questions arise about effective teamwork and rational resource allocation.

The need to connect additional sources, services, and analytical systems will lead companies to choose one comprehensive solution instead of several point solutions. A CDP as core software is a solution that will meet all these needs.

Companies will build long-term plans focused on the CDP — an integrated platform where new tools and services can be easily implemented. Customer data platforms will have more seamless integrations and improve data management efficiency.

This means that CDP providers need to more clearly articulate and expand their offerings to become the core software for companies.

3. Increased Investments

Investments in CDP development are expected to grow as companies increasingly realize the importance of effective customer data management.

According to Mordor Intelligence, by 2028, the global CDP market will triple: annual spending on customer data platforms will grow from $2.13 billion to $7.91 billion.

Increased investments will allow for the development and implementation of new features and capabilities in CDPs. Companies will continue investing financially in improving cybersecurity measures to protect customer data, which will become even more important amidst growing threats and new regulatory requirements.

Another reason for increased investments is businesses' desire to occupy stronger market positions. Competition is growing, so the fight for customers' attention and money becomes more intense. Implementing a CDP increases the chances of success.

Recognizing this, companies are increasingly including CDPs in their long-term plans and budgets. Investments in CDPs are investments in sustainable business development, helping adapt to market changes and remain competitive.

4. Company Mergers

Large companies will acquire smaller ones or merge to strengthen market positions, expand functionality, and accelerate development.

For example, in 2023, Adabra and Neodata merged into Blendee. Adabra was a platform for marketing automation, while Neodata focused on data management and advertising.

The merger allowed them to offer comprehensive solutions for marketers seeking tools to better understand their audience and manage multichannel campaigns. Such a merger opens access to new markets and accelerates product innovation.

Later that year, Spotler Group combined Squeezley and Datatrics into Spotler Activate. Squeezley was a platform for personalized campaigns and customer data management, while Datatrics specialized in automation and behavioral data analytics.

Their merger created a comprehensive solution for marketing automation and precise analysis of customer behavior, making Spotler Activate attractive for businesses aiming to adapt their marketing strategies flexibly to customer behavior changes.

5. Evolution of the Regulatory Landscape

New regulatory requirements for data protection are expected in the future, stimulating companies to implement up-to-date security measures.

CDPs will increasingly focus on ensuring compliance and transparency in data processing, enhancing trust from customers and regulators. Companies are compelled to spend more on audits, legal consultations, and technologies to ensure compliance with laws.

Gartner states that by the end of 2024, 75% of the world's population will be under personal data privacy regulations. Therefore, expenditures on regulatory compliance are justified: violations can lead to significant fines and reputational losses.

Why Yespo Is the CDP of the Future

Already, over 3,500 businesses from 23 countries have chosen the Yespo CDP, including 300 enterprise-level companies. In the Ukrainian market, 8 out of 10 leading brands use the Yespo CDP:

Why do companies love Yespo? Let those who have already tried the functionality of the Yespo CDP answer:

"After a long search and analysis of services, I chose Yespo. I am completely satisfied with the quality of services and the team's support. Now we are increasing the number of campaigns. Customer loyalty and engagement have grown by 30%."

 — Dmytro Verba, Owner of Le Gourmet

"In the Yespo CDP, I have more control over campaigns and more opportunities to change sending conditions. Often, I can change something in the email myself without distracting anyone from the team, and do it in 10–15 minutes instead of waiting a week."

 — Svitlana Klymenko, Marketer at BUKI

"We implemented each trigger quite quickly, and this is one of the reasons why we chose the Yespo platform for this task instead of using our own resources."

 — Anna Shchur, Head of Promo & Retention at Prom.ua

"Thanks to the SPA, our conversion rate increased 3.9 times. The script works more correctly, more stably, and loads better. We really like multilingual widgets and geotargeting!"

 — Marketer at DeepStateMap

"We chose Yespo to automate and unify the company's communications because we understood that the platform would meet our needs. The choice was also influenced by favorable pricing and the fact that the brand is Ukrainian. We are satisfied with working with the Yespo team, who always meets us halfway and responds to solve our issues."

 — Lev Ratynskyi, Head of Digital Marketing at Dnipro-M

We thank our clients for their trust — it is very gratifying that they chose the Yespo CDP among other solutions. Your successes are our main motivation. We are always here to support your business at new levels: we are constantly improving. In recent years, we’ve implemented a bunch of new functionality we’re proud of. Let us tell you a bit more about that.

AI-Generated Mobile Campaigns

Instead of spending hours creating campaigns manually, artificial intelligence in the Yespo CDP generates content for you. You need to select the segment to which the campaign will be sent and define the campaign goal. As a result, AI will create:

• A description of the campaign, its purpose, and duration
• Text messages within the workflow and explanations of their goals
• Benchmarks for analyzing campaign results

AI-Generated Emails

With artificial intelligence, creating emails is ten times faster. You can generate an email in just four steps:

1. Specify basic information: Logo, industry, target audience, tone of voice, language, etc.
2. Formulate a prompt: Write what the email should be about and specify how many emails you need.
3. Review the result: Make changes if necessary.
4. Your email or campaign is ready to go.

Integration with WooCommerce

Setting up the plugin takes 5 minutes and does not require developers. The integration of Yespo CDP with WooCommerce ensures continuous data exchange between platforms, allowing automatic synchronization of information about purchases, customer behavior, and preferences.

Product Recommendations in Mass Campaigns

Now even email campaigns to a large subscriber base can be personalized. Add a block with AI recommendations to messages and promptly respond to customer needs: the algorithm selects the most relevant offers for each person based on their data.

Updated Product Recommendation Algorithm

The new model better understands customer needs, generating even more relevant recommendations. The differences between the old (traditional) and new (transformer) models are depicted in the table:

Our clients have already tested the new model and achieved the following results:

• Puma:
  • Conversion increased by 721%
  • Orders from the recommendation block increased by 932%
  • CTR increased by 194%
• Dnipro-M:
  • Conversion increased by 43%
  • Orders from the recommendation block increased by 116%
  • CTR increased by 105%
• Yakaboo:
  • Conversion increased by 10%
  • Orders from the recommendation block increased by 126%

Predictive Segmentation

This machine learning-based tool predicts the likelihood of customer purchase or churn, forming appropriate segments. It simplifies life even for the most professional marketers because no human can process the volume of data that passes through predictive AI.

Machine learning algorithms can process vast amounts of information in seconds and highlight the most important. Compared to manual methods, the AI approach significantly increases the accuracy and efficiency of segmentation: you can save up to 50% of your marketing budget with predictive segmentation.

Simplified A/B Testing

The "One from Many" block is a continuous A/B test that improves results with each message and ensures reaching the maximum CTR.

This tool is used in campaign workflows and delivers the most effective message from the options provided. The system first tests each one by sending it to a portion of subscribers. Then it considers the results and selects messages with higher CTR.

To determine the best option, previous activity and the last messages sent to the contact are also considered.

Our clients who used this block have already seen positive changes in metrics:

• ANC:
  • CTR doubled
  • Average order value increased by 23%
• Yoga-Go:
  • Users who started training sessions increased by 33%

We have many plans aimed at continuously improving the CDP to help Yespo clients increase profits, optimize marketing costs, and enhance personalized user interactions.

If you are considering implementing a CDP but are unsure of what exactly your business needs, sign up for a demo. We have much more functionality than described in this article and are ready to show how our solutions can help you achieve even greater success.

Also, stay tuned for updates to be the first to know about new features and tools that will help your business grow.

So, What Will Change?

CDPs will continue to play an important role in the digital transformation of business, offering new opportunities for data analysis and personalized customer interaction.

Currently, only 17% of marketers are fully using CDPs, but this figure is expected to grow alongside technological developments. The main trends already shaping the CDP market include the strengthening role of artificial intelligence for personalization and automation, data consolidation from various sources, enhanced security, integration of omnichannel strategies, and real-time data updates.

Future forecasts also indicate further expansion of CDP functionality, elevation of their status as core business software, increased investments, company mergers, and strengthening regulatory requirements.

Customer data platforms like Yespo are already indispensable tools for many businesses. CDPs continue to improve, helping companies occupy stronger market positions and provide more personalized marketing campaigns.

Investments in the development of customer data platforms will grow, and companies that actively use such tools will gain significant advantages in the market, increasing their marketing metrics and revenue. Forecasts indicate that by 2028, the global CDP market will triple.

Without integrating a CDP, companies will find it challenging to remain competitive in a world where personalization, efficiency, and data security are critically important. Those who implement these platforms into their business processes will not only maintain their market positions but significantly strengthen them, ensuring stable growth and future success.

Special Request Inline