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What Is a Customer Data Platform (CDP)? 2025 Market Insights

Solega Team by Solega Team
August 26, 2025
in E-commerce
Reading Time: 24 mins read
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The Gist

  • Unified customer view. A customer data platform (CDP) delivers a 360-degree customer profile by integrating data from multiple touchpoints.
  • Enhanced personalization. CDPs empower businesses to create marketing campaigns that deeply resonate with their audience.
  • Strategic integration. CDPs function independently while also integrating seamlessly with a range of marketing tools and enterprise systems.
  • Enterprise impact. Modern CDPs extend beyond marketing to support sales, service, compliance, and AI-driven analytics, making them enterprise-wide engines.
  • Market acceleration. With valuations projected to surpass $10 billion by 2029, CDPs are shifting from “nice-to-have” tools to essential infrastructure for customer engagement and ROI.

Understanding and leveraging customer information is paramount to business success. Enter the customer data platform (CDP), a solution designed to unify and streamline customer data from multiple sources.

As businesses grapple with data deluge, the CDP emerges as a tool capable of centralizing this data into a unified customer view. What exactly is a customer data platform, and how does it distinguish itself from other data management solutions? Dive in as we demystify the role of CDPs in modern business.

Table of Contents

What Is a Customer Data Platform (CDP)?

A customer data platform is a specialized software that collects, organizes and centralizes customer data from various touchpoints in real-time, enabling businesses to create comprehensive and unified customer profiles. Customer data platform software autonomously integrates online and offline data sources — from social media interactions to in-store purchases — to ensure marketers have actionable and timely insights at their fingertips.

Related Article: Are Customer Data Platforms the Missing Link to Omnichannel Marketing Success?

CDPs Become Strategic Imperative for 2025 Growth

Customer data platforms evolved from marketing tools into strategic business foundations as organizations prioritize data-driven growth and compliance in 2025. 

The customer data platform industry is gaining fresh momentum in 2025 — but not in the way many expected. According to the July 2025 CDP Industry Update from CDP Institute, the market posted its strongest organic growth since 2022, with a 3.4% increase in employment across existing firms compared to 0.2% per period the last two years.

But this growth wasn’t driven by upstart innovation or a wave of venture funding. Instead, it reflects a reshuffling of the CDP deck — as established marketing platforms integrate CDP functionality and composable approaches gain traction (organic growth rate of 12.9%) with digitally mature teams. Don’t get too excited about composable CDPs; their employment contribution to the CDP World remains under 5%.

And the other major trend? Acquisitions. The period saw six CDP acquisitions, matching the total for the previous two years. Lytics, mParticle, Relay42, Informatica.

Customer data platforms have become essential infrastructure for marketing and digital experience strategies in 2025, with the market forecast to grow at double-digit rates through 2032. Organizations increasingly view CDPs as critical tools for unifying customer data, enabling personalized experiences and proving marketing ROI.

What Do CDPs Deliver?

According to the CMSWire Customer Data Platform (CDP) Market Guide for 2025, a CDP functions as a unified software system that aggregates, cleanses and organizes customer data from multiple sources into persistent customer profiles. This enables real-time personalization, campaign optimization and ROI measurement with data credibility.

According to industry research, the most successful CMOs transform cross-channel data into actionable insights that tie spend to growth. Without clean, unified data, even advanced AI or personalization strategies fail to deliver results.

CDP Companies Making Their Debut in H1 2025

Source: July 2025 Customer Data Platform Industry Update, Customer Data Platform Institute

Vendor Country CDP Type Year Founded Total Employees Total Funding ($ millions)
Imaginuity United States Delivery 1997 99* $ –
Ireckonu Netherlands Data 2015 58 $ –
Leo CDP Vietnam Data 2020 1 $ –
StellarAlgo Canada Campaign 2016 60 $16
Yotpo United States Delivery 2011 1,020* $436

Five Key CDP Trends Shaping 2025

AI Integration Deepens

Generative AI and machine learning now power predictive segmentation, real-time personalization and content generation within leading CDPs. The focus shifted from simple automation to orchestrating entire customer journeys and optimizing next-best actions across channels. Generative AI integration rapidly expanded across CDP platforms in 2025, moving beyond basic content creation to sophisticated applications including predictive analytics, journey orchestration and real-time recommendations.

The focus shifted from simple AI implementations to high-impact use cases such as predictive content orchestration, automated journey design, real-time recommendation engines and dynamic micro-audience creation. Vendors increasingly offer out-of-the-box AI features and connectors to large language models, reducing implementation complexity for enterprise customers.

Composable Architectures Gain Traction

API-driven, composable architectures allow CDPs to integrate with expanding martech and adtech stacks. This flexibility enables organizations to build best-of-breed solutions and adapt quickly to new channels or privacy regulations. Leading CDP and digital experience platforms now support composable, API-first approaches that allow organizations to integrate best-of-breed solutions. This architectural flexibility comes with increased complexity, requiring stronger collaboration between IT and marketing teams. Nearly every major vendor has adopted headless and composable options to meet enterprise demands for agility and scalability in their technology stacks.

Privacy Becomes Competitive Advantage

Stricter data privacy laws including GDPR, CCPA and new US state regulations drive CDP investment in consent management, data lineage and governance features. Advanced organizations view privacy as a differentiator rather than just compliance overhead. Advanced CDPs prioritize data lineage, consent management and security features as privacy regulations like GDPR and CCPA continue evolving. Organizations with mature technology stacks proactively build compliance into their operations rather than treating it as an afterthought. Privacy capabilities have become critical differentiators in vendor selection processes, particularly for enterprises operating across multiple jurisdictions.

360-Degree Customer Views Emerge

CDPs evolved to ingest transactional, behavioral, zero-party and offline data, enabling brands to deliver hyper-personalized experiences at scale through unified customer profiles.

Real-Time Activation Accelerates

Marketers demand instant segment activation across all channels with direct ties to business outcomes. CDPs respond with advanced analytics, attribution modeling and integrations with ad platforms, CRMs and customer experience tools.

A circular infographic titled “Shaping the Future of CDPs” showing five overlapping segments: Real-Time Activation, AI Integration, Composable Architectures, Privacy as Competitive Advantage, and 360-Degree Customer Views.
Infographic highlighting the five key trends shaping the future of customer data platforms (CDPs): real-time activation, AI integration, composable architectures, privacy as a competitive advantage, and 360-degree customer views.Simpler Media Group

Related Article: Customer Data Platforms See Growth, Lack New Players

What Are Leading CDP Differentiators?

Top-performing platforms distinguish themselves through powerful ETL capabilities, deduplication, identity resolution and open APIs for stack integration. AI-powered orchestration extends beyond segmentation to journey management, predictive analytics and creative generation.

Modern CDPs feature cloud-native, modular designs supporting traditional and headless deployments. Privacy-by-design approaches embed consent management, audit trails and compliance reporting rather than adding them later.

CDP Market Acceleration

The CDP market experiences notable growth across B2B and B2C sectors as organizations move away from fragmented solutions toward platforms delivering measurable results. Pressure to prove ROI intensifies demand for real-time, data-driven marketing that balances effectiveness with compliance, according to the CMSWire State of the CMO 2025 report.

Industry analysts assert that CDPs transformed from “nice-to-have” tools into foundations for customer-centric growth and competitive advantage in 2025.

CDPs Transform Customer Data Management but Market Challenges Remain

Customer data platforms have emerged as essential infrastructure for businesses seeking to unify fragmented customer information and deliver personalized experiences at scale.

Implementation costs remain a significant consideration for many organizations. The complexity of integrating CDPs with existing technology stacks can require substantial resource investments.

Growing competition from integrated CRM systems and comprehensive marketing suites is pushing some businesses toward alternative approaches. Some organizations are exploring hybrid strategies that combine CDP capabilities with existing platforms rather than implementing standalone solutions.

Marketing leaders identify data integration and cleaning from disparate sources as their biggest operational challenge. Without clean, connected data, AI and personalization strategies fail to deliver results, according to industry analysis. High-performing teams now invest equally in data hygiene and governance as they do in new technology acquisitions. This shift reflects growing recognition that data quality directly impacts campaign effectiveness and customer experience outcomes.

Evaluation Considerations for Customer Data Platforms

When assessing CDP options, organizations should prioritize several key factors:

  • Data integration capabilities across existing systems
  • Scalability to handle growing data volumes and user bases
  • Analytics features that align with business intelligence needs
  • Privacy controls that meet regulatory requirements
  • Compatibility with current marketing technology investments
Learning Opportunities

Related Article: CDP Evolution: Is the Hype Finally Over?

What Does a CDP Do—and Why Does It Matter?

A CDP brings together customer data from websites, mobile apps, email campaigns, point-of-sale systems and other offline channels and processes it into a single, unified database. This consolidation involves cleansing, de-duplicating, and organizing customer records that would otherwise remain siloed across different tools, departments, and teams.

Once the data is unified, CDP software applies analytics and machine learning (ML) to uncover behavioral patterns, segment audiences, and surface actionable insights. The result is a persistent, comprehensive profile of each customer—one that marketers can tap into to deliver more relevant campaigns, personalize experiences in real time, and ultimately drive stronger engagement and return on investment.

By turning fragmented data into a clear picture of customer behavior, a CDP enables businesses to make smarter decisions and build deeper, more meaningful relationships with their customers.

Customer data platforms are no longer niche marketing tools—they’ve become central to delivering connected experiences. According to the 2025 CMSWire CDP Market Guide, the market valuation for CDPs hit $2.95 billion in 2024 and is expected to reach $10.12 billion by 2029, fueled by demand for omnichannel engagement and industries such as healthcare seeking a 360-degree view of customers.

In addition, according to the CDP Institute’s 2025 Industry Update, the market for true CDPs is continuing to expand despite increased competition from repackaged legacy tools, reiterating the findings of the Simplermedia report. The update also highlighted the rise of so-called composable CDPs, which grew at an organic rate of 12.9%.

What’s the Purpose of a CDP?

CDP technology offers businesses a singular, coherent view of their customers by consolidating disparate data sources. CDPs collect data from various online and offline channels, resulting in a unified customer profile that provides marketers with deep insights into customer behavior. The result is the ability to more effectively tailor campaigns and personalization efforts.

CDP vs. CRM vs. DMP: What’s the Difference & Which Is Best?

When you enter the world of data management, three acronyms will frequently emerge: CDP (customer data platform), CRM (customer relationship management) and DMP (data management platform). What differentiates the three?

Comparing CDPs, CRMs, and DMPs

A breakdown of the primary purpose, data type, retention, and use cases for three key customer data platforms:

Platform Primary Purpose Data Type Data Retention Use Case
CDP Unified customer profiles from first-party data First-party data: personal information, transaction, interactions Long-term Personalization, customer segmentation, targeted marketing
CRM Manage interactions with customers Interactions and transaction data: sales, service, marketing Long-term Sales forecasting, contact management, customer service
DMP Activate third-party data for advertising Third-party anonymous data: cookies, IP addresses Short-term (usually 90 days) Audience targeting, ad optimization, media buying
  • Customer Data Platform: Creates a unified customer profile by aggregating data from multiple sources, ensuring real-time, actionable insights.
  • Customer Relationship Management: Focuses on managing customer interactions, capturing sales activities and logging service requests.
  • Data Management Platform: Specializes in collecting vast volumes of anonymous online data, chiefly used for targeted advertising.

So, which is best? It depends on your business goal. For a holistic view of customer behavior across multiple channels, CDPs shine. If the aim is to foster deeper customer relationships, a CRM system is your go-to. And if the primary objective is broad-scale advertising targeting, then DMPs take the lead.

Beth Pfefferle, CMO at Redpoint Global, a customer engagement strategy provider, told CMSWire, “The most important element to look for is centralized control and real-time access to customer data across all channels, and not just stitched-together profiles. An authentic CDP gathers data from every touchpoint, resolves identities to create a consistent, unified customer profile, and activates that profile across both digital and off-line systems.”

Pfefferle explained that a true CDP delivers a live, enterprise-wide profile that fuels engagement across every channel, not just a partial or delayed data set.

Related Article: CRM vs. CDP: What’s the Difference?

What Are the 3 Core Elements of a Customer Data Platform?

Martech shoppers, beware. Many companies are repackaging their legacy solutions and calling them customer data platforms. However, CDPs must have three elements to meet the true definition, according to the CDP Institute.

The three elements of a customer data platform include:

  • Marketers Take the Lead. CDPs need to be managed and controlled by marketers, with limited ongoing technical support from IT departments and external vendors.
  • Data at the Forefront. A customer data platform must be a persistent, unified database that can collect and manage customer data from multiple sources and associate it with a customer profile.
  • External Accessibility. ACDP tool needs to be accessible by external systems and deliver data to them.

Modern CDPs aren’t just storage hubs; they actively process and enrich data to drive engagement. The CMSWire CDP Market Guide highlighted that many leading platforms now emphasize AI and ML to uncover behavior patterns, recommend next-best actions and generate insights at a speed and scale previously unknown.

Related Article: How AI and Data Analytics Drive Personalization Strategies

What Are the Key Features of a CDP?

A CDP needs to offer more than just data collection—it must include a marketer-friendly, web-based interface that enables users to handle the following core functions without needing heavy IT involvement, according to Gartner:

  • Profile unification: Bring together data points at the individual level, linking key attributes to each identity. In some cases, this extends to grouping individuals into households or accounts, which is especially valuable for B2B and account-based marketing strategies.
  • Data collection: Pull in first-party customer data from a wide range of sources—both online and offline—in real time, without storage restrictions. This data, whether tied to known identities or anonymous interactions, is retained in its original form for as long as it’s needed, ensuring a comprehensive and persistent record.
  • Analytic reporting: Deliver insights across multiple layers of customer information, whether at the attribute level, within individual profiles, or across broader audience segments.
  • Activation: Push carefully built audience segments, along with instructions for how to engage them, into downstream marketing tools—such as email platforms, mobile messaging systems, or advertising networks—so those insights can drive real campaigns.

In addition, modern CDPs increasingly layer in AI and machine learning, enabling predictive modeling, automated segmentation, and real-time activation that go far beyond simple data consolidation.

Campaign vs. Delivery CDPs: Hottest Types of CDPs on the Market

This table summarizes the distinctions between Campaign CDPs and Delivery CDPs as defined in the CDP Institute’s July 2025 Industry Update.

CDP Type Key Capabilities Primary Use Cases Notable Characteristics
Campaign CDP Data assembly, analytics, customer treatments Personalized messages, outbound campaigns, real-time interactions, content/product recommendations Supports treatment-level personalization within segments; often includes orchestration across channels
Delivery CDP Data assembly, analytics, customer treatments, message delivery Email, web, mobile apps, CRM systems, advertising campaigns Typically evolved from delivery systems; added CDP functions for personalization, analytics and multi-channel execution

Why Is Customer Data Important?

Today, customer data is the lifeblood of business. It’s the key to understanding customer preferences, behaviors and buying patterns. Harnessing this data effectively translates into personalized experiences, deeper customer loyalty, increased retention rates and more. In essence, comprehensive customer data isn’t just about numbers and metrics — it’s the backbone of meaningful relationships between businesses and consumers.

The Data That Makes up a CDP

CDPs consolidate various data types, each bringing unique insights about the customer. The types of data that make up a customer data platform include:

  • First-Party Data: This is data collected directly from your audience. It includes interaction metrics from your website, app usage details, transaction histories and subscription information. Since it’s gathered straight from the source, first-party data is highly valuable and accurate. Within a CDP, it forms the foundation of your unified customer profiles, offering a clear snapshot of individual customer behaviors and preferences.
  • Second-Party Data: This data is essentially someone else’s first-party data that’s shared or purchased. For instance, a brand might collaborate with a non-competitive partner to exchange data for mutual benefit. In a CDP context, second-party data can complement and enrich the existing first-party data, broadening the understanding of customer interactions across different platforms.
  • Third-Party Data: Gathered from external platforms not directly linked to your business, third-party data typically encompasses broader datasets like market trends, demographic insights or generalized customer behaviors. While its accuracy might be lower than first-party data, its strength in a CDP lies in its ability to fill gaps, helping to segment audiences, identify new potential markets and enhance personalization strategies.

By skillfully integrating these data tiers, CDPs provide businesses with a multi-dimensional, comprehensive view of their customers, enabling data-driven decision-making.

Related Article: 4 Types of Customer Data and How to Use Them 

The Benefits of a CDP

From creating a unified customer view to enhancing personalization and ensuring easy integration, CDPs epitomize the core advantages of leveraging a sophisticated customer platform. Let’s take a deeper look at some of the benefits a CDP can bring to modern businesses. 

A Unified Customer View

CDPs shine in their ability to aggregate diverse data from multiple touchpoints, from web interactions to in-store purchases. The results in a comprehensive, 360-degree profile of each customer. With this profile in hand, businesses can delve deeper into the nuances of individual customer behaviors, ensuring more tailored interactions and enhancing the customer journey.

Enhanced Personalization

With the amount of data they handle, CDPs allow businesses to develop personalized marketing campaigns that deeply resonate with their audience. But it’s not just about what they show; it’s also about what they don’t. Customer data platforms can suppress ads or materials that may be irrelevant to a user, ensuring each interaction is meaningful and unobtrusive.

Easy Integration

CDP integration with existing marketing tools, such as CRM systems, marketing automation platforms and data warehouses, prevents siloes and ensures data moves fluidly across the business ecosystem. This interconnected setup allows businesses to react in real-time to customer actions — from clicked links to abandoned carts — and refine strategies on the go.

Accuracy, Compliance & Customer Data Protection

Centralizing data management mitigates risks of duplication and inaccuracies. But, more critically, in an age where data privacy concerns loom large, CDPs offer robust data protection features. They ensure that businesses not only stay compliant with evolving data protection regulations (like the General Data Protection Regulation, or GDPR) but also prioritize customer privacy, safeguarding sensitive information and reinforcing brand trust.

Improved Return on Investment

When businesses sharpen their marketing strategies, fueled by rich and accurate data insights, the result is more efficient ad expenditure. With CDPs, brands can pinpoint where their dollars are best spent, yielding improved returns on investment and minimizing wasteful outlays.

How to Choose a Customer Data Platform

With the increasing number of solutions available, choosing the right customer data platform requires a clear understanding of both your business needs and the features on offer. Here’s a step-by-step guide to help navigate this selection:

1. Understand Your Data Needs

Before diving into the vast sea of CDP options, delineate your primary data requirements. Are you looking to merge online and offline data? Do you need real-time analytics or predictive modeling? Pinpointing these specifics will help narrow down suitable platforms.

2. Look at Integration Capabilities

Make sure the CDP can seamlessly integrate with your existing marketing tools, CRM systems and data warehouses. A customer data platform that can’t communicate effectively with other systems and tools in your arsenal will create more challenges than solutions.

Pfefferle explained that integration issues often stem from the way older systems were built. “Integration challenges typically come from fragmented or siloed data structures. CRMs and DMPs were built for different purposes, so aligning schemas, resolving identities, and syncing data flows in real time can feel overwhelming if not impossible,” she said.

Jim Herbert, CEO of integration platform provider Patchworks, added that the promise of a CDP—a single, unified view of the customer, smarter segmentation, and more relevant campaigns—often goes unrealized when data remains siloed. “A CDP is only as effective as the data it receives,” Herbert explained. “If ecommerce platforms, CRMs, marketing tools, and loyalty systems aren’t properly connected, the picture remains incomplete. Customer journeys become disjointed.”

3. Compare Data Privacy & Compliance Features

With data protection regulations becoming stringent worldwide, select a CDP that prioritizes compliance. Data management platforms that ensure compliance with GDPR, CCPA (California Consumer Privacy Act) or other regional data protection regulations will protect your business from potential legal pitfalls.

“A well and properly designed CDP bakes compliance right into the foundation. With full transparency into consent status and preference data, a true CDP can enforce those choices across every interaction point in real-time,” said Pfefferle, who emphasized that when compliance is built into a CDP, marketers can deliver meaningful personalization while respecting evolving privacy standards.

4. Evaluate AI-Driven Features

Today’s leading CDPs go beyond storing and segmenting data—they apply AI and machine learning to uncover patterns, predict customer behavior, and recommend next-best actions in real time. Look for platforms that offer predictive analytics, automated segmentation, and AI-powered activation tools.

5. Consider Scalability

Your business will grow, and so will your data needs. Opt for a customer data platform that can scale with you, accommodating more data integration and more complex analytics as your requirements evolve.

6. Prioritize a User-Friendly Interface

A CDP, no matter how powerful, is only as good as its usability. Ensure that the platform you choose has an intuitive interface, offering ease of use for those who aren’t necessarily tech-savvy.

7. Think About Support & Training

Implementation of a customer data platform is a significant step, and having the provider’s support during this transition is invaluable. Prioritize platforms that offer robust training and support at the onset, ensuring smooth onboarding and assistance when needed.

8. Determine Cost vs. Value

While budget considerations are undeniable, it’s essential to weigh the cost of a CDP against the value it provides. A less expensive option might lack critical features, while a pricier one might offer tools that you don’t really need.

Pfefferle said that when a CDP is working as intended, you see it in both top-line and bottom-line results. “The clearest signal for success is agility (i.e. when marketers can launch complex cross-channel programs without waiting on IT or third-party vendors). Self-service agility, powered by trusted unified data, is the true litmus test of CDP success. It means teams are empowered, customers feel seen, and the business grows smarter with every interaction.”

Vendors Featured in the 2025 CMSWire CDP Market Guide

Examining key capabilities of some of the players in the customer data platform space.

Vendor Key Capabilities
Acquia Unified customer profiles, marketing automation, open DXP integration
ActionIQ Enterprise CDP, identity resolution, audience management
Adobe Real-time CDP, AI-driven personalization, experience cloud integration
Amperity Identity stitching, data unification, analytics for retail/consumer
Antisomi Consent-first marketing, CDP for privacy-focused campaigns
Bloomreach CDP plus search and merchandising for commerce
BlueConic Profile unification, lifecycle marketing, consent management
Blueshift AI recommendations, cross-channel activation, segmentation
FirstHive Self-learning CDP, edge identity graphs, marketing automation
Fospha Marketing Attribution-focused CDP, ecommerce analytics
Hightouch Reverse ETL, composable CDP, warehouse-native architecture
Informatica Enterprise data management, CDP integration via Salesforce
Leadspace B2B CDP, account-based marketing, data enrichment
Lytics Behavioral scoring, personalization, cloud-native CDP
mParticle Data pipelines, consent management, event tracking
n3 Hub Healthcare and pharma-focused CDP with secure data handling
Ometria Retail-focused CDP, AI customer intelligence
Onecount Publisher-focused CDP, real-time targeting
Opentext Data orchestration and CDP within enterprise information management
Oracle Fusion CX, real-time personalization, enterprise CDP
PwC CDP consulting and implementation services, not a standalone platform
Qualtrics Experience ID and XM Directory with CDP-like functionality
Rudderstack Warehouse-first, developer-friendly composable CDP
Salesforce Unified customer profiles, journey orchestration, Einstein AI
SAP Customer data cloud, consent management, CX suite integration
SAS Advanced analytics, real-time decisioning, identity resolution
Sitecore Content and commerce CDP integration, personalization
Spotler SMB marketing automation, email and CRM integrations
Tealium Tag management, customer data hub, consent management
Teavaro Identity solutions and privacy-centric CDP
Treasure Data Enterprise CDP, IoT and offline data integration
Twilio Segment CDP, data pipelines, real-time event streaming
Velocidi Customer journey analytics and data unification for ecommerce
Zeotap Consent-based identity resolution, telco-originated data
Zeta Global Marketing cloud with built-in CDP, predictive analytics

How Other Companies Use CDPs

Industry leaders often adopt customer data platforms as part of their strategies to optimize customer engagement. Let’s take a look at how some companies are using these data systems:

  • Starbucks: The coffee giant uses its CDP to offer personalized experiences to millions of its app users. By analyzing behavioral data like website clicks, purchase histories and preferences, Starbucks can deliver tailored product recommendations, enhancing its mobile order-and-pay features. This level of customization fosters loyalty and drives repeat purchases.
  • Ben & Jerry’s: The ice cream brand taps into the power of a customer data platform to segment its audience for marketing campaigns. They differentiate between casual buyers and “super fans,” tailoring their messaging and offers accordingly. This segmentation leads to more engaging campaigns and deeper brand connections.
  • Macy’s: The department store chain harnesses its CDP to understand and predict consumer shopping behaviors. By consolidating customer data from both online and offline sources, Macy’s crafts highly personalized email campaigns that increase click-through rates and conversions.
  • Airbnb: With millions of listings and users, Airbnb relies on its CDP to collect customer data and maintain consistency in user experience. The platform tracks user interactions, preferences and feedback to develop a single unified customer profile and continually refine and personalize offerings.
  • Sephora: The beauty retailer uses its customer data platform to merge online and offline shopping experiences. By analyzing online browsing behaviors, Sephora provides in-store staff with insights that allow them to offer personalized product recommendations when a customer visits a physical store.
Exterior view of a Sephora store with its black sign displayed on a busy city street.
Sephora exemplifies how brands merge online and offline data with customer data platforms (CDPs), empowering store associates to offer personalized recommendations based on shoppers’ browsing and purchase history.daily_creativity | Adobe Stock

Beyond retail, companies across a variety of industries are taking advantage of CDPs to power smarter engagement. Heineken brings together loyalty, event, and social data to deliver targeted promotions—such as timely offers to soccer fans during major tournaments.

L’Oréal integrated a Salesforce-powered CDP to unify real-time customer data across its brands, enabling smarter segmentation and personalized campaigns. This approach has driven measurable gains, including a 13.5% rise in purchases per user, a 30% revenue lift in 95 days, and significant improvements in conversion and click-through rates.

CDP Impact Across Marketing, Sales and Service

The most immediate impact of a CDP is often seen in marketing performance. The 2025 CMSWire CDP report explained that CDPs enable real-time, contextual campaigns, allowing marketing teams to automate repetitive tasks like campaign activation and lead scoring—freeing time and budget for higher-impact initiatives.

Beyond marketing, CDPs also empower sales teams. By segmenting accounts and tracking activity across the business, sales teams can better identify cross-sell and up-sell opportunities, as well as tailor account-based messaging. Service teams gain just as much from a unified data view. The guide pointed out that CDP analytics can provide early indicators of churn, helping support teams proactively offer solutions that retain customers.

These examples and market findings illustrate that a well-implemented CDP delivers far more than marketing wins. From AI-driven analytics to consent-aware data governance, modern platforms are evolving into enterprise-wide engines that connect sales, service, and marketing teams. As the CDP market accelerates toward a projected $10 billion valuation, the ability to unify and activate customer data is no longer optional—it’s becoming a core competitive advantage.

Strategic Implications for Customer Data Platforms in 2025

Success in the CDP landscape requires treating data pipelines as mission-critical infrastructure while developing core marketing technology competencies. The emphasis has shifted from simply collecting data to generating actionable insights, delivering real-time personalized experiences and demonstrating measurable business impact.

As one industry observer noted, “In the world of CDPs, garbage in still means garbage out—so keep your data clean and your strategy even cleaner.”

Editor’s Note: This article was updated on Aug. 25, 2025. It was originally authored by Brian Carlson and was last updated Feb. 13, 2024.



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