Editorial
The Gist
- Data deluge. Global data is expected to hit 181 zettabytes by 2025, creating opportunities and risks for CX leaders.
- Beyond CRM. Customer Data Platforms (CDPs) bridge the data-insight gap, enabling personalization, proactivity, and smarter self-service.
- Action over overload. Businesses that unify data intelligently can elevate customer journeys instead of drowning in fragmented information.
The global volume of data is projected to rise to 181 zettabytes by the end of 2025 – but will this be a friend or foe to CX? Data and information sits at the heart of decision making and crucially unlocks personalization, which brands use to improve CX and deliver bespoke marketing. However, with so much data flowing into businesses they must take action to manage it and act on insights, rather than becoming overwhelmed by the torrent of information.
In today’s connected age, almost everything emits data. From smartphones to connected cars, smart home systems to wearable tech, consumers are creating an ever increasing data footprint. The proliferation of Internet of Things (IoT) devices will mean that sources of data continue to rise with the number of connected IoT devices estimated to grow to 40 billion by 2030. IoT devices don’t stop at consumer tech, either.
Industrial IoT is a growing market and data from sensors, such as those that collect weather information, are vital to many sectors; but how does all this impact the customer journey and CX?
Table of Contents
- From Data Flood to CX Fuel: Why CDPs Are the Lifeline for Customer Journeys
- Bridging the Data-Insight Gap
- Preparing for the Data Deluge
- Our Take: CDP Becomes Essential Infrastructure for Data-Heavy Businesses
- The Data Deluge Challenge
- Breaking Down Organizational Silos
- Implementation Requirements
- Three Big Takeaways from the CMSWire 2025 CDP Market Guide
- FAQ: How Can You Navigate the Data Deluge as Marketing and CX Leaders?
From Data Flood to CX Fuel: Why CDPs Are the Lifeline for Customer Journeys
Customer Data Platforms (CDPs) are emerging as the critical tool for transforming raw data into personalized journeys, proactive communication and intelligent self-service. To see how CDPs stack up against traditional systems like CRMs and what they offer CX leaders, compare the tables below.
CRM vs. CDP
How traditional CRMs compare with CDPs in powering customer journeys.
| Feature | CRM | CDP |
|---|---|---|
| Data Sources | Primarily internal records | Multiple sources, including IoT and real-time data |
| Personalization | Limited to past transactions | Dynamic, contextual, and predictive |
| Proactivity | Reactive (after issue arises) | Proactive outreach and trend analysis |
| Self-Service | Minimal integration | AI-driven, customer-empowered experiences |
| Scalability | Challenged by data growth | Built for big data and evolving CX |
Related Article: What Is a Customer Data Platform (CDP)? 2025 Guide for Marketers
Bridging the Data-Insight Gap
Data is held on every customer that a business has, traditionally on a Customer Relationship Management (CRM) platform. Typically, a business can see basic information on a customer and track their purchase history and responses to marketing outreach campaigns.
However, traditional CRM systems, which depend on all the information being stored in one central repository, are struggling to keep pace with modern demands. Customer Data Platforms go beyond the traditional CRM and unlock additional insights by bringing together the right data from a wide variety of sources at the right moment, to provide elevated experiences including:
1. Personalization
Acting on real-world fresh data has a greater impact than relying on outdated stereotypes or imposing a one-size-fits-all approach. Customers want personalization within CX, with 81% of customers preferring companies that offer a personalized experience, and over two-thirds saying an employee knowing who they are and their history with the company is important.
Personalization with a CDP can go far beyond seeing interaction history. It can act intelligently and proactively to best manage interactions. For example, intelligent routing can ensure the customer speaks with the right agent based on a number of factors including recorded knowledge on the product or service they have, how many interactions they have had, and even down to language the customers speaks; important for multi-national businesses or those that operate in cities with diverse populations.
2. Proactive Communication
Rather than just recording data, a CDP acts on it. Proactivity allows brands to take effective actions to resolve issues before a customer has to reach out for support. It can begin to analyze trends, make predictions and deliver proactive CX.
For instance, an insurer might reach out to a customer if a sensor is triggered in a smart vehicle, indicating the driver may have been involved in a collision. Such immediate proactive communication means the insurer can get on the front foot and support the customer in their time of need, as well as ensuring the correct information is recorded at the scene of the incident by the policy holder to support future claims.
As a result, customers don’t have to reach out as they know the provider has things in hand, and situations where third parties take control of an incident are avoided.
3. Intelligent Self-Service
The ability of customers to bypass the traditional contact center altogether is attractive to both customer and business. For customers, carrying out a straightforward task such as updating account information or making a change to their service package is much less time consuming if they can do it without having to speak to an agent. Equally, when customers can self-serve for basic enquiries, agents can spend more time focusing on complex, important or emotive matters. AI-driven chatbots that have access to a CDP possess a wealth of knowledge on customers and can service those customers across a range of issues.
One example of how AI agents that are connected to a CDP can be highly impactful is to be seen in the travel industry. If a customer has a query on their baggage allowance or check-in time the AI agent can access the relevant information from the booking. Additionally, customers could purchase an upgrade on their ticket or add additional luggage. The CDP would then be automatically updated, with no human intervention required. The 24/7 nature of AI chatbots means customers can be served on their terms and many will embrace the seamless ability of more effective self-service.
Top CDP Benefits for CX Leaders
Key advantages of deploying a CDP across customer journeys.
| Benefit | Impact on CX |
|---|---|
| Personalization | Delivers tailored, relevant interactions in real time |
| Proactive Communication | Resolves issues before customers need to reach out |
| Intelligent Self-Service | Reduces effort for customers and frees up agents |
| Unified View | Combines siloed data into a single customer profile |
| Scalable Insights | Enables growth without drowning in fragmented data |
Preparing for the Data Deluge
Businesses must prepare for the influx of data they are going to receive. Data-driven insights have long been heralded as key to business success but failing to connect the dots and see a unified picture can harm not just CX but impact how the whole business understands its customers.
Implementing an intelligent data layer through a CDP will allow data insights to be collected, stored, and brought together at the optimum moment - allowing business to swim, not sink in the rapidly growing sea of data.
Our Take: CDP Becomes Essential Infrastructure for Data-Heavy Businesses
Editor's note: The following is what we're seeing at CMSWire with modern CDPs in 2025.
Organizations face mounting pressure to transform growing data volumes from potential liability into competitive advantage, with customer data platforms emerging as critical infrastructure for unified customer intelligence.
The Data Deluge Challenge
Businesses today collect information across multiple touchpoints, but fragmented data systems create silos that prevent organizations from developing coherent customer understanding. Without unified approaches, the expanding volume of customer information can quickly shift from asset to operational burden.
Customer data platforms address this challenge by functioning as an intelligent data layer that aggregates, cleanses and organizes customer information from disparate sources into single, actionable customer profiles.
Breaking Down Organizational Silos
CDPs enable organizations to connect insights across departments, ensuring information reaches decision-makers when needed to enhance customer experience and inform business strategy. The platforms collect and store data while also activating it, making insights accessible across marketing, sales and service functions.
According to industry analysis, this unified approach helps businesses avoid fragmented data pitfalls, leading to more relevant customer interactions and improved return on investment. Real-time personalization and campaign optimization become possible when data silos are eliminated.
Implementation Requirements
The effectiveness of CDP deployment depends on data quality and system integration. Clean, connected and accessible data forms the foundation for realizing platform benefits, with integration capabilities and data hygiene practices proving critical to success.
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Industry experts suggest CDPs have evolved from optional technology to essential infrastructure for organizations operating in data-driven environments, as the volume of customer information continues expanding across digital touchpoints.
Three Big Takeaways from the CMSWire 2025 CDP Market Guide
Read the full analysis in the Simpler Media Group store.
1) CDPs Deliver Four Core Functions—and Value Beyond Marketing
The guide reiterates the foundational CDP capabilities—data capture, data management, analytics and activation—and underscores that the biggest gains come when unified profiles and insights are shared across the enterprise (marketing, sales, service and IT), not just in campaign teams.
2) The Market Is Steady, AI-Forward and Growing Toward $10B+
Despite leaner funding conditions, vendors continue to emphasize AI/ML for segmentation, prediction and real-time personalization. The outlook points to ongoing expansion, with the market projected to surpass $10.12B by 2029, driven by omnichannel demands and data integrity priorities.
3) Fit Matters: Match Use Cases, Size and Stack Strategy
No single CDP fits every organization. The report advises mapping needs to vendor types (campaign, delivery, analytics/data), industry focus (B2B vs. B2C, regulated sectors), and stack approach (suite vs. composable). Identity resolution, governance/consent and integrations with your data warehouse and activation tools remain critical selection criteria.
FAQ: How Can You Navigate the Data Deluge as Marketing and CX Leaders?
Editor's note: Quick answers for CX and marketing leaders navigating the data deluge.
A CDP integrates multiple data sources to deliver contextual, predictive personalization—moving beyond transaction history to proactive, relevant interactions.
Businesses risk drowning in fragmented data, leading to poor insights, reactive service and customer churn, while competitors move ahead with unified CX strategies.
CRMs depend on centralized, often static data, which can’t handle the speed, variety and scale of modern data streams. CDPs unify data in real time.
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