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[Music].hi there i'm calvin french owen.co-founder and CTO of segment i spent.the last ten years thinking mostly about.customer data and today i wanted to talk.to you about a category that's been.getting a lot of attention recently in.the market customer data platforms or.CDP's now the unfortunate fact of the.matter is that today's customer.experience is really more fragmented.than ever you're talking to customers on.twitter your homepage via email they're.using your mobile apps reading your.marketing content and browsing online.sites they're interacting with your.support team via your help desk and via.live chat so you need to do something to.coordinate all those experiences but how.do you do it we're still sending the.wrong email or having an untrained.support rep doesn't just mean a bad.experience it means lost customers at.segments we're fortunate to have helped.thousands of customers build their.customer data platforms and bring.reliable data to every team we've combed.through over five hundred billion data.points to help you make sense of the.customer data platform landscape by the.end of this video.our goals are me with the knowledge you.need to constantly navigate everything.CDP let's dive in first up what is a CDP.now there's a lot of misconception out.there about what a CDP is so let's just.set the record straight.a customer data platform is a tool that.helps you bring reliable data to every.team that means it helps you with data.collection taking customer data from a.number of different tools data.governance validating and transforming.that data so it's clean and accurate.data processing and consolidation.combining that data to create unified.profiles of your customers in data.activation deploying those profiles to.other tools to improve your customers.experience conclude that has four parts.you want to connect your data from.different sources whether that's your.website your mobile apps or internal.tools you're using like help desks you.need to bring that data all into one.consistent place where you govern it you.make sure it follows your protocols and.PII rules and then finally you.synthesize that data combine it into a.single view of the customer and you take.action on it you push it into your CRM.for your salespeople maybe email tools.for your marketing advertising or other.tools you might be using the power of.different parts of your business.CDP's combine all of these different.parts to make sure that you provide a.consistent customer journey across every.touchpoint now when we look at the CDP.industry itself it's growing crazy fast.the number of vendors grew by 48 percent.in the last 12 months alone on the buyer.side we're seeing interest grow equally.fast searches and customer data platform.are increasing at a pretty steep rate so.I know.well data collection is becoming a lot.more fractured than ever before.the average SAS company out there today.uses 80 plus tools so businesses are.having to invest more and more resources.to keep their tools and their customer.data in sync that bad data costs your.business real dollars IBM estimates that.bad data costs the u.s. 3 trillion.dollars every single year so how is the.CDP actually used well a CDP can improve.the decisions you make your speed and.delivery and ultimately your customer.experience let's look at a few real live.examples the first one I have for you is.IBM IBM connects many different sources.of data from internal tools they have.like their website to their different.internal platforms whether it's their.cloud platform like bluemix Watson or.even compose i/o now iBM has all of.these different business units with.different users but at the end of the.day they want to provide a consistent.customer experience.and in their case segment is the tool.that allows them to do that it doesn't.matter where they look at the data with.segments they get that single consistent.view of the customer another good.example is bonobos bonobos is an online.e-commerce company that sells clothing.for bonobos they have a lot of different.touch points they have their offline.retail stores their online shopping as.well as mobile apps and for them it's.incredibly important to understand how.customers navigate through those.different channels segments is what.allows them to do that it ties together.that offline behavior from Facebook and.from other different sources that they.have with that online behavior that they.have on their site now see DPS have.gained a lot of traction in the market.but there's so plenty of misconceptions.out there about their true potential.let's walk through those now.misconception number one they're only.for marketing wrong 26 percent of.customers connect customer to success.tools another 15 percent connect their.CRM and whopping thirty one percent.connected data warehouse for custom.analytics purposes clearly we're going.on just the plain old marketing and ad.spend use case here misconception number.two they're only for big companies with.big text acts wrong again see DPS are.being adopted by companies both big and.small enterprise companies tend to be.sending about 20 percent more.destinations than SMB and mid-market.companies but universally we're seeing.adoption as companies are seeking to.unify that customer journey no matter.how big or small you are misconception.number three see DPS are just another.hyped technology and it's not really any.different than its predecessors wrong.again.Gartner recently placed CDP's in the.peak of inflated expectations what that.means is that CDP buyers are expecting.this technology to do more than it's.actually capable of what we've seen over.the past twelve months is that customer.data platforms are delivering real value.segment alone is processing 500 billion.events through its customer data.platform every single month and it's.growing in 2019 the overall volume of.events that customers have tracked.through segments EDP increased by 60% in.closing I'd like to share a few of our.predictions for how the CDP market will.unfold prediction number one 2020 will.be the year CDP enters the mainstream.with a dramatic increase in RFPs and.customer adoption of CDP's over 2019.David Raab the founder of the customer.data platform Institute has predicted.that customer data platforms will be a.career line item and technology budgets.we think this year is the breakout year.for CDP's to really come online and come.into their own prediction number 2.customer data platforms will have to.balance privacy and personalization many.of the folks we interview for this.article highlighted privacy as a key.area of focus for the year ahead and.specifically they called out what we.call the privacy personalization of.paradox how to balance the desire for.data-driven personalization with their.customers desire for better data privacy.at first glance it might appear that a.CDP designed to track customer data.could actually contribute to data's.privacy problems but in reality it's.quickly becoming an independent art of.the solution it's on vendors to educate.the market accordingly prediction number.three seed EPS will move from adoption.to automation in 2019 we saw.consolidation around the core.competencies of a customer data platform.2020 we'll likely see new competencies.added one area we expect to see.innovation our purpose-built workflows.created on top of CDP's on top of the.integrations that just share data both.ways it's possible that CVPs could add.additional API endpoints to perform.these actions themselves.and moving from intelligence to action.CDP's would move further up the value.chain so we covered a lot here in these.past few minutes we covered what is a.CDP how is the CDP market changing and.how should I be thinking about CVPs.going forward now obviously all this is.just scratching the surface we put.together a full 5,000 word report.sharing our internal data that you can.find in the description below if you're.looking for an even deeper dive.download the free downloadable CDP.report also in the description below.let's make 2020 the year of magic.customer experiences thanks.

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