CDP is now a must-have in 2025’s MoSCoW

I’m sure you’ve heard about the MoSCoW method from strategy gatherings — Must-have, Should-have, Could-have and Won’t-have. It’s a simple but powerful way to prioritize what really matters, particularly when resources are tight and the stakes are high. In 2025, I firmly believe customer data platforms (CDPs) have moved squarely into the “Must-have” category for any organization that wants to unlock the full potential of AI/ML and GenAI. Let me explain why. 

Customer data chaos is the elephant in the room

Let’s be honest & concede, customer data is the elephant in the room for most organizations. It’s scattered everywhere, from CRM and ERP to marketing automation, ecommerce, and other martech tools. I’ve lost count of how many times I’ve tried to get a 360-degree view of a customer, only to feel like I was flying blind. If you’ve ever felt the same, you’re not alone. Customers expect us to know them, to treat them as more than just a number and to anticipate their needs. The reality is, most of us are still struggling to connect the dots.

So, what’s the North Star for companies trying to navigate this new world? For me, it’s the genAI-powered CDP. Over the last six months, I’ve seen a 20% uptick in queries, proof-of-concept projects and MVP solutions focused on genAI-centric customer 360-degree views. The message is clear that CDPs are no longer a “nice-to-have but they’re a must-have. 

Why CDPs matter: Unification, activation and intelligence 

Let’s dig into what makes a CDP so powerful. First and foremost, it unifies all your customer data from online, offline systems and everything in between into a single, persistent profile. No more data silos, no more guessing games. You get a cradle-to-grave view of every customer’s journey. I’ve seen firsthand how this kind of unification can transform not just marketing, but sales, service and even product development. 

But unification is just the beginning. The real magic happens when you start activating that data. With a CDP, you can segment audiences, personalize messages and orchestrate journeys across every channel. I recall working with a retail client that utilized their CDP to deliver personalized offers in real-time, both online and in-store. The result? A 30% increase in NPS score and a noticeable boost in customer satisfaction. 

And then there’s intelligence. With AI/ML and genAI baked in, your CDP becomes more than just a data platform. Predictive analytics, dynamic segmentation and even automated content generation can leverage GenAI to write custom emails or product descriptions, just imagine the art of the possible. According to a recent McKinsey Quarterly report, companies that leverage advanced analytics and AI see up to 25% faster revenue growth than their peers. 

The AI/ML and genAI revolution in CDPs 

Here’s where things get really interesting: The convergence of CDPs with AI/ML and genAI is changing the game for customer engagement. If you’re not experimenting, you’re missing out. I’ve learned the hard way that sometimes you are better off to fail fast, motivating you to test, learn and pivot quickly to find what works. 

• AI/ML for enhanced personalization. Machine learning can spot patterns and predict what your customers will do next. That means tailored recommendations, targeted offers and content that resonates. I’ve seen companies use AI-driven insights to optimize everything from email subject lines to product recommendations, resulting in double-digit lifts in engagement. The optics of real-time personalization are powerful, as customers notice when you’re truly in sync. 
• GenAI for automated content creation. Imagine a CDP that not only finds your audience but also crafts the perfect message for each person. That’s GenAI in action. I am currently working with teams who use GenAI to generate hundreds of personalized product descriptions and custom emails in minutes, freeing up creative teams to focus on strategy and innovation. As MIT Sloan Management Review points out, the key is to blend human creativity with machine efficiency. 

2025 imperative: Why CDPs aren’t optional 

Let’s talk about the carrot and the stick. Customers expect personalized experiences everywhere. If you don’t deliver, they’ll find someone who will. Meanwhile, the slow death of the third-party cookie means you can’t rely on old tracking tricks. First-party data is your lifeline and a CDP is how you chart the course for the future. 

Add in the known-knowns, such as rising privacy regulation, and the known unknowns (what new rules or tech will pop up next?), and it’s clear that without a CDP, you’re at a disadvantage. GDPR, CCPA and whatever comes next are all easier to manage with a CDP’s built-in consent and privacy tools. If you’re still hesitating, it’s time to nip it in the bud. The longer you wait, the harder it gets to catch up. CDO Magazine has highlighted how leading organizations are using CDPs to stay ahead of compliance and customer expectations. 

How to start: A practical glide path 

So, how do you get started? Here’s a glide path I’ve seen work in the real world: 

1. Define clear business objectives. What’s your North Star? Is it more retention, higher conversion or better lifetime value? Please be crisp & specific with your OKRs! I once worked with a financial services firm that set a clear goal to reduce customer churn by 15% in 12 months. That focus made all the difference. 
2. Assess your data landscape. Know what data you have, where it lives and what shape it is in. Be ready for surprises such as data quality issues, integration headaches and more. I’ve found that a thorough data audit upfront saves a lot of pain down the road. 
3. Choose the right CDP vendor and implementation partner. There are plenty of options out there, so look for a partner that fits your needs, tech stack and budget. Don’t be afraid to pivot if your first choice doesn’t deliver. I’ve seen organizations switch vendors & partners midstream, while coming out stronger for it. 
4. Prioritize data privacy and security. This is a professional hazard for every CIO and CISO. Make sure your CDP helps you stay compliant and secure. The International Association of Privacy Professionals offers some great resources on what to look for. 
5. Embrace iterative implementation. Start small, learn and expand. Remember that progress, not perfection, is the key. A pilot project is better than endless planning. I’ve seen teams launch a simple use case, like personalized email campaigns and then build on that success. 
6. Invest in training and expertise. Get your team involved early. When everyone has skin in the game, adoption and success follow. I’ve found that cross-functional teams across finance, sales/marketing, IT, legal/compliance and infosec drive the best results. 

The business impact: CDP by the numbers

Let’s talk ROI. Companies using CDPs have seen up to 25% better customer retention, 15–30% higher conversion rates and 40% faster campaign setup. Revenue growth? I’ve seen 10–15% lifts from smarter targeting. These aren’t just vanity metrics but proof that the art of the possible is real. At least 15% of our new engagements and initiatives are around genAI-enabled customer 360 view and data platforms. 

For instance, consider Accor, one of the world’s largest hospitality brands, operating thousands of hotels and resorts globally. Accor faced the daunting challenge of unifying guest data scattered across loyalty programs, booking systems and digital marketing channels. Instead of sticking with a traditional, one-size-fits-all CDP, Accor took a composable approach, integrating best-in-class tools for data ingestion, identity resolution and activation. This allowed them to create a single, unified view of more than 250 million customer profiles.

The impact was immediate as Accor’s marketing teams could personalize offers and communications at scale, leading to higher guest engagement and a boost in direct bookings. Their experience shows how a thoughtful, composable CDP strategy can empower even the most complex organizations to deliver real business value. For more details, see Why Accor abandoned the conventional CDP and what they built instead.

The time to act is now!

The bottom line is that genAI-powered CDP is no longer a futuristic concept. It’s the foundation for thriving in a customer-centric, AI-powered world. If you want to avoid being left behind, now’s the time to act. Don’t let the elephant in the room, the fragmented customer data, hold you back. Chart your glidepath, keep your North Star in sight and remember that there are always multiple ways to skin the cat. Choose the path that works for your business and you’ll unlock the true power of AI/ML and genAI.

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