CDPs Meet Data Minimisation: A New Era for Customer Data Platforms

The trend of Customer Data Platforms (CDPs) meeting data minimisation is happening now due to the increasing importance of data privacy and security. With regulations like GDPR and CCPA, companies are being forced to rethink their data collection and storage practices. CDPs, which were initially designed to collect and store large amounts of customer data, are now being adapted to prioritise data minimisation. This shift is different from past cycles, where the focus was on collecting as much data as possible, as companies are now realising that less can be more when it comes to customer data. Early adopters, such as Salesforce and Adobe, are already incorporating data minimisation into their CDPs, while laggards are still trying to catch up. To adopt this trend, companies can follow a three-step framework: first, assess their current data collection and storage practices; second, identify areas where data minimisation can be applied; and third, implement data minimisation techniques, such as data clean rooms and identity resolution. However, there are situations where it’s okay to ignore this trend, such as when the cost of implementing data minimisation outweighs the benefits, or when the company is not handling sensitive customer data. For more martech analysis, tools coverage and strategy guides, visit MartechXpert — your independent source for marketing technology insight. Companies like AgilOne and Ascent360 are also working on data minimisation, and it’s essential to stay informed about the latest developments in this area. It’s crucial to note that data minimisation is not a one-size-fits-all solution, and companies need to find the right balance between collecting enough data to provide a good customer experience and protecting customer privacy.

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