Many marketers are familiar with Customer Relationship Management (CRM) platforms and Data Management Platforms (DMP), but lately, a new term, Customer Data Platform (CDPs) are gaining traction in the market.
According to Gartner, CMOs around the world invests two-thirds of their budget in supporting customer retention and growth. As customers are interacting with brands over phones, tablets, desktops, smart TVs and through other channels, marketers are portraying an acute need for a platform that provides them with a unified view of their customers’ data and activity. That’s how CDPs started gaining traction.
A CDP is a marketing system that unifies a company’s customer data from marketing and other channels.
According to experts, CDP is designed specifically as a central location for — customer profiles, customer identifier, web and mobile session details, app interaction details, email responses, lifecycle stage update and so forth. All this data is organized and structured in a manner so that it could be easily managed by a marketer with zero fuss.
CDPs are meant for marketers
How are CDPs different from CRMs and DMPs?
CDPs are made for marketers and these platforms allow them to have a holistic view of every single customer. With the help of a CDP, a marketer could easily access all sorts of data(browsing history, previous purchases, lifecycle stage, email, contact number and more). When we break down a CDP, these are most important takeaways:
Now one can argue that a CDP seems similar to CRMs and DMPs — they all collect and store customer data in one platform. But there are glaring differences in how the data is collected and processed. The next section addresses what makes them different from CRMs and DMPs.
Speaking of data, what are the types of data that can be accumulated in a CDP and how does it differ from CRMs and DMPs?
While these are the most important set of data a CDP keeps a track of, it is not limited to just these. For instance, CDPs could be set to track all other sorts of data like email responses, social media mentions and more.
Therefore, it becomes a very useful tool in your business and at times it’s not just useful for marketers, but also for customer support or account managers, as they can closely watch and monitor customer accounts, and resolve any queries that might persist.
There are several ways CDPs differ from CRMs and DMPs, here are the major ones:
Although there are many similarities as well between CRMs, DMPs, and CDPs, and in certain ways, they complement each other, if you are in the market looking for third-party solutions for a short-term basis, CRMs and DMPs in combination will work out well. But, if you are out there for a long run in the market, and want to have long-term relations with your customers by collating all data at one place, CDPs are your best bet.
As the Digital Growth Director for Insider Spain, Pablo is responsible for building the new strategic partnerships and growing the current partnerships in the region. Before joining Insider, he was a Channel Account Manager for HubSpot, where he gained expertise in Email Marketing, Inbound Marketing, and CRM, building and growing the partner network of Spain & Portugal. He started his journey into the SaaS world at Oracle as a member of their business development team.