In this article, we'd like to mark some fundamental differences that make CDP ( Customer Data Platform) a unique and versatile option for a variety of businesses in comparison to existing technology solutions.

Main differences between Customer Data Platform and tools like CRM, DMP (Data Management Platform), or Delivery systems

1. CDP vs CRM

CRMs are built to engage with customers based on historical and general customer data to create a holistic customer profile. They aren't designed to accommodate immense volumes of data from other systems and sources.

CDP is able to connect with all types and sources of customer data, including internal or external, structured or unstructured, and on or off premise storage.

Modern CP will allow you to better understand your customers and act on that knowledge even in real time.

2. CRM & Offline data sources

Average CRM has a profile with personal data from phones, emails, permissions, web forms, and surveys.

CDP is instead built to handle any type and category of data. The ability to add and change new types of sources makes it more stable and functional.

3. CDP vs Delivery platform

Delivery platforms include email marketing or marketing automation software, social media management platform, and apps.

These delivery systems not only interact with CDP to send out messages, but also collect engagement and campaign data to feed back into it. They do not belong to the type of CDP, though some CDPs have tight integrations with the delivery platforms and make it possible to plan campaigns and even send out messages directly.

4. CDP vs DMP

DMPs were created to help with advertisements and enable retargeting using cookies. They are grounded more in anonymous categories than single customers. In a DMP, most of the data typically expires sometime after.

The CDP creates a persistent customer profile. Storing the data and keeping the history of any operations one of its core functions. Afterwards, by combining it with all the data about your customers, clients can obtain a full 360° view for every item (purchase, customer, order) on demand.

DMPs were designed to target anonymous users for advertising. Instead, CDPs create a database of your identified customers to use for more than only advertising. They can also improve analytics, planning, and strategic decision-making.

5. CDP vs Data Warehouses

Traditional data warehouses are built and run by IT teams with large technology facilities and an almost invisible role in marketing. The data warehouse aims to bring data together, but the marketing professionals have to rely heavily on the IT department to meet their needs.

The reality is that most valuable customer data must be accessible and relevant in order to be useful, preferably with impeccable UI/UX parameters.

CDP is most effective when it's supported by professional developers on an enterprise level that maximizes functionality.