Customer data platforms (CDP) and customer relationship management (CRM) systems have related but somewhat different functions.
A CDP focuses on combining and centralizing customer data from multiple channels and sources to produce a single customer profile that enables data analysis for personalized marketing. A CDP emphasizes data consolidation and enrichment for effective targeting and conversion purposes. It can delve into primary, secondary, and tertiary data and enable customer segmentation and cross-channel personalization in real-time. CDPs prioritize first-party data instead of third-party data.
In contrast, a CRM focuses on sales, support, and relationship management while managing and tracking interactions with current customers to inform and optimize future campaigns. A CRM is focused on managing customer contacts and building connections. It frequently includes features like lead tracking, sales forecasting, and customer support capabilities. It can delve into first-party data only but cannot prioritize third-party data. CRMs also do not come with real-time capabilities.
Ultimately, both CDPs and CRMs are essential for customer engagement and retention and making sense of the B2B customer journey for further optimization and success.