A customer data platform (CDP) and Customer Relationship Management (CRM) are both ways of managing customer information. While they offer similar benefits, they also have some key differences. Have a look below to know which is better when comparing CDP vs CRM:
The Importance of CDP and CRM
If you’re a business owner, you know how important it is to have a good customer relationship management (CRM) tool and a marketing automation platform. These tools help your business keep track of customers and their needs while also helping them stay in touch with you. But which one is better?
CDPs are a bit more limited than CRMs because they focus on marketing rather than sales, but they can still be useful for improving your customer relationships. A CDP can be used as part of an incoming pipeline funnel that helps bring people through the process of becoming leads and then customers. This is especially true if it includes features like tagging or segmentation so those leads are easier to manage later on down the road when they’re ready for more direct communication from your company.
When to Use a CDP?
CDPs are a great way to get customer data into your system. They’reThey’re also useful for improving the customer experience and identifying new customer segments, needs, and products.
If you’re looking to build an accurate picture of who buys from you—and how often they buy—a CDP is a surefire way to do it. The data helps marketers understand who their customers are and what motivates them to buy products or services in the first place. It also gives businesses insight into what they like about their product/service offerings so that they can continue making adjustments as needed.
Adobe Real-Time CDP says, “If you need a holistic view of your target customers and audience segments, you’ll need a CDP.”
When to Use a CRM?
CRM is a better choice for companies with complex sales processes, multiple communication channels with your customers and larger customer bases.
This is because CRM (Customer Relationship Management) allows you to track all your customer interactions across different channels like email, phone calls or social media.
CRM can also help you gather information about your customers from various sources, such as:
- The web pages they visit on your website;
- The products they buy from your website;
- How frequently do they buy from you;
- Where are these people located geographically? And so forth.
CDP vs CRM
CRM is a tool that helps businesses manage their customers. CRM helps you keep track of all your customers and their interactions with your business, including information like who they are, where they live, what they’ve bought from you before, and when it was purchased.
CRM is a historical record of customer interactions. In contrast, CDP uses real-time data and analytics to provide insights into customer behavior so that you can improve those relationships in the present moment.
Hopefully, this article has helped you understand the differences between CDP and CRM. Both can be powerful tools for your business, but knowing when each is the right choice is important. So, if you’re looking for ways to improve customer experience or help your sales team close more deals, then a CDP may be just what you need!