CRM vs CDP: What are the main differences?

E-commerce brands rely on numerous marketing tools and apps. The customer relationship management (CRM) system and customer data platform (CDP) are two of the most powerful customer data management solutions.

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Primary focus on collecting and organizing data related to customer interactions that occur within the organization. Geared toward data-driven marketing and personalization efforts. Empower brands to create highly-targeted and personalized marketing campaigns based on granular customer insights. CDP functionality can be extended through a wide range of pre-built connectors and apps. These are built in conjunction with third parties to ensure rapid implementation without triggering compatibility or information security problems.

What is CRM?

How is a CRM used?

What is a CDP?

How is a CDP used?

What are the differences between CRM and CDP?

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CRM

  • Primarily focused on managing interactions and relationships with customers.

  • More transactional in nature and may not provide the same level of data integration and unification as CDPs.


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CDP

  • Consolidates and unifies customer data from various sources (typically first-party data), thereby creating a comprehensive and up-to-date customer profile.

  • Data collection includes contact information, as well as behavioral data, transaction history, and preferences.


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CRM

  • Primary focus on collecting and organizing data related to customer interactions that occur within the organization.

  • While CRMs may include data from emails, phone calls, and in-person meetings, they often lack the capability to incorporate data from external sources such as social media or third-party databases.


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CDP

  • Excel at ingesting data from a wide range of sources, both online and offline, such as website interactions, mobile app usage, social media engagement, email interactions, point-of-sale transactions, etc.

  • Capable of integrating structured and unstructured data from diverse touchpoints to create a comprehensive customer profile.


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CRM

  • Primarily used for managing customer interactions and relationships.

  • Essential for sales and (more recently) customer service teams, helping them track metrics such as leads, deals, and customer support tickets.

  • Facilitate communication and collaboration among team members, ensuring that customer inquiries and issues are addressed promptly.


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CDP

  • Geared toward data-driven marketing and personalization efforts.

  • Empower brands to create highly-targeted and personalized marketing campaigns based on granular customer insights.

  • Instrumental in optimizing the customer journey, improving conversion rates, and driving personalized experiences.


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CRM

  • Primary focused on managing interactions and relationships with customers.

  • More transactional in nature and may not provide the same level of data integration and unification as CDPs.


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CDP

  • Designed to seamlessly integrate data from various sources.

  • CDP functionality can be extended through a wide range of pre-built connectors and apps. These are built in conjunction with third parties to ensure rapid implementation without triggering compatibility or information security problems.


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