Who Should Use What? CDP or CRM


Do you know which customer data platform (CDP) or customer relationship management (CRM) the solution is right for your company’s needs? In this article, you’ll explore the customer data platform vs. CRM differences and how to determine which one will work best for your business.

Audience Building: CDP vs. CRM

The CDP is better for building an audience, while the CRM is better for activating it. Both are useful for engaging and managing a customer experience.

CDPs are better at acquiring new customers because they can capture and store more data than a CRM. For example, a CDP can collect information from multiple sources, such as social media sites like Facebook and Twitter, email marketing platforms like MailChimp or directly through product websites like Shopify or Squarespace.

Audience Activation: CDP vs CRM

The key difference between the two is that CDPs are better at audience activation than CRMs, but CRMs are better at audience activation than CDPs.

Take a look at this chart:

  • CDPs have more advanced lead generation tools, like predictive analytics and campaign management. A good example is Salesforce Einstein, which helps you predict what your customers might need next so you can send them targeted content before they even ask for it.
  • CRMs have better conversion tools because they’re built specifically to help you drive sales by making it easy to see what your customer is doing on your website (like how many times they’ve visited) etc.

Customer Engagement: CDP vs. CRM

According to software professionals like Adobe Real-Time CDP, “CRMs and CDPs each collect and manage customer data differently.”

Customer Data Platforms (CDPs) are the better tool for customer engagement. CRMs are a better tool for customer relationship management. If you’re wondering why they’re different but interchangeable, it’s because they were designed to serve different purposes.

CRM systems were created to help businesses manage their relationships with existing customers by managing things like contact information, history and preferences.

CDPs collect data from multiple sources in order to provide insights into the behavior of prospects and existing customers so that marketers can engage with them effectively across channels—such as email or social media—and increase revenue through cross-selling opportunities or upsell opportunities in online stores.

Customer Experience Management: CDP vs CRM

  • Customer Data Platform (CDP)

For customer experience management, CDP is better than CRM. CDP can be used to personalize the customer journey through all of their digital touchpoints while also gathering actionable data that can be used across your business. This means you don’t have to rely on a separate tool for each function—you can collect information from everywhere and use it all in one place.

  • Customer Relationship Management (CRM)

CRM is better for managing relationships with customers or prospects, as it helps companies understand what motivates their audiences so they can develop strategies based on those insights. For example, if you know your audience wants access to discounts or exclusive offers online but not offline, you could create an app where users would only be offered promotions when they’re online, then send them push notifications when there’s something new available!

If you’re looking to grow your business, it’s important to know exactly what tools are needed. CRM and CDP can help with that, but which one is right for you? The answer lies in understanding the difference between the two—and how they can be used together.

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