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CDP vs DMP: Choose the Right Data Platform for Your Business Needs

Florian Delval
Florian Delval

Director, Technical PMM

In this blog, we are going to explore the two types of platforms CDPs vs DMPs that are helping marketers make more informed decisions. Customer Data Platform (CDPs) and Data Management platforms (DMPs) are essential components of a data-driven marketing technology stack.

Each solution provides tools for marketers, sales, IT, and support departments on how to effectively target different audience segments of the population. Understanding what each platform offers and how it empowers all of your teams within your organization is essential during the evaluation process. 

As customers interact with your product and services across multiple channels, devices, and geolocations, they expect a personalized and seamless experience across all touchpoints. For brands to deliver on this expectation of a unified customer experience, they need the correct tech stack in place to generate customer-centric strategies and deploy them.

For marketers to be successful they need a martech stack that allows them to easily access and organize their customers’ first-party data and behaviors; while still allowing them to quickly and efficiently deliver a positive interaction through marketing automation.

Customer Data Platforms

CDPs recently entered the scene and now are being predicted as the #1 solution to help unify customer insights from all offline and online sources including historical, contextual, demographic, and behavioral information. Smart-hub CDPs are used for creating personalized customer experiences by collecting and tying together customer data through personally identifiable information (PII)-like email addresses and phone numbers-to create a 360-degree view of the customer. Unified CDP data is imperative for brands to be able to improve audience segmentation to AI predictions that drive intelligent and personalized experiences.

Marketing, sales, and support teams-that utilize a smart-hub CDP are able to deliver hyper-personalized opportunities across multiple channels through insights and a 360 customer profile.

Data Management Platforms

DMPs often leveraged by digital marketing agencies and/or in-house marketing teams use these technologies to identify audience segments by demographic, behavior, or location in order to improve target digital advertising campaigns.

DMPs aggregate high volumes of anonymous customer data originating from multiple online sources. The primary data sources for DMPs are second- and third-party data. DMPs must work with anonymous entities like cookies, devices, and IP addresses to exchange information about audiences while protecting personal privacy. Because different companies-including competitors-can usually access the same anonymous data, a data management platform does not provide a sustainable competitive advantage. Instead, it helps digital marketers better understand and target audiences.

As you can see these two systems are distinct in their use cases, users, and the data they collect. A few things that you should consider before deciding whether to implement a DMP vs CDP into your martech stack:

  1. Is your customer data siloed and how is your marketing, sales, and support team able to share and access this data?
  2. What type of user data do you currently have access and where is it being stored?
  3. Is your customer data secured, especially their PII?
  4. Are you focusing on personalizing individual experiences or targeting an audience for digital marketing campaigns?

Answering these questions will help you determine whether a CDP vs DMP is right for your business needs.

Florian Delval

Written By

Florian Delval
Author's LinkedIn Profile

Director, Technical PMM

For the last decade, Florian’s mission has been to empower enterprise organizations in their digital transformation process via the definition and deployment of a strong Customer Experience Stack. Florian educates enterprise organizations to increase the value of their technology investments in a complex and ever changing environment.

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