Differentiation This Is How A Cdp Differs From Other Systems

We already know what a Customer Data Platform (CDP for short) is and what you need it forthis articleextensively described.

A CDP breaks down data silos in the company and cleanly connects ALL customer data across ALL channels. The goal: A consistent, personalized, cross-device and cross-channel customer approach – based on the customer lifecycle.

Google Analytics can also be used as a CDP – in many different ways.You can find out more about this here.

This is how a CRM differs from a CDP

In the past, it was customer relationship management (CRM for short) systems that were supposed to get data siloing under control. Because the goal of CRM systems is: Improving customer loyalty!

Important customer data, such as emails, phone calls and profiles on social networks, are stored in CRMs and clearly structured.

However, CRM systems are not designed to accommodate the enormous and often complex amounts of data from other systems.

They are also not suitable for merging and standardizing this data by comparing different (unique) IDs: the basic task of a CDP.

Unfortunately, from a purely technical perspective, a CRM is not suitable as a CDP.

Rather, the data from the CRM flows into the CDP, is restructured there and expanded and supplemented with valuable additional information.The beefed-up data is then made usable for the CRM in order to further improve the direct customer relationship.

This is how a data warehouse differs from a CDP

Even more traditional methods such as data warehouses (DWHs for short) could not solve the data siloing problem.

The data warehouse aims to bring together data from different systems. However, DWHs are created by IT teams with great technical know-how, but usually little marketing acumen(sorry!)created and operated.

Data is usually not updated daily, but weekly or even less frequently.

However, these must be available in (almost) real time in order to be able to respond digitally to customer needs quickly and correctly.

In addition, a data warehouse primarily supports analysis and not direct interaction with customers.

A DWH is therefore too technical, too complex, too extensive and too slow.

In comparison, the CDP is run by the marketing team. This also has full control over the system and is therefore flexible in its use. Setting up and maintaining it also requires in-depth technical knowledge – but not to the extent of a typical DWH.

The CDP complements (or replaces) the classic DWH and makes the company data usable for marketers and thus for marketing purposes.

This is how a data lake differs from a CDP

A data lake is a storage for both structured and unstructured data. Unlike a normal database, the data in the data lake is stored in its original raw format. They do not need to be validated or formatted when saving. Structuring only takes place when the data is needed. The schemas result from the queries of the analyses.

This makes the data lake extremely flexible and therefore particularly popular in the big data environment.

However, the data in a data lake is disorganized, inefficient, difficult to access and therefore difficult to use– and therefore neither suitable for the purpose of a CDP nor for the marketing team.

That’s why this more modern approach to data storage has not satisfactorily managed data siloing (from the marketer’s perspective).

This is how a DMP differs from a CDP

Finally, there is the data management platform (DMP for short), which could finally get data siloing under control. The name says it all so beautifully:Data Management.

Unfortunately, DMPs are specifically designed for programmatic display & Video ads are designed to improve ad targeting.

So they mainly operate in the online advertising world, focusing on 3rd & 1st-party data as well as anonymous segments and categories.>> For details see: What is a DMP?

Additionally, DMPs essentially collect cookie IDs and link them for audience targeting. The majority of the information expires after 90 days – the typical cookie lifespan.>> For details see: The new Google DMP in Display&Video 360: Audience Management.

CDPs, on the other hand, store and link ALL data from ALL channels and systems for an infinite (or desired) time.

So from a purely technical perspective, a DMP is not suitable as a CDP.

Rather, the data from the DMP flows into the CDP, is restructured there, expanded and supplemented with valuable additional information and then made usable for the DMP or in the DSP.

The DMP uses the CDP’s data for better targeting in the online advertising world.

This is how a marketing cloud differs from a CDP

The strength of Marketing Clouds lies in the automation of marketing processes, i.e. the automatic control of advertising messages in the company’s sales channels such as email, push notifications, social media, etc.

This also requires consolidated user and customer data from various data sources in order to create 360-degree user profiles.

Marketing Clouds come closest to the idea of ​​CDPs:Depending on the scope of functions and positioning, marketing clouds can eitheras a complement to or in competition with CDPsbe considered.

The CDP is increasingly being integrated into existing marketing clouds and acts as a higher-level authority. Due to its data strength, the CDP is mainly used to create complex segments. The segments are then sent to the Marketing Cloud, where they are used as the basis for campaigns across multiple channels. Marketing automation will continue to be done in the Marketing Cloud.

Conclusion & Summary

As you can read here,Customer data platforms are a relatively new marketing technology.

They specialize in consolidating user and customer data from various data sources to create 360-degree profiles and make them easily accessible to the marketing team. The goal: A uniform, personalized, cross-device and cross-channel customer approach.

CRM systems, DWHs, data lakes and DMPs previously had the same wish. However, these were not suitable as CDPs: either they could not process the enormous and largely complex amounts of data or they were too technical, too sluggish, too disorganized, too inefficient, …

CDPs have solved all of these problems: they use the advantages of all previous solutions without the disadvantages that result from them.

Would you also like to benefit from all the advantages of a CDP? Our analytics experts will be happy to advise you on creating your customer data platform. Contact us at any time:kontakt@e-dialog.group