Customer data is the most important type of information a company owns. It can be especially hard to manage. When it is scattered across multiple documents and inboxes, maintaining high productivity is a challenge.
So many businesses apply various tools specifically designed to properly gather and organize customer data. They may have some common features and significant differences. Oftentimes, it is hard for users to decide which platform is suitable for their company. For instance, CDP vs CRM. When you understand the key differences, making the right choice is easy.
This toolkit is widely used in marketing activities. Many professionals are familiar with it. What does CDP stand for in marketing? A CDP is a customer data platform that is intended to collect, organize and centralize customer data. It combines information from various sources and creates a unified database available to other systems. This software allows companies to segment their data to better understand their customers and conduct more personalized marketing campaigns. For instance, it is easy to determine your target audience based on everyone who has visited a certain page on your website. CDPs gather personal and engagement information, behavioral and attitudinal data. It helps build complete and dynamic customer profiles.
The following benefits of using a CDP system can be outlined:
A single place for all your data. Oftentimes customer data comes from multiple channels. If it is not centralized, it might be hard to get a clear picture of your clients’ behavior and preferences. A CDP system lets you improve your customer experience by providing a single platform for all your data.
CDPs often integrate with multiple external applications. It allows you to have a more complete solution and easily connect your systems and data.
CRM is a powerful software system designed to help organizations with sales, marketing, and service management. It enables companies to put a strong focus on their relationships with clients, partners, and suppliers. Using this platform makes it easier to acquire new customers, retain the existing ones, and provide good support.
Creating a centralized database is one of the common features CRM and CDP platforms offer. CRM systems store information about every lead, deal, and all interactions with your customers. They can track users on your website and accumulate the required data. Also, this software enables you to compile in-depth reports and automate a range of repetitive tasks.
Using CRM software comes with these advantages:
Today, there are various CRM solutions on the market. Many companies apply these tools to build lasting relationships with their clients and streamline business processes. Cloud-based systems have become standard. However, some providers also offer self-hosted solutions.
Although CRM platforms and CDP systems have a range of similarities, they use different methods to collect and manage customer data. CRMs mainly focus on fostering client relationships and facilitating the customer path to purchase at each stage, such as building brand loyalty.
CDP applications put a stronger focus on collecting various types of customer data from online and offline sources, no matter if it is structured or not. This information is then used for analyzing order history and other behavior patterns to provide further recommendations regarding content or eCommerce.
It is not surprising that CDP, CRM, and DMP applications can be easily confused with one another. They all collect users’ data but do it differently. Some users do not see the difference between CDP and DMP apps. However, there is a big one. Customer data platforms use all types of data they collect for marketing purposes, whereas DMP applications mostly focus on third-party information. DMPs are built for advertisers to help them improve such an aspect of marketing as ad targeting.
There is also confusion regarding customer relationship management vs customer service management services. The first one provides a comprehensive understanding of the customer, their purchasing habits, and their needs. It aims at developing lasting connections and improving the overall buying experience. Customer service management solutions are intended to provide assistance with any product or service. They focus on enhancing customer satisfaction by quickly resolving all their complaints and queries regarding a certain product. Providing the needed support at the right time helps gain trust and loyalty.
CRM systems are primarily created for sales departments to collect and manage the details about leads, prospects, and clients in a sales pipeline. They are perfectly suitable for optimizing 1-to-1 interactions with customers. Marketing enters the scene through integration with marketing automation platforms. Transactional data is added from financial systems.
CDP apps are mainly designed for marketers. Since this software merges information from multiple channels, marketing specialists can get every detail about their customers. Some robust tools include such features as data quality and modeling, real-time personalization, and workflow automation.
CRM platforms gather and store data on direct interactions with clients via email, phone, live chats, websites, and social media platforms. You can have a complete view of an individual record on one screen. Availability of customer relationship management data in a single place is crucial for call centers and support teams. Being able to access lots of relationship histories helps provide a better customer experience during 1-to-1 interactions.
CDPs collect such personal information as names, contact details, birthdays, payment preferences, etc. Also, it gathers valuable data on website visits, subscriptions, social media and customer support interactions, email open rates, transaction details, loyalty programs, and more. Having access to all this information in one place lets businesses conduct a thorough analysis and gain a deeper understanding of what their customers need.
If you are on the fence about choosing the right platform, consider the needs of your entire company and separate departments. So CRM vs CDP. If your company mainly needs to get a comprehensive view of who your consumers are, how they engage with your services, you can opt for a CDP solution. It will assist you with creating efficient campaigns and making informed marketing decisions.
If your company requires an effective client relationship management platform, you may choose a CRM app. You will be able to manage your interactions with people in a more personalized way and gain their loyalty. Some toolkits cover many business aspects and can become a unified workspace for your team. Customer relationship management platforms are suitable for various industries, startups, small and medium-sized businesses, and large enterprises.
There is an opinion that small organizations do not need a CRM system since they process smaller volumes of information compared to big companies. Besides, this software might be expensive. However, it is not true. Small companies can greatly benefit from implementing such a tool. Relationships with customers have become more important than ever. Providing an excellent consumer experience is a competitive advantage any business should strive to gain. There are multiple solutions designed specifically for smaller teams. They are more affordable, easy to set up, and do not include overly complex functions.
Here are the main features an efficient CRM platform should provide:
Comprehensive databases. CRM databases make it easy to collect and store every interaction a business has with its clients. Since it is all kept in one place, there is no need for team members to log in and out of multiple applications, copy and paste account numbers into various tools to get basic information about their customers.
Full-featured CRM solutions can cover all aspects of your business. You can easily collect and organize your customer data, group your contacts, manage tasks and projects, compile in-depth reports, track performance, automate recurring tasks, and more.
Bitrix24 is one of the all-in-one CRM platform providing a range of robust tools to help you streamline your business processes. The software is highly customizable and suitable for companies of any size. It offers cloud and self-hosted solutions, free and paid versions. The program is available on mobile devices, so it is easy to access your account from wherever you are. Its key features include:
An unlimited database. With Bitrix24, you can create a free database of your past, existing, and potential clients, get a broad view of their purchases and other actions related to your business.
Implementing an all-in-one solution to your business processes can increase your team's productivity in no time. Customizable platforms easily adapt to any company's needs.