Why is CDP better than a CRM?

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Why is a Customer Data Platform (CDP) better than a Customer Relationship Manager (CRM)?


Customer Data Platform (CDP) aggregates and organizes customer data across multiple touch points, creating a detailed image of each particular customer and their patterns. It collects real time customer data and structures it into individualized customer profiles. When used correctly it allows the business to leverage marketing strategies and provide a more individualized and improved customer experience.


Customer Data Platforms is the more individualized and detailed version of a Data Management Platform.“DMPs are cookie-based, do not create a persistent customer profile and integrations tend to be limited to advertising (not the full customer journey)” – Tealium. CDP’s collect data tied to a specific individual whereas DMPs collect anonymous users data.


Customer Data Platforms can be used as leverage to market more effectively because of the fact you have a more individualized look at someone’s preferences and patterns.


A CRM or Customer Relationship Management platform stores a customer’s transaction data plus some individualized concerns and data points.“They do not have insight into anonymous user behavior (often requiring a form fill or purchase), typically are focused on sales data and only have limited integrations to other systems” – Hill 2020. 


Where a CDP autonomously creates unified customer profiles with data gathered across a variety of online and offline channels, a CRM only tracks a customer’s intentional interactions with a company via manual entry.


There are many differences between a CRM and a CDP. Some key differences include:


  • Customer Data Platforms deeply analyze the lifetime of the customers journey
  • CDPs can collect data both online and offline automatically
  • CDPs can also collect data on unknown visitors
  • Customer Relationship Management platform will only analyze the sales line and potential forecasting of purchases
  • A CRM offline data needs to be uploaded manually
  • CRM can only collect data on pre-existing or prospect customers


With a Customer Data Platform you’re able to get more detailed and usable data, to make more effective and efficient marketing decisions. This platform compared to others, can increase sales and provide a positive and memorable customer experience.


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