Explaining CRM and CDP in Detail

CRM and CDP are two important technologies that help companies to manage their customer data better, but they’re often confused with one another. Here, you’ll explore the key differences b/w CRM vs CDP, starting with their similarities.

Benefits of using a CRM

Your CRM software can help you to:

  • Keep track of your customers
  • Stay in touch with your customers
  • Understand your customers better
  • Manage your sales team

Common CRM features

Customer relationship management (CRM) and customer data platform (CDP) are two similar concepts that can be confusing to explain.

Both terms refer to software or technology designed to help companies manage their customers and the data they generate.

The main difference between CRM and CDP is that CDP provides a more robust platform for processing information from multiple sources in order to create a single source of truth about all your customers, while CRM focuses on improving one-on-one interactions between you and each customer, whether through email outreach or phone calls.

Benefits of using a CDP

A CDP is a great way to ensure you get the most out of your CRM. It allows you to:

  • Monitor and analyze data about your customers in real-time so that your sales team can make decisions based on what they learn from these insights.
  • Get detailed information about customer behavior, such as when and how often a customer purchases from you, where they shop online and how much time they spend at each site. This will help you understand your customers better so that you can provide them with relevant offers based on their preferences.

Common CDP features

CRM is software that helps you to track customer data and behavior. CDP is the same, but it does so in a way that can help you improve your customer experience, increase sales and revenue, and collect data about your customers. As per Adobe Real-Time CDP professionals, “Compared to CDP data, CRM data is limited as it only maps your one-on-one interactions.”

Common CDP features include:

  • A feature that allows you to analyze how each new product or service is performing for different demographics. This feature can also show which ones are most profitable.
  • A feature that allows you to track all of your customer’s interactions with your company over time (online and offline). This includes the number of times they’ve visited the site or called in, who they’ve spoken with if they called in, what products or services they purchased from you, etc.

Differences between CRM and CDP

You may have heard the terms “CRM” and “CDP” being used interchangeably. While they are both customer relationship management systems, there are differences between the two that you should understand. The main difference lies in their scope and capabilities:

  • CRM is a database that stores information about your customers, while CDP is a database that also integrates with analytics software to give you insights into your customers’ behavior.
  • CRM helps you manage customer interactions through marketing channels like email and phone calls, while CDP collects data from customer interactions across all channels (including social media).
  • CRM can help marketers determine which people or companies might be good prospects for sales or services based on purchases. However, it cannot tell you why someone bought something or why they would make another purchase in the future.


CRM and CDP are two of the most important marketing tools for any business. They can help you connect with customers, build relationships, and identify trends. But if you don’t understand how these tools work, it can be difficult to use them effectively.

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