What is the difference between a Customer Data Platform – CDP and a Customer Relationship Management – CRM Platform?

A Customer Data Platform – CDP and a Customer Relationship Management – CRM platform share some similarities

However, their primary purpose and function have many differences.

Let’s start by understanding each one of them separately:

Customer Data Platform – CDP

A CDP is a system specifically designed to create a customer database that includes complete historical and behavioral data about the customer. This could include website visits, app sessions, and even content affinity. All of this can be integrated with machine learning to send personalized marketing offers to customers.

Customer Relationship Management – CRM

CRM enables you to focus on your business relationship with individual customers. Often wrongly interpreted with just sales, CRM even stores the data of your suppliers, service providers, and customers. It is a tool that can be used by all divisions of your business, from HR and accounts to supply chain management.

So, what are the key differences between CDP and CRM?

Here are seven of the most common deviations:


Customer Relationship Management platforms, although used by the entire organization, was primarily designed for sales, i.e., managing the company’s interactions and relationship with customers. It is used to store information and inquiries made by potential customers.

CRM is used to track transactions, analyze the sales pipeline, keep on top of customer communication, and make notes about customer feedback for future reference.

A Customer Data Platform is used as a tool to design an innovative marketing strategy for the entire business. CDP helps in identifying a segmented audience, and this aids in creating personalized campaigns for them.

Data Source

A CRM stores data of customers who have either transacted or communicated in some way with the business.

On the other hand, a CDP combines multiple sources and captures data from social media, apps, point of sale, and e-commerce transactions all into one platform.

Customer Journey

CRM solutions typically cannot match customer interactions over different channels. For example, a teenage girl shopping for tennis shoes visits the brand website, clicks a Facebook ad, and then after a few days orders a pair of shoes over the phone. Most CRMs do not have the machine intelligence to pick up on this customer behavior and track her purchase journey, which could be vital information to target that particular audience.

A Customer Data Platform tracks the customer with their “personally identifiable information” and uses machine memory to associate the customer with their particular method of initiating purchases or making transactions with a business. As in the above example, the CDP can now precisely extract how teenage girls with a particular demographic shop for tennis shoes, at every customer touchpoint. This helps in creating more personalized targeted campaigns for a segmented audience.

Data Capture

CRMs cannot pick up offline data. So, let’s say a teenage girl after visiting the brand website, clicks on the Facebook ad, reads a blog on tennis shoes on the company website and then decides to make an in-store purchase. A CRM would not be able to track this customer interaction unless it was manually entered – these solutions focus only on known customers and prospects.

A CDP captures both online and offline data. Since it associates unique personal identifiers such as phone number, email, mailing address, etc., it can give a full 360-degree view of the customer. So, in continuation with the above example, if after a month the teenage girl clicks on another brand ad and orders a tennis backpack online, this entire customer transaction is historically recorded by the platform. Cumulatively, this data can then be run via customer analytic tools to target a particular customer demographic behavior.

Data Duplication

CRMs focus on customer transactions and are not designed to tackle multiple data types. So, if a person has transacted via email and then via a website purchase, these data points are often recognized as separate entities, thus creating multiple records for the same customer. This depreciates the quality of data in CRM.

A CDP maintains unified data. So, even if data is being captured from multiple channels, it will be tagged to a single customer. Let’s say a person named “Robert Turner” purchases trousers in-store with the name “Bob Turner,” and then later signs up for a newsletter subscription with the name “Robbie Turner.” A CDP will assign both of these transactions to the original “Robert Turner,” thus avoiding data duplication.

Information Technology – IT Elimination

CRM databases are highly complex and necessitate that the organization has an IT team for both setup and management.

A CDP maintains a simple and easy to use the database, even by marketers. It has in-built modules to handle complex processes and might require IT support only for initial setup. Marketers are then directly able to churn data and readily use it for analysis.

User Profile

CRM data can only track interactions with known customers. No doubt, a lot can be learned about the unfamiliar customers, and targeted marketing to these customers could be done. However, the limitation with CRM is that this can be done only with known customers already in the database.

CDP has the capability to identify both a known, as well as an anonymous customer, and displays a single customer view. This is one of the biggest advantages that CDP offers over CRM.

CDPs and CRMs have some similarities, but in essence, a CDP is a much more complex and comprehensive solution that can dig deeper into available data and go beyond gathering data on existing contacts and customers.

The result?

A better view of your market and the opportunities that exist – meaning you’re arming your marketing and sales teams with the insights they need to drive results.

Source: https://www.technative.io/cdp-vs-crm-whats-the-difference/

Author: Taj Nota is VP Professional Services UK at NGDATA. NGDATA helps brands in data-driven industries, such as financial services, telecom, utilities and hospitality, to drive connected customer experiences. Our AI-powered CDP and Digital Transformation Services put people at the center of every business via Customer DNA, which continuously learns from behavior to deliver compelling experiences for brands across the globe.

Customer Data Platform – CDP and Data Management Platform – DMP: Key Differences, Benefits, and how they co-Exist

Customer Data Platform – CDP and Data Management Platform – DMP: Key Differences, Benefits, and how they co-existed

Better Together In Powering A More Successful MarTech Stack

Organizations that want to stay ahead of the curve and compete in today’s fast-paced consumer market know that customers must be at the center of everything they do. This means providing the right experience at the right time, which requires real-time data and the correlation of that data across relevant marketing touchpoints and channels that can be tied back to an individual.

Brands are looking at Customer Data Platforms (CDP) and Data Management Platforms (DMP) to help capture, correlate, and manage their customer data, but many are confused as to exactly what each technology is and which solution is better suited for their organization based on the feature set of the platform at hand, and the answer could very well be both.

What’s the difference between a CDP and a DMP? Which benefits does one offer that the other doesn’t? Do they work together or in parallel? Should an organization have both in their martech stack? Here we explain the key differences between each solution so you know what the best choice is for you.

Customer Data Platform and Data Management Platform

What is a CDP?

A Customer Data Platform (CDP) is a service to capture, correlate, and activate customer data across multiple channels, devices, and technologies. They provide a single view of the customer and allow for powerful data enablement across multiple teams, tools, skill sets, and features. CDPs create centralized data to be used by all facets of an organization in real time.

What is a DMP?

A Data Management Platform (DMP) aggregates website behavioral data and categorizes it into taxonomies which are used to build segments. Segments can consist of first, second, and third-party data, which can be used for analysis and distribution into other adtech systems, primarily DSPs, to enable the buying and selling of programmatic advertising. The purpose of DMPs is to help brands drive more visitors to their websites through top of funnel targeting with the goal of generating more leads into the sales funnel. Examples of DMPs are Salesforce Krux and Oracle Bluekai.

Why are CDPs So Hot Right Now?

DMPs were formed to understand digital behavior across the web, and by nature are designed to communicate with other technologies that utilize third-party cookies, like DSPs. Following marketing cloud acquisition, DMPs tried to take on the role of integrators and identity resolution tools, but because they can only manage third-party cookies, true identity resolution could not be accomplished and data activation across multiple channels and tools couldn’t be done efficiently.

Enter the CDP

As true identity resolution requires having multiple identifiers unified into a single profile and the ability to ingest data from all customer data sources CDPs entered the space to achieve what DMPs alone could not. With the rise of global privacy regulations, a single view of the customer and storage of that single view has become a top priority for organizations.

Key Differences Between a CDP and a DMP

Key Difference

Anonymous in nature

Resolves identity down to a specific person

ID Management Limited to the storage of third-party identifiers, natively in platform Ability to store and persist all identifiers associated to a person, natively in platform
Visitor Matching Heavily reliant on probabilistic identifiers Based on deterministic identifiers
Data Ingestion Capable of both offline and digital data ingestion, however data needs to have already been matched to a third-party identifier within the DMP prior to ingestion Capable of ingesting both online and offline data, with no previous data matching in the CDP required
Data Enrichment Based on third-party data blending and/or look-alike modeling Based on the first-party dataset captured and correlated in platform, option to augment with third-party data sets
Data Activation Primarily other third-party based AdTech platforms All tools and channels, based on visitor identifiers


Better Together: How CDPs and DMPs Work Together

When talking about CDPs and DMPs it’s important not to think of each solution in an either/or capacity, but rather as two solutions that are complementary to each other within a martech stack.

Due to the nature of data ingestion and ID resolution addressed above, CDPs are better qualified to be your single source of truth as it pertains to your customer data. Data should be analyzed and modeled in the CDP for a true understanding of behavior across all touchpoints. CDPs should then be the point of customer data orchestration to all tools including the DMP.

The DMP, utilizing the granular insights from the CDP, will create better look-alike audiences which will improve engagement and ultimately ROI throughout your marketing stack.

What Is First, Second, and Third-Party Data?

First-party data is the data that your organization collects directly from your customer base from your digital properties or anywhere your customer data is stored.

Second-party data is another organization’s first-party data which has been shared directly with your organization.

Third-party data is any information collected by an entity that does not have a direct relationship with the customer the data is being collected on. Often times, third-party data is generated on a variety of websites and platforms and is then aggregated together by a third-party data provider such as a DMP.

What is a Cookie?

A cookie (when used in web terms) is informational data that’s stored on a customer’s browser after they visit a website so their preferences and behaviors are remembered and used in future requests and interactions.

First-party cookies are used to collect first-party data. First-party cookies can only be accessed by the domain they are set on and thus cannot be accessed across domains.

Second-party cookies do not exist. Second-party data is collected by first-party cookies.

Third-party cookies are set by a domain other then the domain the visitor is currently viewing. The nature of third-party cookies allows them to collect data across domains but not be accessible by the current domain being viewed.

Source: https://tealium.com/resource/fundamentals/cdpanddmp/

What Is a Customer Data Platform (CDP) and What Are the Benefits?

What Is a Customer Data Platform (CDP) and What Are the Benefits?

Effective personalization is only ever as good as the quality and breadth of your data.

Disparate data and incomplete records leave many businesses unable to join up the dots and build meaningful customer segments. Without these, effective personalization may not be possible.

The answer?

A single customer view made possible by a Customer Data Platform (CDP). In this blog post, we explain what a CDP is and why you need one.

What is a Customer Data Platform?

A Customer Data Platform (CDP) is a database for marketers that provides a single view of all your customer data. It does away with silos and brings together data from every customer service and marketing channel your business has.

A CDP brings together:

  • online transactions
  • in-store purchases
  • contact profile
  • location data
  • website behavior
  • email engagement

A CDP aims to enable true cross-channel personalization and customer journey automation. To provide the fully rounded view of your customers needed to do this, it integrates with your existing CRM and eCommerce platform which allows you to analyze and act on everything you’ve learned about your customers, in one place.

Implementing a CDP ensures your campaign personalization is based on a comprehensive understanding of how your customers behave. Increased engagement and conversions are a natural result.

Benefits of a Customer Data Platform

A CDP provides several obvious benefits. To help you build a business case, we explore each one in this section.

Saving time

Having a CDP saves time. Taking different data points from multiple marketing and customer service channels every time you want to build a campaign is time-consuming and cumbersome.

A CDP integrates with your CRM and multiple other channels, bringing together all your data automatically which makes a single customer view accessible instantly and creates dynamic segmentation.

Working with big data

Working with large datasets is tricky at the best of times. But in some instances what you hope to achieve might not even be possible without a CDP.

Spreadsheet applications like Excel are great at manipulating small datasets, but if you’re working with big data, you’re going to find it extremely difficult to do basic filtering. You’ll likely run into memory issues, errors and slow down. Excel might even grind to a complete halt as it struggles under the weight of your data.

Excel also has limits on the number of columns and rows which means you’ll need to split your database multiple times and repeat the same task over and over. The key limitation though is that your data will always be a snapshot, dynamic updates as engagement changes will not be possible.

How do we define big data? If you’ve got over 100,000 contacts in your database, then you’re going to need to upgrade from a spreadsheet to a CDP.

Avoiding personalization fails

When you try something clever with personalisation—but get key information wrong—you often make things worse than not personalizing at all and can easily cause your contacts to disengage.

For example, you may email product recommendations that include something your customer just bought in store. Without a CDP, there is a real risk of this happening.

This kind of personalization-fail makes it clear to the customer that your messages are automated and poorly-segmented. Not only may this irritate them, but it could make them unsubscribe completely.

Matching multiple data points about one customer

When you have a bunch of disparate data sources, you can end up with duplicate records for the same customer. Each may contain parts of the puzzle that need to be pieced together to personalize for them in a meaningful way.

A CDP joins the dots for you, matching customer identities from different devices and channels. It combines this with the real-time website and in-store data to give you an accurate, up-to-date view of your customers in one place.

Analyzing your audience

A CDP gives you instant access to consolidated cross-channel data, meaning you can analyze consumer behavior and answer key questions about your audience.

For example:

  • Who are your most loyal customers?
  • Which products are popular with certain demographics?
  • Who hasn’t made a purchase recently?
  • Which customers are coming to the end of their subscription?

Building real-time behavioral segments

When it comes to personalization, a CDP means you can build segments based on real-time behavioral data.

This advanced segmentation is the cornerstone of behavioral marketing. It ensures customers receive timely, contextually relevant messages that they find engaging.

Increasing revenue

Running effective customer journey automation from a CDP allows you to grow customer engagement and therefore gives you the capability to promote them through the desired lifecycle with your brand, improving both customer experience and conversions.

Not only this, but next-level personalization makes consumers feel more connected to your brand, building loyalty, promoting advocacy and boosting customer lifetime value.

The optimal outcome being a bigger return on your marketing investment and a more profitable and accountable marketing operation.

Improving reporting

A CDP also allows you to measure and report more easily. Having cross-channel data in one place makes calculating important marketing KPI’s much simpler.

When you don’t have to spend ages creating reports, you have more time to analyze them, allowing you to pinpoint areas to improve and continually build on your success.


A Customer Data Platform (CDP) allows you to access, analyze, and act on everything you know about your customers which means you can do more with your data and personalize your marketing in increasingly nuanced and effective ways.

The potential results are improved customer experiences, more conversions, increased customer loyalty, and more revenue.

Without a Customer Data Platform (CDP), it is hard for marketers to reach their full potential.

Source: https://dma.org.uk/article/what-is-a-customer-data-platform-cdp-and-what-are-the-benefits

Author: David Judd
Chief Commercial Officer

Datadog Log Management is now Health Insurance Portability and Accountability Act – HIPAA compliant

Datadog has achieved the Health Insurance Portability and Accountability Act – HIPAA compliance for its SaaS platform Log Management, so it can now better reach more customers in healthcare industries.

Datadog has achieved compliance with the Health Insurance Portability and Accountability Act of 1996 for its Log Management service. With its new HIPAA-compliant software, Datadog claims it can better serve its users in healthcare industries.

By regulating how organizations collect and use patient information, HIPAA makes it challenging for software vendors to cater to medical- and healthcare-focused customers. Meeting HIPAA requirements means Datadog’s customers can use the Datadog Log Management service for applications that process, maintain and store protected health information.

As technology continues to infiltrate end-user lives, vendors continue to work toward bridging the gap between tech products and healthcare to bolster the quality of life; Datadog’s HIPAA-compliant software is a stepping stone to reach that shared goal, according to the vendor.

Datadog provides monitoring services for hybrid cloud applications and claims to increase efficiency and visibility across an organization. Its SaaS offering Log Management is a unified log management platform that allows users to monitor logs, metrics and request traces.

Datadog Log Management offers the following:

  • log troubleshooting, analysis, and customizable searching;
  • full observability of systems;
  • real-time observation and full, centrally stored archives; and
  • built-in integration to support centralized log data from any source.

HIPAA compliance may keep Datadog competitive among other end-user experience monitoring providers — like SolarWinds MSP, IBM, and Riverbed — in a rapidly growing market. Data Bridge predicted the global market will rise from $1.63 billion in 2018 to $7.41 billion by 2026.

Along with its HIPAA eligibility, Datadog also received Service Organization Control 2, or SOC 2, Type 1 and Type 2 certification — passing security and privacy audits for data hosting, data processing, and SaaS — and is GDPR compliant.


Article: https://searchhealthit.techtarget.com/news/252464340/Datadog-Log-Management-is-now-HIPAA-compliant?utm_campaign=shealth_hit&utm_content=1559573071&utm_medium=social&utm_source=twitter

Author: Sabrina Polin
Reporter, Products Content – TechTarget