Do you want to know the difference between CDP and CRM? Well, you come to the right place. Read along as this article provides a thorough explanation of the differences between these two. Both customer data platform or CDP for short and customer relationship managers of CRM collects data from customers for business purposes; however, they are fundamentally different.

Customer relationship’s primary users are not marketers; however, they sometimes had to deal with it to handle customer data and perform analysis. Moreover, CRMS was made for the business to the business setting and evolved into the business world for customers or clients.

On the other hand, a customer data platform or CDP was made, keeping marketers’ needs in mind and was also categorically made for a business to customer setting. Below are specific differences between the two technologies, which business leaders and decision-makers must be aware of.


CRM is an enterprise technique, which optimizes revenue as well as profitability while promoting customer satisfaction as well as loyalty. CRM software offers functionalities to businesses in various segments such as sales, customer service, marketing, as well as digital commerce.


The inception of CRM has been utilized for tracking, building, as well as strengthening customer bonds to drive client retention and loyalty. As a user-interface for data collection, CRM directly impacts the growth and revenue of an enterprise. So, CRMs are part of a more comprehensive management technique, which supports businesses in interaction with clients, to fuel and improve scalability.

Made For

The uses of CRM are primarily intended for the sales team to track, seize, and handle the information about new prospects and clients in a sales process. Marketing is brought into the fold of CRM through the integration of sales with marketing automation platforms or capturing sales activity from sales reps and their tools. Aside from this,  the entire transactional information is integrated with the assistance of financial systems. Customer support systems lend service as the whole activity.

Data Management

When it comes to data management, there are limitations of the data or channels sources of CRM can take data from. Typically, CRM is utilized to track transactions, handle customer data, assess sales pipeline, and keep the records of the customers. CRMs primarily contend with first-party information that is sourced via marketing and sales.


CPD refers to a marketing system that combines and brings together business customer information from various channels like marketing to allow customer modeling and simultaneously optimize the timing and targeting of messages and offers.


Businesses need a website-based interface wholly made for marketers, which is more analytical than CRM. Something that can smooth the progress of the collection of data, segmentation as well as help in taking actionable steps. It is essential as marketing is growing and getting bigger, and data integration and multichannel campaigns turn out to be a vital part of it.


A CDP is a data hub made firstly for online marketers. This is utilized for a thorough analysis of the customer’s behavior and collecting business intelligence concerning newer methods of connecting with the client.

A CDP has become the main source of every minute detail pertaining to clients, as it consolidates customer-related information from an array of applications, channels, and systems. Besides that, modern CDPs are integrated with essential features such as data quality, data modeling, automation, and real-time personalization.

Data Management

A CDP is able to ingest data of the customer from all types of offline and online sources.  CPD is also able to make a rich view of customers in data from different separate sources of customer information, which include historical background and behavior, to make a 360-degree view of the client for developing personalized experiences. Also, it stores the behavior, intent as well as choices of client via monitoring their activities. Also, it includes de-duplicating the identities, segmenting, and profiling of customers.

Main Functions

There are also differences in the main functions of CRM and CDP. So, let us see how one differs from the other when it comes to the main functions.


CRMs are largely utilized for execution purposes. They are ideal for developing customer assistance dashboards or automation systems of email. They make direct interaction with clients possible and are often made firstly for optimizing one type of customer interaction. CRMs are utilized by agencies in many ways, such as:

  • Front office associated sales
  • Analyzing forecasting and pipeline
  • Mining for getting and drawing clients
  • Hit and Miss inspection for a go-to-market technique
  • Customer service
  • Automation of marketing through performance analysis as well as campaign tracking
  • Ease for buying via quote to cash processes


On the other hand, CDPs gather, consolidate, sort out, and present data of the customer for further execution by different marketing technologies or personalization engines. They can include CRMs and other customer-facing technologies to gather data about customers, which include purchases, ages, clicks, page views, and many others for segmentation as well as modeling. A lot of businesses use CDPs in ways such as:

  • Data management that takes account of integration, cleaning as well as validation
  • Identifying as well as categorizing client attributes and behavior in offline and online systems
  • Define customer profiles as well as management for future application and reference
  • Analysis of customer behavior to boost segmentation
  • Assessing the purchasing history of the customer and other actions for recommendations about content or eCommerce
  • Exporting customer lists, which are segmented for deriving intelligence as well as executing campaigns
  • Predictive examination for guesstimating client behavior

To Sum Up

CRM systems take on with clients directly by making persistent customer profiles to help a different company in various functions; however, they don’t combine and gather vast amounts of information from many sources.

CDPs,  however, consolidate information of all types as well as from various kinds of sources. It doesn’t matter if it is structured or not structured, internal, or external so that a complete and all-inclusive view of clients can be chalked out for a reasoned purpose.

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