What is the difference between a Customer Data Platform (CDP) and a Data Management Platform (DMP)? Definitions, collection methods and best practices for analysis

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Contents What is a Customer Data Platform? What is a data management platform? Main attributes of a CDP How CDPs Work Main attributes of a DMP How DMPs Work Best practices for a customer data platform in 2022 Best Best Practices for a Data Management Platform in 2022

Customer Data Platforms (CDP) and Data Management Platforms (DMP) are not interchangeable, either scenario. Although to the uninitiated it may seem like the same thing, there are important differences between the two and significant advantages for both. The main differentiators are their use, the types of data they collect, the degree of personalization of this data and the duration of retention of this data.

What is a Customer Data Platform?

Customer data is information that consumers and potential or existing customers leave behind (a kind of “cookie trail”) when they interact with businesses online and offline. These could be in-store interactions, phone calls, website visits, social media interactions, or blog post impressions.

A CDP is software that combines data from this myriad of first-, second-, and third-party interactions to create a single view of customers and their journeys through the business. An essential tool for marketers, they collect data from all touchpoints and interactions with a product or service. This can then be segmented in numerous ways to meet customer needs in a more personalized way, whether or not they have had positive experiences with the company.

The main types of data collected are:

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