What is a CDP, is it the same as a CRM? In this blog we will try to explain in a simple way what the use of each of them allows your company to do, and their main differences.
The massive expansion of CRM makes many companies see this as the end of their road to become a Data-Driven Company, however, every day there are more possibilities to know your customer and improve your Customer Experience. This is essential today as 52% of consumers have switched brands in the past year due to a bad Customer Experience.
What is a CRM and what is a CDP?
A Customer Relationship Management (CRM) is a technological tool that allows companies to know their customers through their relationships or points of contact with them. Thus, the sum of your customers’ interactions with your campaigns, or promotional methods are accumulated in your CRM to achieve a better understanding of your customer.
Customer Data Platform (CDP) is a platform that allows you to bring together all the data collected by your company (1st Party Data); the data you have from third parties, such as Social Media, Google Analytics or the CRM itself (2nd Party Data); and socio-demographic data, or the market in which you operate data(3rd Party Data). The combination of all this data will allow you to obtain a 360º vision of your customer, which added to the use of Artificial Intelligence (which CDPs have integrated), you will be able to understand your customer or potential customers down to the smallest detail, and thus predict future behavioral trends.
Why are companies not happy with their CRM?
Did you know that 52% of sales leaders are not happy with their CRM? To understand this we need to look at the problems companies are encountering with their CRM:
- Tension between departments. Interdepartmental communication in a company is key, and therefore, the data they have and the way they deal with it must be aligned. Many companies find that this does not happen, leading to disputes between Marketing and Sales.
- It does not predict behavior. Analyzing the behavior of your customers is very useful to understand what they like, or what their preferences are regarding your company. However, with the advances in technology, not being able to predict behaviors with the necessary information is a bit vague.
- The data is not up to date. Many users have long complained that some CRMs are not constantly updated, and therefore their reliability can be low. By not having the data constantly updated (in real time), confusion can arise, and the data may not be read correctly.
Is the solution in the CDP?
CDPs where born with the intention of overcoming these problems. With an intelligent CDP, you will have all the information unified and updated in real time, all departments can have access to the same information, and the sum of the information from each department will make the data obtained more enriched.
But one of the biggest changes from a CRM to a CDP is the ability of the CDP to predict future behavior with AI. By studying the behavior of each person, by unifying all the data, you can know what their movements will be and be able to gain efficiency in your campaigns, and anticipate the movements of users.
If you have John as a customer of the loyalty plan of your clothing shop, and you unify the data that he gave you when he joined (name, date of birth, address, etc.) with: his purchase record, the analysis of your sales by dates in recent years, and the effect that certain types of campaigns (online, posters in the street, etc.) have on the audience to which John belongs. You will be able to know with very high accuracy how much John will buy next month if you run an online campaign.
WHY FLYDE?
Do you want your company to move on to the next level? A CDP is the key tool that will allow you to maximise the potential of your data and grow your business. Working like the big multinationals in the market, which already have this type of software, and having control over all your data is now very simple.
Moreover, if you do not have IT or Data Scientist teams, this tool will allow you to outsource this function. And if you have them but want to reduce their workload and give more autonomy to your marketing and business teams when it comes to working with data, implementing an easy-to-use CDP would be the best option for your company. It will allow any single member of your company to use it, as this softwares are prepared for them.
Start taking control of your data today.
Schedule a meeting with one of our experts and discover how FLYDE can help your company achieve its goals.
