Nowadays, everything revolves around data, and the use of this data is indispensable for most companies. An increasing number of companies are therefore faced with the choice of using a data platform to process and store this data. As a company, you naturally want to make a well-founded choice that takes into account the possibilities and limitations of various platforms. In short, there are three main differences, namely:
- Identification of visitors
- The data source used (1st, 2nd or 3rd party)
- Application possibilities of the data
In this article, we will highlight the differences between a DMP (Data Management Platform) and a CDP (Customer Data Platform). Although these terms overlap, they are both unique. Which of the two you can best use is based on the objective you have in mind as a company, and for what reason you want to store the data. Finally, we will show you which functions of a DMP and CDP the Shopping Minds data platform has, and why this offers a total solution with the most convenient functions of both a DMP and a CDP, so that you can set up a complete 360-degree customer view.
Customer Data Platform (CDP)
We start with the CDP, the Customer Data Platform. This goes way beyond a traditional CRM (Customer Relationship Manager). In a CRM system, it is mainly general and historical customer data that get stored, but with a CDP you get a better insight into all the motives of a customer. All interactions with a company’s website and apps are recorded here. The recorded data can be used for personalisation in different channels. A good CDP is the key to well-founded data-driven marketing.
A CDP mainly stores data of identified, known visitors. These visitors have already logged in, left an email address by subscribing to the newsletter or made a purchase. In short, data of (prospective) customers are recorded after the first interaction with the service. After all, it is a Customer Data Platform. The visitor data is linked to the email address at each visit. The data is mainly obtained through companies’ own sources, also known as first party data. This is also the reason why only known visitors who have left data can be tracked.
Data Management Platform (DMP)
In short, a DMP is a platform for registering, managing and using visitor data. An advanced DMP also records the moments of contact between a visitor and the service.
The aim of a DMP is to allow marketeers to record the motives and behaviour of their visitors and to provide insight in order to better understand it. Whereas previously, a DMP was mainly used to employ the data on advertising networks, there are a lot more possibilities nowadays.
For example, the technology collects data from both known and anonymous visitors to the website. These are categorised and segmented at the same time. Combined, all this data creates a complete 360-degree customer view, with exactly the customer journey that a customer takes. This data can then be used in other marketing channels, such as on-site, in DM, in advertising and the call centre.
Obviously, there is a lot of overlap between the two marketing technologies. After all, they are both useful for marketeers and designed to gain better customer insights. Nevertheless, there are elements that make marketing technologies different from each other.
Differences between CDP and DMP
The biggest difference between a CDP and a DMP is, as we also pointed out above, that both data from known and unknown visitors are recorded in a DMP, where only data from known visitors are stored in a CDP. In a DMP, a profile is compiled for each visitor based on the behaviour displayed on a particular channel. For example, an unknown visitor can be specifically retargeted via Google Adwords or programmatic buying based on this profile. A DMP can actually be described as a more comprehensive version of a CDP.
Another difference is the way in which the data is processed. In a DMP, the data is normally stored anonymously, whereas a CDP can recognise a customer as a person.
This brings us to the following difference. Because a CDP only stores data from known visitors, this marketing technology is a lot easier to integrate than a DMP. Because less data is stored, less needs to be logged, and so a tracker of a CDP will be less drastic than a tracker for a data platform. A DMP is a lot more complex. For these reasons, many companies only opt for a CDP. If this yields sufficient results for an organisation, a CDP is an excellent technology for tracking and targeting known visitors. If a company wants to take a next step in personalisation, it can choose to integrate a DMP, or collaborate with a company that has a plug & play DMP in which customer behaviour can be stored.
Which platform should I choose?
Whether you choose a CDP or DMP as a company depends on the objective you have in mind as a marketeer. Fortunately, the Shopping Minds Data Platform has the best of both. By storing all the behaviour of a website visitor on a website, the marketeers get a comprehensive overall picture of both known and unknown visitors. Another objective may be to find email addresses of (as yet) unknown visitors. You can achieve this with the SMart Profiling module. A third option is to combine first-party data with other media channels such as Google Adwords, RSLA or Display networks. Whatever personalisation methods you choose, the ultimate goal is to create a user-friendly and efficient website at the lowest possible cost, and thus increase conversion. In other words, turning data insights into conversions.
Below is an overview of the functions and their availability in various platforms:
|DMP||CDP||Shopping Minds Data Platform|
|1st party data||–||✓||✓|
|2nd party data||✓||✓||✓|
|3rd party data||✓||–||✓|
|Use in advertising||✓||✓||✓|
Shopping Minds Data Platform
Are you ready to take the next step with your company? Do you want to record customer behaviour of both anonymous and known visitors, without having to set up a DMP or CDP yourself? Shopping Minds can help you! With our Data Platform, you can be sure that all marketing channels seamlessly meet the wishes and needs of different visitors, because the offer is personalised. In addition, we offer various campaigns to increase the recognition on your site.
The Shopping Minds Data Platform stores visitor data completely GDPR-proof, and without the use of third-party tracking cookies. It is possible to recognise your website visitor as a person, as in a CDP, but with the advantages of a DMP. You can list both your anonymous and known visitors in one overview. The best of both worlds.
Would you like to know how Shopping Minds can help you increase conversion on your sales channels? Request a demo free of charge and without obligation.