If you’re into marketing, data is really important to have a better understanding of your customers. For that purpose, we need a tool to collect and manage customer’s data.
So there are two major software systems that are used to collect and manage customer data, CRM (Customer Relationship Management) and CDP (Customer Data Platform).
So we often get asked, what’s the difference between these two?
What is the Difference Between CRM and CDP?
They’re both actually important but not the equivalent, CRM ranks as the most common technology, which is used by many high-performing companies to collect and manage their marketing data, while CDP stands next.
Both of them used to collect and manage customer data, but not similarly.
CRM organizes and manages data based on customer-facing interactions with your support team. On the other hand, CDP collects data on customer behavior with the product or service.
CRM collects data such as client names, history of interaction with the sales team, sales tickets or forms they have filled, and more. While CDP data includes: identity data, descriptive data, behavioral, and quantitative data.
Which one is right for you?
Well, it all depends on your preferences that, what kind of business you’re running, and what type of information you required.
Use CRM if you want to manage customer relationships with your company in a more efficient way. It’s great for teams of all sizes, it’s quite an effective tool but not enough simple.
Use CDP if you want to understand that who your customers are and how they engaged with your business. This gives a more comprehensive view of your customers, which you can apply in various ways to market your services or products or to grow your business.
We would love, if you signup for Ironfunnel, our team is ready to help you out.
Iron Funnel CDP or Iron Funnel CRM?
Well, we have both just because you will need both, but look, we don’t have the best CRM which is probably Hubspot and we don’t have the best CDP which is probably Segment, but we do have the best integration between CRM and CDP. because you don’t need them separately, you need them working together.