CDP vs. Marketing Automation Platforms: The key differences

Data is king, queen, and all the knights of the round table in our current interconnected world. As a result, many different types of data platforms, tools, and technology have sprung up to offer marketers the ability to better reach their customers, better manage their customer data, and better plan their marketing campaigns. 

However, not all data tools are equal. Some are good at one thing only, while others offer far more robust features. And some are better when they work together. We’ll be discussing customer data platforms (CDPs) vs. marketing automation platforms in this article and look at how these two systems differ, how they are the same, and how they can work together —or apart— to achieve results.

The top Customer Data Platform uses and capabilities

A customer data platform (CDP) is a robust tool that provides an all-in-one resource for viewing, analyzing, and leveraging customer data. A CDP uses your own first-party data to find your customers and the relevant details.

CDPs keep track of information like:

• First and last name
• Telephone number
• Email address
• Purchase history
• Behavioral data (like time to purchase, purchase type, cart tracking, etc.)

This type of customer data, especially when presented as a cohesive customer profile, is invaluable to marketing departments when planning campaigns or determining the best ways to reach customers. CDPs also allow for audience segmentation based on shared data. This further fuels the power of marketing efforts by reaching a distinct segment quickly.

The potential CDP drawbacks

The biggest issue with CDPs is that they are more complicated to understand and manage. Much of the data that CDPs run on is unstructured and requires some data analysis for it to truly make sense. Also, users of CDPs need to understand what it is they’re looking for in the data. It’s important to know what types of data is available, as well as what types of audience segments and customer targeting can be done with it. 

When evaluating CDPs, you’ll want to find a system that can handle multiple inputs from different sources so you know you’ve built the most comprehensive audience segments that you can. Building a complete customer profile requires input from other systems, including first-party cookie data, order management systems, online analytics, and more. The idea is to remove the customer data silo and create one repository for all of this data to live. 

Additionally, while the basic tools available in a CDP will be invaluable to many organizations, the larger and more complex your customer base becomes, the more specificity you’ll need. Look for CDPs that offer the ability to make changes and evolve with you and your organization.

A look at marketing automation platform uses and abilities

Similar to CDPs, marketing automation platforms (MAPs) are capable of managing many bits of data and reaching customers based on different datasets. However, MAPs have a specific function. They are used to make the life of marketers easier by doing exactly what their name suggests: automating marketing tasks. 

The biggest feature of any marketing automation platform is its ability to automate marketing functions. There is a glut of options on the market, so the easiest way to determine which platform might be right for you is to conduct a quick search for MAPs in your industry. 

The most common automated tasks that are handled by MAPs include:

• Lead qualification
• Campaign creation
• Workflow simplification
• Lead nurturing

Through automation multiple teams within an organization, like sales and marketing, can work from the same platform, making it easy to move prospects through the sales funnel. 

The potential MAP drawbacks you may face

The main drawback to marketing automation platforms is that their scope is limited. They don’t allow for scalability, and if your company is growing fast enough, you will soon need bigger and better tools that most don’t have.

Another big disadvantage to MAPs is that they’re limited to the customer data they have access to. MAPs can use data from many different sources, but they’re unable to aggregate that data in order to build cohesive customer profiles. Unlike CDPs, MAPs perpetuate the data silo nature of having customer data spread across a variety of channels. This can result in inaccurate targeting and personalization when executing marketing campaigns.  

How does a CDP feed into an automated marketing platform?

CDPs and MAPs work independently of each other, but they often work in tandem. While a marketing automated platform can become overwhelmed while attempting to handle too much data, a CDP is designed for that very job. As a result, using the CDP to build targeted customer segments and accurate customer profiles and using your MAP to automate the campaigns that use this data is a very real example of how the systems can work together. 

There is no overlap between a CDP and MAP, so having both is not a form of redundancy. However, you may only have the option to choose one. If that’s the case, using a customer data portal is preferable. A CDP allows you to do more with your data and apply that data to different applications and uses. Especially as you are looking to grow, more ways to manipulate and analyze your data is highly important. The CDP gives you more flexibility for the future. 

Lytics: The innovative specialists in customer data

Using Cloud Connect, a reverse ETL, Lytics makes it easy for businesses to leverage their customer data in marketing campaigns. Pulling together the data you need from a variety of sources is a complicated job, which is why Lytics specializes in the tools and strategies that make adding this important marketing element to your organization. To get started, connect with Lytics today and start a free trial of Cloud Connect.