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DMP vs CDP: what's the difference and what's in it for you?

The world of data can sometimes feel like a maze of abbreviations. DMP, CDP, CRM. They all look alike, but in practice mean something completely different. And that very difference is important if you want your organisation to work smarter and more efficiently with data. In this article, we dive into the difference between a DMP (Data Management Platform) and a CDP (Customer Data Platform). Find out when you should choose a CDP or a DMP.

Jenne Morsink - Digital Marketeer bij Cube - Oldenzaal
Author Digital Marketeer
Reading time
4 min

What does a DMP do?

A Data Management Platform is built to collect, organise and intelligently deploy large amounts of data. Think of data from different sources: your website, your webshop, your CRM, ERP or even external databases. Everything comes together in one system, so that you can not only store this information, but actually work with it.

The strength of a DMP is that the platform does not just look at individual customer data, but rather reveals patterns and structures. This allows you to more quickly predict which products are interesting for a customer segment, or automate processes that previously required a lot of manual work.

At Cube, we often set up DMPs as the hub of business logic: the system that ensures data flows between different applications. This way, you avoid duplicate administration, make processes smarter, and give customers a better experience.

Wat is een data management platform / middleware

What does a CDP do?

A Customer Data Platform looks a bit like a DMP at first glance, but it focuses on one thing: the individual. In a CDP, you mainly collect first-party data (information you get directly from your customers, such as contact details or behaviour in your app/website). Everything is linked to a customer profile, allowing you to communicate very personally in marketing or sales.

Whereas a DMP looks mainly at groups and segments, a CDP zooms in on the individual customer. Useful if you want to run hyper-personalised campaigns or have a marketing automation strategy that relies on one-to-one interactions.

To make things more concrete, well-known CDPs include Segment (Twilio Segment), Tealium AudienceStream, Salesforce Data Cloud, BlueConic, Adobe Real-Time CDP and Bloomreach. All are tools with a strong focus on marketing and personalisation.

The difference in practice

  • Scope: DMPs collect and structure data from all possible sources; CDPs focus on customer data.

  • Use: DMPs help organisations automate processes and connect data; CDPs are mainly used by marketing teams for personalised campaigns.

In short: a DMP is the engine behind your business processes, a CDP is the extension of your marketing team.

DMP of CDP?

A DMP and a CDP may look similar, but they have very different roles. Whereas a CDP is mainly about personal marketing, a DMP helps you make your entire organisation work smarter with data.

Choose a CDP if your marketing team wants to work primarily with personalised campaigns, one-to-one customer communications and long-term customer profiles.

Choose a DMP if your organisation needs a central place where all data comes together, processes need to be automated and you want to keep a grip on your business logic and systems.

DMP

So what does a DMP specifically benefit your organisation?

The benefits of a DMP.

Simple integration

The DMP acts as a link between your existing systems. Instead of building separate links, you link all your data to one central place.

Scalability

A DMP grows with your organisation. Where standard software often has limitations, a custom-made DMP offers flexibility to add extra functionalities when you need them.

Central business logic

A DMP allows you to apply business rules to your data, ensuring consistency and reliability.

Grip on data

By managing data centrally, you increase quality, uniformity and reliability. You retain full control and rely less on external tools.

Quicker innovation

A DMP allows you to quickly develop new functionalities on top of your existing systems, allowing you to respond to changes in the market immediately.

Cost savings

By managing data and processes centrally, you avoid inefficiencies and duplication, saving costs and eliminating the need for separate tools.

Leveraging data for your organisation?

At Cube, we see that many organisations struggle not so much with reaching their customers, but with connecting systems and automating processes. This is precisely where a DMP comes in handy. It ensures that data from, for example, your webshop, your financial system and your CRM do not get stuck in separate islands. Everything comes together in one central place.

A DMP and a CDP may look similar, but they have very different roles. Whereas a CDP is mainly about personal marketing, a DMP helps you make your entire organisation work smarter with data. And that is exactly what we at Cube support organisations with: using data in a way that adds value for your business and your customers.

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