Customer Data Platform Vs Marketing Automation

Listen to This Article

When deciding between a customer data platform and marketing automation, you may be wondering which is better. Here, we will look at the benefits of each and the cost of implementation. The final decision depends on your company’s goals and resources. Here are the top reasons to use a customer data platform. Listed below are the main differences between the two technologies. Read on to learn more. (Updated: April 2019)

Differences between a customer data platform and marketing automation

A Customer Data Platform (CDP) is a type of marketing software that works in tandem with marketing automation tools. It holds data about your customers and is designed to be more open and flexible than a standard marketing automation platform. However, this doesn’t mean that CDPs are a replacement for marketing automation. Instead, they work together to make your marketing process more efficient. Here are some important differences between these two types of software.

A customer data platform combines information from various sources to create a comprehensive profile of a consumer. It also can retain that data for a long time and update it in real-time. It can personalize customer interactions across multiple channels, such as email, social media, and mobile. A Customer Data Platform can combine all consumer data into one 360deg profile and enables marketing automation to work across multiple channels.

A Customer Data Platform makes use of automated tools to scan data and identify errors and duplicates across different sources. This data is then processed by purpose-built features. A Customer Data Platform also performs an automated routine scan and determines whether old data should be retired. By integrating all information into a single data repository, CDPs ensure accuracy in the decisions made based on that data. CRM solutions, on the other hand, rarely check the data that enters the system, making it impossible to flag errors and inconsistencies that can lead to inaccurate analysis.

As mentioned above, CRM is a valuable tool to use when your marketing automation efforts are aimed at increasing customer retention and maximizing revenue. Customer Data Platforms help businesses achieve these objectives by unifying all customer data and allowing marketers to target customers based on their preferences and behavior. The platform also helps marketers analyze customer data at a higher level of accuracy than traditional marketing tools. By using this data, marketers can make smarter decisions based on the insights they’ve gathered about their customers.

When selecting a Customer Data Platform, be sure to consider what your business needs. CDPs can help you acquire and retain customers with a full-stack ML algorithm. Relevant communications increase the conversion rate and improve marketing ROI. And while CDPs can help your company gain an edge over competitors, they don’t have the functionality to handle all aspects of customer data. And in addition, CDPs are generally more complex and costly.


One of the most important features of a Customer Data Platform is its ability to collect a variety of different data sources. This data helps create a more personalized customer experience. Additionally, a Customer Data Platform will help businesses craft an effective marketing approach based on the data it collects. This ultimately results in higher-quality leads. Let’s look at some of the benefits of Customer Data Platforms. And, what makes one better than the other?

Customer Data Platforms can store all kinds of customer data from all sources, including eCommerce systems and administrative and service systems. Combined with other types of data, Customer Data Platforms give marketers an accurate picture of every customer interaction. They can also enable better use of first-party data for programmatic advertising. Customer data can also be exported to CRM systems and SFTP zones. A Customer Data Platform must preserve the original data, ensuring an audit trail of all data loads.

A Customer Data Platform is complementary to marketing automation. It will allow you to personalize customer engagement across all channels. However, it should not be confused with a marketing automation platform, which is a stand-alone product. It can supplement but not replace marketing automation. It is best used alongside marketing automation. Combined, these two systems can help your business grow. The benefits of both are similar.

Customer Data Platforms make marketing more effective. Customers use various channels and devices and expect a more unified customer experience. They are often highly skeptical when presented with advertisements for products they already purchased. By combining all the information collected, Customer Data Platforms can help companies understand customer behavior better, which leads to increased customer loyalty. This data is collected through the purification of customer data. Ultimately, the benefits of Customer Data Platforms outweigh the disadvantages of marketing automation.

A Customer Data Platform, otherwise known as a Customer Data Platform (CDP), is a central database that collects and organizes relevant sales and behavioral data from customers. By storing this data in a single location, customer data platforms enable businesses to create extensive, individual data profiles. These detailed profiles help them understand and predict future behavior. With this, they can make informed decisions regarding what products and services to offer to customers.


Customer data platforms, or CDPs, provide a single source of truth for all of your customer data. Instead of relying on separate platforms to store and analyze this data, they connect all of them in one unified database. Customers can access this information in real-time and across multiple channels. These platforms are becoming increasingly important for marketing automation and CRM solutions. Costs: Customer data platforms can range from $250,000 to more than $1 million, depending on features.

Data: A customer data platform combines information from all sources, including offline sources, to provide a single, comprehensive view of your customers. Once you have this information, you can segment it in multiple ways, tailoring your marketing campaigns to each customer’s preferences. One customer data platform also integrates with an email marketing platform, allowing you to create automated drip campaigns. The benefits of a Customer Data Platform extend to all marketing activities.

Features and price: A marketing data platform should include the features and functionality necessary to run campaigns. Enterprise corporations may want to spend more, but that doesn’t necessarily mean that they won’t benefit from a lower price. Rather, they should invest in a CRM or marketing automation system with more advanced features. To maximize your ROI, you need to consider the needs of every division in your organization. Then, choose a CRM or marketing automation platform that offers the best of both.

Customer Data Platforms simplify the integration process by providing native connectors for several martech systems. Most marketing organizations have built their marketing stack, but the problem of integrating data from these systems is a major challenge and costs U.S. brands millions of dollars every year. Most CDPs provide a basic API, which allows your marketing automation software to integrate with their existing systems.

When comparing the two types of tools, consider how each can help you grow your business. Marketing automation platforms automate marketing communications, but customer data platforms give you access to valuable insights and data. However, both have their pros and cons. Customer data platforms have an extensive database of customer data, which can help you understand your customers better and create better marketing campaigns. And, marketing automation can help you reduce operating costs by eliminating lag and data silos.


A customer data platform is a platform that centralizes all customer data sources, breaks down data silos, and provides a single, unified view of the customer. Customer data platform capabilities include built-in campaign execution modules, predictive analytics, and persistent customer profiles. In addition, customer data platform features include a real-time predictive model of customer behavior and purchasing capacity. This information can be used to make more informed decisions about which products and services to promote.

A customer data platform also facilitates targeted content delivery during live interactions. To do this, the customer data platform must accept input from the customer-facing system, find the customer’s profile in the database, and then select relevant content to deliver. This data can then be used to create a personalized marketing campaign that will generate more qualified leads. However, a customer data platform can also help with digital advertising, by sending lists of customers to advertising systems. Customer data platforms are ideal for digital marketing, especially in light of the California Consumer Privacy Act, which goes into effect in January 2020.

Choosing between marketing automation and a customer data platform can be a complex task. Both systems have their pros and cons, and it’s important to understand which is best for your business. Marketing automation and data-driven marketing strategies are both great ways to reach new customers, but they’re very different. Customer data platforms offer a unified customer database that provides rich insights into customer behavior. The results can range from an increase in customer engagement to a 10 percent increase in marketing-spend efficiency.

Implementation of a customer data platform requires a large investment in software, and it can make or break your business. While there are advantages and disadvantages to both, the benefits outweigh the drawbacks. In most cases, marketing automation software does not collect data in real-time. It compresses data from various online sources, limiting the effectiveness of the data. However, with a customer data platform, the data is continuously updated and unifies itself as customers interact with the brand in real-time.