You may have heard but have yet to understand CRM and CDP. What exactly do they mean? And which industries use them?
Here, they’ll clarify the difference between CRM and CDP so that you can make an informed decision on whether or not these technologies will be right for your business.
There are two main types of software used in the business world: customer relationship management (CRM) and customer data platform (CDP). But out of CDP vs CRM, which one is right for your company?
CRM focuses on improving existing organizational processes by collecting information about customers.
This allows companies better to understand their needs, interests and buying behaviors. For example, CRM uses this information to create segmented campaigns that can be tailored more specifically to each individual group of consumers.
CDP is similar in its goal of providing businesses with insights into their customers’ behavior patterns, but it also has some additional features that make it more useful than a traditional CRM system.
Adobe Real-Time CDP professionals suggest, “Use a CDP when you want broader insights and are ready for big-picture data trends.”
For example, CDP includes tools for targeting specific groups based on their behaviors. It’s able to analyze data across multiple channels, such as email or social media, and its cloud-based solution means there’s no need for hardware updates once installed at your headquarters location (which makes upgrades easier, too!).
You might be wondering what exactly the difference is between B2C and B2B industries. In a nutshell, B2C stands for “business-to-consumer,” while B2B stands for “business-to-business.” In other words, B2C companies sell directly to the consumer, whereas their counterparts in business-to-business (B2B) do not but instead sell to other businesses.
As you can see, many different types of industries fall under these categories as well: retail, manufacturing/ production, service providers/ consultants (like lawyers), etc. Now let’s take a look at some specific sectors that use CDP or CRM solutions today!
- Retail – This covers all businesses that sell products directly to consumers, such as grocery stores and big-box retail stores.
- Food and Beverage – This includes restaurants and other food service businesses.
- Fashion and Apparel – Companies in this industry sell clothing and accessories, like shoe stores or jewelry retailers.
- Travel and Hospitality – This sector encompasses travel companies that offer services like hotels, airlines, car rentals and cruises.
- Consumer Packaged Goods (CPG) – This is a broad category that refers to consumer goods sold by retail or wholesale distributors to individual consumers at the consumer’s home or work location (e.g., beverages).
Both CDP and CRM are used in the e-commerce industry. E-commerce is a great example of how customers can access information on their own rather than relying on salespeople to provide it for them.
For example, when you buy an item online and then return it, you will receive a refund that’s processed by the retailer automatically through your bank account. This is done without human interaction because there are many different ways to process payments electronically these days, making it simple enough that even those who aren’t tech-savvy can participate easily (and often free of charge).
In conclusion, now you have seen that CRM and CDP are beneficial for the e-commerce industry.