Every business aims to achieve better growth, as it leads to increased engagement and higher sales. However, this growth necessitates the collection of leads from various sources. Managing a large amount of marketing data can be daunting without the appropriate tools. That’s why many businesses have questions about CDP vs marketing automation.

But you may wonder if they’re different or the same. You may also wonder if you need one or both. This article will assist you in determining the optimal choice between CDP and marketing automation. As you read, you’ll learn about their specific functions and determine which is the best fit for your business.

What is a CDP?

A CDP, or customer data platform, is an application for compiling customer information. It creates a detailed customer profile by compiling data from different sources. To gather information, customer data platforms sort through sources such as social media, legacy systems, and emails. They also source data from CRMs, DMPs, ERPs, APIs, and microservers. 

The platform then combines all the compiled data into a single, rich customer database. CRP users can then use this info in their marketing and customer support strategies. Because of the compiled information, CRP users get a deeper understanding of customer behaviors. They can create better customer journey maps and improve lead-scoring predictions.

CDPs’ Benefits and Drawbacks

Customer data platforms offer tons of benefits for their users. Their in-depth data collection capacity means you can personalize customer content. They also easily integrate with other tools and can adapt to your business’s growth. Because they provide deeper insights, you can easily map customer habits and preferences.

But CDP marketing also includes a few cons, some of which include:

• Investment and setup are costly and time-consuming.
• Manual updates result in limited automation.
• Data management and storage needs are pricey.
• Full adoption means longer training time.

What is Marketing Automation?

A marketing automation platform, or MAP, is software that allows automated operation. These tools handle repetitive tasks like messaging, ad management, and content scheduling. MAPs are usable on almost every level of a business. Their inclusion makes the workflow easier and faster, allowing human experts to focus on complex tasks.

Different marketing automations are available, each with its own specific function. Usually, the company integrates them into its CRM systems, although some also offer native automation services. Because the software minimizes manual effort, companies depend on it more, so members can better focus campaigns.

Marketing Automation Platforms: Benefits and Drawbacks

Their automation features streamline tasks, saving time and energy. By using fewer personnel, you can also reduce your operational expenses. Digital marketing automation handles more aspects, thereby achieving higher productivity. This operation optimization enables you to reach benchmarks faster and improve your marketing efforts.

However, we cannot automate every task. Plus, marketing automation isn’t straightforward in a constantly changing business environment. Automation can also render tasks generic, so you lose out on creative marketing opportunities. 

Differences Between CDP and Marketing Automation

Both tools are a wonderful addition to marketing campaigns. They aid in achieving general marketing objectives for any business. But you’ll note many differences when weighing CDP vs marketing automation. You can observe these differences in their performance across a range of conditions, including:

Data Sources

CRM systems typically integrate digital automation platforms. These serve as their main sources of data collection. As a result, digital marketing automation software only collects information from marketing-specific relationships. That means some of their sources include website traffic, email engagements, and social media.

However, marketing CDPs can gather and combine data from a broader range of sources. They design their systems to penetrate and extract individual-related data. They fetch said data from anywhere they can, and in real time. This gives them a superior advantage over MAPs in terms of updating customer information.

Lead Segmentation and Management

MAPs effectively handle repetitive lead management tasks by automating processes such as

• Lead tracking,
• Lead scoring,
• Lead nurturing, and
• Lead follow-ups

However, marketing CDP software is better at lead segmentation because its data on customer behavior is deeper. They also allow for better predictive lead scoring based on comprehensive data. You can also personalize your marketing outreach with up-to-date information about their operations.

Goals and Outcomes

Handling customer data is a common ground when comparing CDPs and digital automation. However, the purpose they serve differs as much as the final outcome of their operations. The primary focus of customer data platforms is on data collection and management. Their vast reach enables you to better understand the customers.

However, automation in digital marketing focuses on streamlining tasks. Their goal is to reduce operational time and effort so that marketers can focus on strategy and creativity. This makes MAPs better at increasing productivity and efficiency. Customer data platforms are the best means of achieving deeper customer insights.

Scalability

Many digital automation tools don’t easily integrate with various channels and platforms. Therefore, you may miss out on numerous marketing opportunities. This poses issues for businesses, especially those focused on growth.

Customer data platforms, however, don’t have this problem. Their core design allows them to dig through a wide range of sources for data. This means as your business grows, the software adapts to handle more volumes. Plus, they integrate easily with tons of platforms, so data management is much easier.

Data Privacy Priority

Marketing automation platforms come with varying data privacy features. Therefore, the level of data privacy features your software offers may require further evaluation. However, CDP marketing tools take data privacy and compliance more seriously. And they should, considering they handle massive amounts of customer data.

So, customer data platforms constantly update privacy regulations at various levels. They also prioritize the collection of first-party data, thereby strengthening the trust between business and customers.

Customer Insights

Since they streamline tasks, automation in digital marketing provides detailed customer interaction reports. They’re also a handy source for learning how well a campaign is doing. However, their focus on speed and efficiency limits their capacity for deeper insights.

Marketing CDPs, however, grab data from tons of sources and compile it to provide the ultimate customer journey map. They can also forecast future client behaviors and actions using updated predictive analysis. So, with customer data platforms, you can tailor a more personalized and targeted marketing strategy.

CDP vs Marketing Automation: How to Choose

Both tools excel in different areas of marketing campaigns. Before making a decision, determine the areas in which they should be most effective. Do so by considering these factors:

• Marketing Objectives: Are you looking to automate repetitive tasks, improve targeted marketing, or enhance data management? Your core marketing needs will help you decide when comparing CDP vs marketing automation.
• Analytical Capacities: If your campaign depends heavily on in-depth customer analysis, a customer data platform may be your best bet. But marketing automation platforms also offer enhanced reporting capacities. So, compare their analytical degrees to determine which best suits your business.
• Ease of Use: Digital marketing automation systems are generally simpler to operate. Their user-friendly interfaces and simplified setup process mean anyone can handle them in a short time. Customer data platforms, however, take time to set up. To learn their operation, you may even need technical assistance.
• Budget: Both marketing CDPs and MAPs come with varying cost implications. However, customer data platforms are more expensive to set up and integrate. As you use automation in digital marketing, you also incur hidden costs. So, consider these factors before estimating your budget.

With these details, choosing between the two should be easier. However, experts generally recommend combining both for specific tasks. Combining both tools improves the results of marketing tasks like data sourcing and lead segmentation. So, analyze areas where you think both can help you better.

How We Can Help

We’ve seen businesses struggle to choose between CDPs and marketing automation. Both techniques aid growth, but for different reasons. Marketing automation solutions automate monotonous processes, while CDPs provide deep customer insights.
North South Tech does more than just provide tools; we also help you understand modern marketing technology. We’ll determine your needs—improving customer comprehension, operational efficiency, or both.
Our methodology suits your business goals. We’ll explain each solution’s pros and cons, taking into account scalability, data privacy, and marketing goals. We can even assist you in using CDPs and marketing automation together if it makes sense for your company.
Never let indecision stop you. Let’s discuss how these powerful technologies can revolutionize your marketing. Contact North South Tech to start a data-driven, effective marketing plan.