What Is the Difference Between CDP and DXP?

by Eli Merrell | Last Updated: Feb 27, 2023

There are so many acronyms in tech it can be hard to keep them all straight. You may be asking yourself what is a DXP, CMS or CDP and which one do I need? You’re not alone. Let’s dive into each.

What Is the Difference Between a CDP and DXP?

A CDP is a Customer Data Platform. This resource is used by marketers to create targeted and personalized marketing campaigns by aggregating customer data from multiple sources into one place. By having all of their customer data in one place, marketers can have a holistic view of their customers. A DXP is a Digital Experience Platform. DXP platforms are solutions that allow consumers to use core technologies and create a digital experience. A digital experience is anything created that can be displayed on a screen on mobile, tablet, or desktop. Think of pulling together your video management system and form integrations into one place where they can seamlessly be used in the same digital experience. There are numerous digital experience platform companies to choose from when evaluating the best DXP for your business. You might be thinking “what is DXP vs CDP?” A CDP is used to house customer data to be used in marketing campaigns. While a DXP pulls together your tech stack to create an easy-to-use and interactive digital experience. A DXP can be linked to a CDP to seamlessly funnel customer data into your CDP via the use of forms. This depends on the DXP platforms you are considering for your project.

What Does CDP Mean?

CDP stands for Customer Data Platform. This tool is designed to be used in various marketing efforts. This tool often brings together zero-party and first-party data and consolidates it into one platform thus creating a single and complete profile on each customer. This tool makes it easier for marketers to build personalized and targeted marketing campaigns. There are a lot of CDP platforms out there but let’s focus on some of the best CCDP platforms. Here are a few CDP examples: Insider was voted first easy to use in Customer Data Platform software by G2. Insider enables marketers to connect data across channel systems but better support their marketing efforts. Bloomreach empowers brands to build empowering customer journeys with a focus on personalization. Klaviyo was voted second easiest to use in Customer Data Platform by G2. Many brands such as ColourPop, Huckberry, and Chubbies use this CDP. These are just a few CDP examples. There are many more. It is important to do your research and make the best selection for you and your brand.

What Is the Benefit of a CDP?

There are a lot of benefits of a CDP. A CDP can be a single source of truth for all customer data. Many CDP platforms aid marketers in building personalized and engaging marketing campaigns. These marketing campaigns are made even better if your brand can collect zero-party data. This is data willingly provided to your brand by the customer themselves. Most CDPs rely on first-party data, which is data collected through channels and other interactions. There are many other benefits of a CDP:

Ensuring data protection and privacy
Creating omnichannel customer experiences
Reducing data silos
Increasing efficiency
Improving the customer experience
Driving revenue

What Is the Difference Between CRM vs CDP vs DMP?

What all of these systems have in common is they are ways to manage data. Where the differences between CRM vs CDP vs DMP come in is what data they are managing and how that data is used by the team. A CRM is a Customer Relationships Management Platform. This system manages all customer relationships and interactions in one place. A CDP is a Customer Data Platform which manages all customer data in one place making it easy for marketers to build campaigns. A DMP is a Data Management Platform. This platform is made for advertising especially in campaigns to attract new customers. The data collected by a CPD is used for marketing allowing marketers to create personalized and effective marketing campaigns. The data stored in a CRM is often used with sales in mind. It is to log and track communication with sales leads and contacts. A DMP is used for advertising focused on supporting web displays. A Data Management Platform (DMP) collects information from cookies while a CDP collects first-party data and a CRM typically relies on the sales team to manually input data. There is a lot to consider when diving into what is the difference between a CDP and a DXP and even more when you add a DMP. The solutions best for your business depend on what you’re trying to accomplish. If you are wanting to centralize your tech stack and create interactive and engaging digital experiences. A DXP is for you.

Meet with one of our experts to see how easy it is to centralize your product data, manage digital assets, and create digital product experiences. Trust us…you’re going to be wowed.

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