As third-party data becomes increasingly difficult to use due to evolving privacy regulations, businesses are looking to make the most of their first-party data to improve their customer engagement. Three terms that often come up in discussions about managing customer data are the Customer Data Platform (CDP), the Single Customer View (SCV), and Master Data Management (MDM).

While these concepts may seem similar, they serve distinct purposes and have unique characteristics. In this post we’ll explore the differences of each to help you better understand which solutions may be most suitable for your organisation’s needs, and why you probably need all three.

Customer Data Platforms

A Customer Data Platform (CDP) is a specialised software platform designed to collect, unify, and analyse customer data from various sources. CDPs focus on providing a comprehensive view of individual customers, allowing businesses to personalise their marketing efforts and improve customer experiences. Here are some key characteristics of CDPs:

1. Data Integration: CDPs are good at collecting data from multiple sources, including websites, mobile apps, transactional systems, CRM systems, email marketing platforms etc. They consolidate this data into a single customer profile.
2. Real-time Data: CDPs often operate in real-time or near-real-time, with the most modern ones based on event-driven architectures, ensuring that customer data is up-to-date and can be used for immediate activation.
3. Customer Engagement: CDPs excel at facilitating personalised marketing campaigns and improving customer engagement by offering insights into customer behaviour, preferences, and interactions. Multi-channel engagement this will normally be done in conjunction with a Customer Engagement Platform (CEP).
4. Limited Data Quality Control: While CDPs centralise data, not all of them place as strong an emphasis on data quality and governance as MDM systems do.

Single Customer Views

A Single Customer View (SCV) is an approach or strategy rather than a specific technology or platform. It refers to the goal of creating a unified, 360-degree view of each customer by consolidating data from various sources. An SCV can be implemented using various tools, including CDPs and MDM solutions, depending on an organisation’s needs. Here are some key characteristics of an SCV:

1. Data Unification: An SCV focuses on integrating data from diverse sources to create a comprehensive customer profile, enabling organisations to understand customer journeys and interactions better.
2. Holistic View: An SCV aims to provide a holistic and unified view of customers, helping organisations to eliminate duplicate or conflicting information and avoid customer identity issues.
3. Improved Decision-Making: By having a single customer view, businesses can make informed decisions, enhance customer service, and tailor marketing efforts effectively.
4. Flexibility: An SCV can be implemented using various technologies, making it adaptable to an organisation’s specific requirements and existing systems.

Master Data Management

Master Data Management (MDM) is a broader data management strategy and technology that focuses on creating a single, consistent, and authoritative source of master data across an organisation. Master data typically includes information like customer names, addresses, product codes, and other critical business data. Here are some key characteristics of MDM:

1. Data Governance: MDM places a strong emphasis on data governance, data quality, and data stewardship. It ensures that master data is accurate, consistent, and reliable.
2. Cross-Functional: MDM is not limited to customer data but extends to all types of master data across an organisation, such as product, employee, and supplier data.
3. Centralised Control: MDM typically involves a centralised data repository or hub that acts as the single source of truth for master data. This ensures data consistency and reduces redundancy.
4. Long-term Data Management: MDM is ideal for organisations that require a robust, long-term solution for managing master data across the enterprise, and it may not provide real-time data integration like CDPs.

While CDPs, SCVs, and MDM solutions have their distinct roles, they would normally complement each other in a holistic data management strategy. Implementing all three provides a powerful combination: a CDP for supporting real-time personalisation and customer engagement, an SCV is used as an overarching strategy for unifying customer data from various sources, and MDM for robust data governance and consistency across the organisation.

The key is to align these solutions with your organisation’s specific goals and data management needs to achieve the best results in enhancing customer experiences and driving business success.

How Peak Interval can help

At Peak Interval, we can help you unlock the full potential of your marketing and data technology stack. Whether you’re looking to integrate new tools, optimise your existing systems, or develop a tailored customer engagement strategy, our team of experts will guide you every step of the way.

From selecting the right platforms to ensuring seamless data integration and effective product development, we help you make the most of your technology investments. Get in touch today to explore how we can help you achieve your business objectives with a customised approach to your MarTech needs.