Understanding the Differences Between CDP, DMP, ESP, CRM, ERP

Date: 2024-01-18 | Time of reading: 8 minutes (1582 words)

The differences between cdp and others systems

Data is the fuel for marketing and sales. Every day, 328 million terabytes of information are generated. To navigate this vast stream of data and leverage it effectively, businesses require a Customer Data Platform (CDP).

Depending on a company's objectives, scale, and processes, various platforms are implemented: DMP, ESP, CRM, ERP, and CDP. Each of these platforms collects, stores, and organizes data.

In this article, we'll delve into what these abbreviations mean, identifying which among them is an automation system for marketing, where mass mailing services are provided, and why and when these platforms are beneficial for businesses.

What is DMP

DMP, or Data Management Platform, is a system designed for collecting, structuring, and storing user data used in product and service promotion. It's a critical software for marketing.

The DMP system stores three types of data:

  • First-party data: information gathered directly from users and a company's own resources, such as email, orders, website visits, and more.

  • Second-party data: data on user behavior on partner sources like websites, apps, social media, among others.

  • Third-party data, considered external, is presented by aggregators. These third-party insights contain general audience information encompassing behavior, purchases, preferences, and more.

When and why to use a DMP

  • Personalization. Having ample customer data allows tailored presentations of product benefits that matter to each customer. Personalized offers increase advertising effectiveness and the chances of conversion. DMP personalization occurs for segments formed based on gathered information.

  • Customer data management. Having a surplus of information doesn't equate to successful marketing. A DMP effectively collects and organizes data to better understand the audience.

  • Marketing budget optimization. Proper data management enhances advertising campaigns and helps avoid working with low-yield channels. Essentially, the budget isn't spent blindly. Moreover, the volume of information in a DMP and its analytics capabilities provide insights for omnichannel promotion via marketing tools.

What is ESP

ESP (Email Service Provider) is a service designed for email marketing and other customer communications. This platform automates marketing by managing the customer database and sending emails.

The email service supports:

  • templates for emails;

  • sending emails to segments, including testing successful variations;

  • collecting addresses and information about open rates, clicks, spam reports, and more.

When and why to use a ESP

ESP platforms are user-friendly and serve the following purposes:

  • Simplify a marketer’s work by automating email campaigns. Thanks to templates, sending emails becomes quick and doesn’t require specialized skills. Set it up once, then monitor and adjust email campaigns.

  • Conduct effective marketing communications with customers. Email service platforms regularly remind customers about the brand, offering new products, promoting deals, and re-engaging inactive users. ESPs also include analytics tools to evaluate the effectiveness of email sequences.

  • Gather and organize an email database. ESPs integrate with other platforms (e.g., social media) for direct acquisition of addresses from advertising campaigns. The client base is segmented internally. Additionally, email lists can be easily imported from other sources.

What is CRM

CRM (Customer Relationship Management) is a system for managing relationships with users, gathering information at every stage of the customer journey. Based on this data, a customer profile or unified record is created. Essentially, it's an omnichannel platform that stores the history of deals, customer calls, support inquiries, and more. It unifies and closely aligns marketing and sales efforts.

CRM systems in business vary based on the areas they serve: some are marketing-oriented, others handle sales department operations, there are industry-specific ones tailored for particular business sectors. Additionally, there are platforms that combine different functionalities.

When and why to use a CRM

CRM is used for:

  • Tracking customer actions at each stage of the sales funnel. All interactions are recorded and analyzed, allowing you to identify reasons for successful or unsuccessful paths to conversion.

  • Automated collection of customer data. CRM eliminates manual actions and spreadsheets; information typically enters the system through integrations and established automation processes. This speeds up work and reduces the risk of errors and duplicates. Data collection results in personalization.

  • Efficient customer engagement. CRM implements marketing and sales automation through reminders based on gathered data. The platform suggests when to call or send an email to engage with customers. This supports continuous communication and prompt issue resolution, crucial for fostering loyalty and increasing sales.

What is ERP

ERP (Enterprise Resource Planning) is a platform that automates internal business processes and consolidates them in one place. It encompasses manufacturing, financial modules, integrates reporting, personnel management data, procurement, supply chains, among others.

An advanced ERP system can even synchronize with external partner networks. Enterprise resource planning is applied across various industries with specialized solutions.

When and why to use ERP

  • Increase the speed and productivity of operations. Processes are automated, freeing employees from routine tasks, providing time for strategic issues, reducing overload.

  • Access real-time information at any given moment. ERP serves as a system for managing customer data, employees, and departments, allowing quick and easy access to generate the required report rather than gathering information from scattered sources.

  • Enhance business transparency. When business processes are displayed in a single system, identifying operational failures and analyzing difficulties becomes easier. It serves as another control tool and enables swift responses to changes.

What is CDP and what are its advantages over DMP, ESP, CRM, ERP

CDP (Customer Data Platform) is a system that gathers data from various channels for organization and unification. The software also creates a unified customer profile that contains contact information and details about their actions and orders.

CXDP (Customer Experience Data Platform) is an advanced version of CDP that retrieves information regarding user interactions from external sources. In CXDP, this functionality is implemented in a separate block, planning customer communications based on data.

When and why to use CDP

CDP platform is a tool to:

  • Gather all customer data. Personal information and behavior details across social media, websites, messenger apps, all linked to the CDP, accumulate within the customer profile, creating a comprehensive customer portrait.

Customer digital profileCustomer digital profile within Altcraft Platform

  • Manage communication channels in a single real-time window. Through CDP, automation in internet marketing is achieved, enabling omni-channel communication. Email delivery systems, push notifications, SMS, and messaging apps are connected to a single platform, streamlined for marketers.

Automation scenarioAutomation scenario within Altcraft Platform

  • Personalize offerings. Data volume and structuring serve as the foundation for detailed audience segmentation. Automated marketing becomes a data-driven approach: companies know what and when to offer a customer based on their order history, actions, and inquiries.

Audience segmentationAudience segmentation in Altcraft Platform

  • Analyze outcomes and build effective marketing strategies. CDP platforms offer extensive analytical functionalities to understand campaign responses, traffic sources, goal achievements, hindrances, and more, aiding marketers in refining their strategies.

Report in Altcraft PlatformReport on Email in Altcraft Platform

  • Protect customer data. With increasing system breaches and customer data leaks, ensuring the security of stored data is critical. On-Premises CDP platforms are embedded within the business framework, making it nearly impossible to access confidential information, thus enhancing data security.

Advantages of CDP over other systems

Using CDP with the Altcraft Platform

The functionality of the CDP platform within the Altcraft Platform performs marketing and other tasks for companies: accelerating ad campaign launches, increasing sales, transitioning to omnichannel operations, and more. Let's explore some examples of positive impacts after implementing the system.

Increasing an insurance company's profit

The AlfaStrakhovanie Group increased its profit by 714% over four years thanks to the Altcraft Platform. The marketing automation platform integrated 15 communication channels for the company's CRM marketing initiatives. In the first year, the company's revenue grew by 42%, and by 2022, three years later, it increased by 98%.

CDP enhanced AlfaStrakhovanie Group’s customer communications, addressing challenges in audience retention, boosting engagement and repeat sales, and attracting new users.

Cuva travel voucher service increased sales by 7%

Cuva, a company selling vouchers for stays in Russian hotels (date undisclosed), chose the Altcraft Platform to address their marketing needs. Through automated communication scenarios (welcome emails, upsells, activation, and omnichannel campaigns), integrating Telegram, they managed to personalize offers. In 2022, their sales increased from 8% to 15%. The marketing automation system showed its best results in email campaigns, contributing to 54% of "Black Friday" sales.

Online cinema accelerated campaign deployment

The PREMIER service integrated the Altcraft Platform's CDP to consolidate communication channels and ensure secure customer data storage. Configuring automated scenarios, broadcasts, trigger campaigns, and personalization increased Open Rates by 1.5 times and Click Rates by 2 times.

Managing all channels became easy and quick: marketers launched campaigns within one hour instead of the previous three-hour timeframe.


DMP, ESP, CRM, ERP, and CDP systems play vital roles in managing data and enhancing a company's operations, each with its unique specifics.

DMP gathers first, second, and third-party data to shape marketing propositions. ESP is responsible for compiling databases and conducting email outreach. CRM encompasses the entire customer journey from sales contact to conversion. ERP serves as a tool for managing a company's internal resources.

CDP consolidates, structures, and unifies customer data into a unified profile, managing communication tools with the audience. This platform enhances marketing efficiency, automates processes, and personalizes offerings.







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Author: Ksenia Yugova






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