Master Data Management (MDM) and Customer Data Platforms (CDPs) are tools that organizations
use to manage and leverage their data effectively. But what are these platforms exactly,
and how do they differ? Let's break it down in simple terms.
Customer data is crucial for decision-making, so ensuring its accuracy is paramount. As cookies gradually disappear, first-party data takes on greater significance for marketers. Understanding the value of owned customer data and maintaining a 360-degree view of each customer has become vital for developing effective outreach strategies. Meanwhile, data management and IT departments stress the importance of data quality and customer identification, particularly in light of regulatory requirements.
What unites both marketers and IT departments? They utilize data platform technology to gain insights into customer behavior, streamline operations, and achieve their goals. Marketers typically prefer a Customer Data Platform (CDP), while data management and IT departments lean toward Master Data Management (MDM).
What are the differences between CDP and MDM platforms, and do you need both? Below, we provide two practical examples to clarify these distinctions.
You don't have to pick just one! This leaflet explores how integrating a modern Customer Data Platform (CDP) like Invenna with Master Data Management (MDM) can enhance your organization’s data strategy.
A Customer Data Platform (CDP) enables the efficient capture, analysis, and utilization of customer data. It focuses on quickly applying this data in various contexts, such as marketing campaigns, analysis, reporting, and dashboards.
For example, imagine you’re planning a skiing trip. You purchase temporary coverage from your travel insurance provider, who retains this information. A year later, they send you an email reminder about your winter sports coverage. If you decide to stay home, you may not respond. Then, as summer arrives, they remind you about upgrading to worldwide coverage. By tracking your behavior and preferences, the insurer tailors their offers through a CDP, ensuring relevance and increasing engagement.
Definitions of a Customer Data Platform can vary, but we see it as a consolidated space that combines all your customer data into a unique profile. With this profile, businesses can track where a customer is in their journey, providing marketers with valuable insights to create even more targeted and personalized marketing campaigns.
Are you interested in learning more about CDPs? In this article, we explain in further detail what a CDP is.
Ready to maximize your customer value in just four simple steps? Our exclusive customer value guide will guide you through effective strategies to boost your returns.
When an organization focuses on accurately identifying data and customers across all its processes, a Master Data Management (MDM) platform offers an effective solution. This is especially crucial when ensuring a customer’s identity is accurate, as errors could have significant consequences. Organizations like the Dutch Tax Administration and the National Police rely on MDM systems daily. In this article, we delve into the concept of Master Data Management in detail.
Consider a practical example: Suppose your car won’t start. With a busy family life, you begin shopping for used cars online. After visiting a dealer's website, you schedule an appointment for a test drive. To finalize the lease, the dealer connects with the BKR Foundation to verify that the lease arrangement is financially sound. This quick process is possible due to MDM principles that ensure accurate data matching and verification.
Are you interested in learning how the BKR Foundation conducts over 10 million credit checks in just 0.2 seconds each year? Be sure to check out their case study.
What truly sets these platforms apart is their focus. Marketers utilize a Customer Data Platform (CDP) to create more personalized and impactful customer interactions. Their goal is to enhance customer engagement, loyalty, and conversion rates. In contrast, data management teams and IT departments employ Master Data Management (MDM) to ensure data accuracy. Their objective is to provide a consistent data stream that can be used across all business processes.
CDP: provide a comprehensive view of customers, enabling targeted marketing; however, they may require significant initial setup and ongoing maintenance.
MDM: improve data accuracy and consistency across systems but can be challenging to implement and require ongoing efforts to keep data up to date.
| Feature | Customer Data Platform (CDP) | Master Data Management (MDM) |
Primary Focus | Marketing and customer insights | Ensuring data consistency and accuracy organization-wide |
User Base | Marketers and business analysts | IT and data management teams |
Data Types | Customer behavior, interactions, and demographics | Core entities (customers, products) |
Main Objective | Enhancing marketing strategies and customer relationships | Improving operational efficiency and data quality |
Implementation Complexity | Typically, straightforward depending on business needs | Often more complex due to integration requirements |
Customer Data Platforms (CDPs) and Master Data Management (MDM) aim to simplify data management. However, we are noticing an increasing convergence of these technologies. CDPs that incorporate MDM principles and technologies are becoming more prevalent. At Invenna, we strive to stay ahead of the curve, so we merged with Human Inference. Since the merger, our users have benefited from MDM functionalities integrated within the Invenna CDP.
Learn how our platform can enhance your data strategy and tackle your data challenges with confidence.
A Customer Data Platform (CDP) collects, integrates, and analyzes customer data from multiple sources, creating a comprehensive 360-degree view of your customers. This enables you to gain deeper insights and enhance their experience, ultimately maximizing your return on investment.
Contact us for a brief introductory discussion on how to harness the power of your customer data. No obligations, just valuable insights!
Unlock the potential of your customer data with our customer value guide! Discover a practical four-step plan to enhance your services and boost customer loyalty.
Leave your details to download your free customer value guide now!
With our data platform technology we are going above and beyond: you organize thousands of (marketing) actions, create analyses, complete missing information and control and monitor all customer data. And these are merely examples.
Discover how we make your organization data-driven and what you achieve with the unique customer view. Tell us more about yourself and we'll contact you soon.
The Invenna platforms are suited for small and large companies. For marketing, analytics, compliance and IT. And for diverse industries such as autmotive and charity.
Because of the numerous options and organization's individual needs and wishes, we'd like to show you what you can do and achieve with our platforms. Leave your details and we'll contact you to schedule a (digital) demo. Free and without strings attached.
In the brochure you read what the Invenna Customer Data Platform offers you and the benefits of working with a unique customer view. And to get you started, we also share a few use cases.
Leave your details and we'll send you the brochure via email.
Whether you’re looking to improve your operational processes or gain a quicker response to marketing and sales activities: the Customer Data Platform helps to achieve goals.
Get in touch with us and we’ll tell you more about merging all your customer data into a unique customer view. And equally important: what you achieve with the platform.
In the brochure you read what the Invenna Customer Data Platform offers you and the benefits of working with a unique customer view. And to get you started, we also share a few use cases.
Leave your details and we'll send you the brochure via email.
The possibilities of the Invenna Customer Data Platform B2C are limitless. Because of organization's individual needs and wishes, we'd like to show you our platform and its features so you get an idea of how it helps to achieve your goals.
Leave your details and we'll contact you to schedule a (digital) demo. Free and without strings attached.
In the brochure you read what the Invenna Customer Data Platform offers you and the benefits of working with a unique customer view. And to get you started, we also share a few use cases.
Leave your details and we'll send you the brochure via email.
Whether you’re looking to improve your operational processes or gain a quicker response to marketing and sales activities: the Customer Data Platform for B2B helps to achieve goals.
Get in touch with us and we’ll tell you more about merging all your customer data into the unique customer view and how you can benefit from the platform.
In the brochure you read what the Invenna Customer Data Platform offers you and the benefits of working with a unique customer view. And to get you started, we also share a few use cases.
Leave your details and we'll send you the brochure via email.
The possibilities of the Invenna Customer Data Platform B2B are limitless. Because of organization's individual needs and wishes, we'd like to show you our platform and its features so you get an idea of how it helps to achieve your goals.
Leave your details and we'll contact you to schedule a (digital) demo. Free and without strings attached.
In the brochure you read what the Invenna KYC platform offers you and the benefits of working with a unique and complete customer view. And for inspiration, we also share extra content.
Leave your details and we'll send you the brochure via email.
Whether you’re looking to improve your operational processes or respond more swiftly to potential risks: the KYC platform helps to achieve goals.
Get in touch with us and we’ll tell you more about merging all your customer and transaction data into the unique customer view.
The possibilities of the Invenna KYC platform are limitless. Because of organization's individual needs and wishes, we'd like to show you our platform and its features so you get an idea of how it helps to achieve your goals.
Leave your details and we'll contact you to schedule a (digital) demo. Free and without strings attached.
In the brochure you read what the Invenna KYC platform offers you and the benefits of working with a unique and complete customer view. And for inspiration, we also share extra content.
Leave your details and we'll send you the brochure via email.
We work with and for over 75 of The Netherlands’s finest brands every day. From Mediahuis and Nissan to the Tax and Customs Administration and Dutch police. So we've grown considerably, but still don't shy away from any customer data challenge.
Would you like to know more about is? Or are you wondering how we make your organization more data-driven? Tell us more about yourself and we'll contact you soon.