What are the differences between a CDP and DXP?

Although we can’t pick through all of them in one article alone, we’ve chosen two technologies that encompass the digital experience to compare and contrast.  They are Customer Data Platforms (CDP) and Digital Experience Platforms (DXP).  

CDPs and DXPs  

These are both technologies that manage and analyse customer data, but they serve different purposes and are used in different ways. 

For instance, CDPs collect, integrate, and manage customer data from various sources such as web analytics, CRM, and marketing automation systems.  

Their function is to create a single, unified view of the customer, or a 360 view.  This allows businesses to better understand and target their audience and build customer loyalty. 

DXPs on the other hand, helps businesses create and manage websites, social media, mobile apps, and other touchpoints that make up a digital experience.  

A Digital Experience Platform like Sitecore XP typically includes features like content management and marketing automation. Its function is to create personalised, seamless and engaging customer experiences on an omnichannel level. 

Sitecore’s Customer Data Platform, which is part of the Composable DXP, delivers customer intelligence for the digital ecosystem. It improves insights and segmentation for effective targeting and personalisation. 

While both CDPs and DXPs manage and analyse customer data, the key difference is that CDPs are customer focused while DXPs are experienced focused.  

CDP and DXP similarities 

• Both CDPs and DXPs help businesses manage and utilise customer data

• They can integrate with other systems and platforms to collect and analyse customer data   

CDP and DXP differences 

• CDPs collect, store, and manage customer data, whereas DXPs create and deliver relevant digital experiences throughout the customer journey

• CDPs typically collect data from various sources and make it available for use across the business, while DXPs use that data to deliver personalised digital content

• CDPs are more of a "back-end" system, while DXPs are a "front-end" system 

Benefits of CDPs and DXPs working together 

Working together, these two powerful technologies can help businesses improve customer engagement and overall performance.  

In tandem, they’re comprehensive platforms for managing and leveraging customer data and optimising customer journeys with testing and personalisation.  

One of the main benefits of using a CDP with a DXP is the ability to create a single source of truth of customer data and use it to tailor the perfect customer experience. This is especially relevant today as there’s so much data around.  

This synergy allows businesses to have accurate, real-time information that can be used to enhance content delivery.  

For example, businesses can use data from a CDP to identify customer segments that are most likely to convert, and then use a DXP to create tailored experiences for those segments.  

Using a CDP with a DXP can help businesses improve their overall performance by providing them with a more complete view of their target audience. This allows for a better understanding of customers, which can help business owners make better informed decisions about everything from product development to marketing campaigns.  

Plus, data collected by a CDP can be used to track the effectiveness of customer experiences. These valuable insights enable data-driven adjustments to improve the overall digital performance. And with AI being used in CDPs and DXPs, even better experiences can be delivered. This is what customers now expect. 

Working with Codehouse 

At Codehouse, we have an experienced development team who can get you up and running with your CDP and DXP. So whether you're currently using Sitecore, or it's on your radar for a future transformation project, get in touch.