Gartner reports that, “Customer data platforms and master data management solutions both enable ‘360-degree’ customer insights, but are optimized for different uses. Data and analytics leaders must evaluate the expected use cases and desired business outcomes of both.”
“MDM solutions, which are approaching the Slope of Enlightenment in ‘Hype Cycle for Data Management,’ are more technologically mature than CDPs, and have well-documented capabilities and benefits. Whereas CDPs support marketing-centric use cases, MDM solutions use superior data integration capabilities to create single customer views using customer data from a wider variety of internal systems, including ERP, manufacturing and fulfillment systems (among many others). The integrations are often ‘native,’ an MDM solution being provided by the same vendor as the downstream operational systems.”
Table of Contents
|CDPs and MDM Solutions Compared||3|
|Define Users’ C360 Requirements and Use Cases||6|
|Take an Outcome-Centric Approach to Defining Requirements||7|
|When to Select a CDP or and MDM Solution – or Both||8|
|Gartner Recommended Reading||10|
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Figure 2 compares the features of CDPs and MDM solutions.
“Gartner’s Definition of a 360-Degree Customer (C360) View A 360-degree view of customers is made possible by a consolidated, integrated and exhaustive set of data relevant to a company’s relationship with its customers. That dataset may need to include relevant information about customers’ profiles, transactions, preferences and relationships with other suppliers. Companies typically seek to build such a view to improve, more effectively or efficiently, their CX, retention, wallet share or sales.” - Gartner, Choose Between Customer Data Platforms and MDM Solutions for 360-Degree Customer Insights, Malcolm Hawker, Simon Walker, Sally Parker, 30 January 2020
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