Posidex Technologies

Customer Data Platform vs Master Data Management

MDM vs CDP: Major differences and benefits

Customer Data Platforms and Master Data Management (cdp and mdm) are two different concepts with similar names. Both customer data platforms and master data management (cdp and mdm) are in the business of collecting, storing, analysing and exposing the data to the business users who can use it to make better business decisions. With a rising number of businesses looking to implement a Customer Data Platform, it is important to understand the difference (mdm vs cdp) between the two. This blog will look at what they are and what makes them different.
The major challenge faced by Enterprises in a data-rich environment is managing and getting reliable customer data that drives accurate business decisions. A common enterprise mdm solutions platform is very important to help in organising and managing customer data that flows in from multi-channels at boundless speed and unlimited variety. Enterprise Customer Data Platforms and Enterprise Mdm solutions are two such platforms on which enterprises can rely on for storing, transforming, and unifying customer data to make computations easier and processes more agile.


Customer Master data management (MDM) is a process designed to manage and transform organisation-wide data. On the other hand, Customer Data Platform (CDP) is a product that specifically improves customization of customer data. Customer Data Platforms and Master Data Management (CDP and MDM) both work together to deliver solutions such as single view of the customer, screening of customer data etc.

What is an MDM solution VS CDP Solution?

MDM solutions enable technology to work in alignment with business to ensure uniformity, accuracy, stewardship, semantic consistency, and accountability in all the shared enterprise master data assets. Thus, it includes the processes, approaches, and technologies that are used to manage important shared data within an organisation. CDP solutions can be built exclusively for manipulating and managing customer data. These solutions are packaged software built for different business use cases, such as marketing, analytics, customer service and delight, etc. Since CDP is a prebuilt and pre-configured system, it does not require high level technical skills for business users to use data, reducing time, cost and expertise resources in enterprises.
mdm vs cdp

Main aim of MDM Vs CDP

The main aim of MDM is to deliver a ‘master record’ that is accurate, reliable, and consistent across all pooled business data, thus, allowing different departments within the enterprise to work with appropriate data that meets their individual requirements from among the volumes of shared data.
The main aim of the CDP is to deliver a coherent, trustworthy, and persistent ‘Golden Record’ from different data sources to empower the marketing and operations teams to work with business data without the need of IT team or engineers.

Accessibility of MDM Vs CDP

There is only one true Master Data for an Enterprise that is stored in MDM. The repository can be tricky to manage by other departments and therefore, must be managed by enterprise MDM solutions engineers only.
Inversely, data stored in the CDP can be used by other systems for analysis and to manage customer interactions.

Data view of MDM Vs CDP

MDM is a heterogeneous pooled data from different touchpoints such as department, channel, or aspect of an organisation to be represented in one place and create a ‘single source of truth.’ Though it may represent the address of details of the company data pipeline, it might not necessarily give a complete view of each customer.
CDP on the other hand can give a comprehensive view of each customer creating a ‘single customer view’ of the customer linking the relationships and information from multiple systems.

Applications in MDM Vs CDP

MDM facilitates collection, storing and sharing of enterprise data. It may not be ideal for other transformations as the main purpose of MDM is to provide a single source of truth for the data.
CDP deals with customer data, and allows collecting, cleansing, de-duplicating, storing, matching, and screening of data according to business needs.

Benefits of MDM Vs CDP

1. Global: One true global, centralised data for consistency in applications.

2. MDM is an agile platform that can be easily expandable to new channels to get high-quality information from a variety of sources.

3. MDM enables delivery of a trusted version of data that supports business initiatives.

4. MDM data is agnostic to specific business application landscape and is applicable to any adopted implementations by the end-user organisations.

5. A golden record system may support any solution that can be customised across industries to address specific challenges.
1. CDP can handle all kinds of data that can be transformed into various formats.

2. CDP gives real-time accessibility to customer data that can be easily and quickly accessed with powerful ML and AI driven technologies for immediate powerful implementations.

3. CDP is cross-functional and flexible to access data and tools across departments within an organisation.

4. CDP enables comprehensive customer view, relationship connects, and seamless integrations of data.

5. CDP’s single view of customer data combined with technology can also be highly scalable to handle billions of consumer records per day.

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