SAP CDP vs. CDC: Unraveling the Functionalities and Benefits of Each Platform

• December 28, 2023

In an era where data is the new gold, businesses are constantly looking for robust platforms that manage customer information and transform it into meaningful insights. SAP’s Customer Data Platform (CDP) and Customer Data Cloud (CDC) have emerged as frontrunners in this race, promising to redefine how companies interact with their customer data. But what sets these two platforms apart? How do they cater to the unique needs of businesses in today’s data-driven landscape? With organizations estimating the average cost of poor data quality at a staggering $12.8 million per year, as per a survey by research firm Gartner, the importance of choosing the right data management solution becomes paramount. 

In this article, we delve into the intricate functionalities and benefits of SAP CDP and CDC, guiding you through the maze of data management solutions and revealing how each platform can be a game-changer for your business.

What is the SAP Customer Data Platform(CDP)?

At the heart of modern customer data management is SAP’s Customer Data Platform (CDP), a solution designed for the seamless consolidation and utilization of customer interactions. By integrating diverse data from CRM systems like SAP CX, marketing platforms, and ERP systems, SAP CDP crafts comprehensive customer profiles. This integration provides a 360° view of your customers, enabling you to create personalized interactions and giving you deeper insights into your customer behaviors and preferences​​.

Following the exploration of SAP CDP, we turn to its counterpart, the SAP Customer Data Cloud (CDC).

What is the SAP Customer Data Cloud(CDC)?

SAP CDC, a key component of the SAP Customer Experience portfolio, is a tool designed to manage your customer data with a focus on transparency and control over personal data, elements crucial in today’s trust and privacy-centric digital economy. SAP CDC helps you build trust, which is essential for providing personalized services and improving customer experiences. One of its standout features is progressive profiling, a technique that enriches user profiles throughout their journey with you rather than just at specific points. By using the CDC Flow Builder, you can collect data effectively at various stages, enhancing user experience and increasing conversion rates by asking the right questions at the right time. 

With its comprehensive features and progressive profiling strategy, SAP CDC serves as an essential tool for business leaders looking to manage customer data effectively and build lasting relationships based on trust and personalized experiences.

Major Differences in Features and Functionality: SAP CDP vs. CDC

As you strategize on leveraging customer data effectively, understanding the unique roles and capabilities of SAP’s Customer Data Platform (CDP) and Customer Data Cloud (CDC) becomes vital. These platforms, while handling customer data, cater to different aspects of your business needs.

SAP Customer Data Platform (CDP)

Purpose and Functionality

SAP CDP primarily focuses on consolidating your customer data from various sources, including CDC, CRM, and others, to create a comprehensive customer profile. It’s geared towards back-end operations, largely invisible to the end consumer.

Key Features

• Real-Time Customer Interactions- SAP CDP empowers you to interact with customers in real-time, providing dynamic and relevant engagement.
• Activation Layer- Acting as an activation layer, SAP CDP integrates customer data across multiple channels, enhancing your customer understanding and personalization efforts.
• Cloud Solution- Offers flexibility as a cloud solution and can be combined with both SAP and non-SAP Customer Experience solutions.
• Technology Base- Shares a technology stack with CDC but functions as a distinct and independent tool​​.

Use Cases

Ideal for your business if you are seeking to understand and activate your customers across multiple channels, ensuring personalized and trusted engagements. SAP CDP enriches the identified customer profile using consents and preferences, creating a harmonized customer master data set​​.

SAP Customer Data Cloud (CDC)

Purpose and Functionality

CDC is tailored for managing your customer identities and recording their consent, primarily in front-office applications. It assists you in handling tasks like registration, authentication, and preference management, offering a direct interface for your end-users.

Key Features

• Security Dashboard- CDC’s Security Dashboard offers a real-time view of your site’s security status. This tool is crucial for identifying and addressing security issues swiftly, ensuring the integrity of customer data is maintained at all times​​.
• Strong Password Policies- Implementing strong password policies is a foundational feature of CDC. These policies ensure that customer accounts are protected from unauthorized access, crucial in an era where data breaches are increasingly common. CDC’s approach includes the use of complex passwords and encourages best practices like two-factor authentication​​.
• Risk-Based Authentication (RBA)- RBA is a dynamic feature of CDC that evaluates the risk associated with login attempts. RBA enhances security by considering various factors and circumstances surrounding each login attempt, ensuring that access to sensitive data is granted only when it’s safe to do so​​.
• Account Takeover Protection (ATO)- ATO in CDC uses AI/ML to protect against account takeover attacks. It adds an additional layer of security by evaluating risk scores from different sources and applying the highest score for decision-making.

Use Cases

SAP CDC is particularly useful for businesses focusing on front-end customer engagement, ensuring secure and transparent user experiences. CDC allows you to manage customer registrations with various authentication methods and oversees consent across different applications.

Interplay and Integration of SAP CDP and CDC

• Data Source Integration- CDC can act as a data source for CDP, providing identity and consent data that CDP then uses to enrich customer profiles.
• Separate but Synergistic- Although based on the same technology, CDP and CDC can function independently. However, using them in tandem can lead to a more comprehensive understanding and customer engagement.
• Combination with SAP CX Portfolio- Both CDP and CDC can be combined with other SAP CX products, offering extended functionalities and integrations​​.

While SAP CDP and CDC are built on similar technology foundations, they serve distinct purposes: CDP for backend data consolidation and activation and CDC for front-end identity and consent management. Their integration can lead to a holistic approach to customer data management, enhancing both the business’s understanding of its customers and the customers’ experiences.

Here’s How Spadoom Can Help You With Your Data Management Requirements

If you’re looking to leverage SAP solutions like the Customer Data Cloud (CDC) and Customer Data Platform (CDP), Spadoom is your go-to partner. With our in-depth expertise and comprehensive range of services, we’re well-equipped to guide and support your business’s data management journey.

• • Integrating Advanced Technology with Business Goals- Our SAP implementation expertise ensures seamless management of your customer data using SAP CDC and CDP, enhancing customer experiences and revenue growth.
  • Tailored Digital Transformation- We offer digital and custom software solutions to transform your infrastructure into cloud-based environments. Embracing SAP CDC and CDP with our help maximizes cloud computing benefits, boosting your business’s operational efficiency and collaboration.

• Operational and Process Excellence- Beyond software development, we help you manage your existing platforms to overcome challenges and seize growth opportunities. We provide support in areas such as web operations, application support, and operational maintenance, ensuring your SAP implementations run smoothly and efficiently​​.
• Strategic Digital Partnership- With Spadoom, you get more than just technical expertise, you gain a strategic digital partner. Our approach combines business acumen with cutting-edge technology to elevate your brand. Through digital strategy consulting and SAP solutions implementations, we set a strong foundation for your future growth, ensuring your business stands out in the industry​​.

Partnering with Spadoom for your SAP CDC and CDP implementation means getting a comprehensive solution that covers everything from technology integration to operational excellence. Our team is committed to enabling innovation, providing tech-driven solutions, and empowering your decision-making processes, ensuring that your business leverages SAP solutions to their fullest potential.

Harnessing SAP CDP and CDC with Spadoom

In this digital era, where data is akin to gold, the choice of the right data management solution is critical. SAP CDP and CDC have emerged as key players, each offering unique functionalities to enhance customer data management. SAP CDP excels in back-end data consolidation and activation, while SAP CDC shines in front-end identity and consent management. Their synergy leads to a comprehensive approach to customer data management.

With Spadoom, a SAP Gold Partner, by your side, you gain a strategic ally that empowers you to utilize SAP CDP and CDC to their fullest potential, setting a robust foundation for your business’s future growth and success in the digital landscape. Let’s transform your data management strategy together and set a new standard in customer experience!