Marketers and customers both agree that personalisation with a brand leads to higher engagement, a better experience and ultimately, improved sales.
Brands that can talk to their customers as an individual will ultimately win in a crowded market place.
Until recently, accomplishing this concept was easier said than done. Technology was never quite there and while we could accomplish some of this across individual channels (email being a stand-out), building scale was always a challenge.
Combine this challenge with the exponential rise in data and it quickly seems as though things are moving too fast and getting too confusing. But there is an answer.
DMPs: Helping make sense of data
Step forward the DMP. Data Management Platforms are fast becoming the tech of choice for marketers who want to want to develop 1-to-1 marketing with their current and new customers.
While a DMP is never the whole answer, it’s a very good starting point to addressing personalisation of your customer’s path to purchase.
But how does it do this and how do you know if you need one? To answer these questions let’s take a slightly deeper look at what a DMP does.
How DMPs work
Author’s note: I won’t go into the different types of data and where to find them in this article – for further reading, this guide from our partner Oracle is an excellent place to start.
The DMP’s main goal is to bring together many different types of data into one platform and provide a single customer view. To create the singular view, we need a unique ID for each person.
Each customer that interacts with your brand generates lots of different data points. A DMP combines these data points under a universal ID, which then acts as a cross-channel personal identifier.
Once we have this ID we now have the ability to see customers across the entire digital ecosystem. The great advantage of this is that we’re able to analyse customers as they interact with your brand and media channel touchpoints to gain deeper insight into who they are and how they engage with you.
Using these insights we can build rich profiles and in turn personalise content and advertising to suit their preferences.
The benefit? Unified data makes our marketing efforts more efficient and targeted, resulting in increased engagement and ROI.
Example use case: CRM-powered advertising
Let’s look at an example of how a DMP might work in a real-life situation.
From examining your CRM database, you may notice that 80% of your sales are coming from 20% of your customers. You want to target more of these converters, but what makes them so special and why do they drive so many sales?
Using a DMP, we can ingest that data and combine it with other sources that we have on these customers, such as website interaction and other offline sources (age, gender and location) to build the profiles.
The DMP helps us to quickly analyse the profiles and generate look-a-like audiences (each with a unique identifier). Thanks to unique ID we can tailor the message through media and content to speak to these potential customers as individuals.
So if we want to target them in a social channel during the awareness phase but then switch to a more pointed message through a targeted mobile ad driving them through the purchase funnel, we can.
Which DMP is right for me?
As with most technology applications the devil is in the detail. And not all DMPs are the same. Choosing the appropriate one depends on your requirements and strategy. Otherwise you’re paying for a lot of tech that isn’t necessarily helping you achieve your goals.
If you’re curious about what a DMP can do for you and your goals, speak to your agency lead or email me directly and we can explore this topic further.