“Data is the new oil. It’s valuable, but if unrefined it cannot really be used. It has to be changed into gas, plastic, chemicals, etc., to create a valuable entity that drives profitable activity; so, must data be broken down, analyzed for it to have value.”
Clive Humby penned down this phrase in 2006, which stirred the industry. However, back in 2017, when the Economist published another story in favor of the words. They titled the story, "The world's most valuable resource is no longer oil, but data." Since then, "Data is the new oil" has become a popular refrain for all.
This metaphor implies every aspect of the industry in recent times. Data is vital and plays a crucial role in every business. For instance, information is highly prioritized in the retail sector and considered bliss for crafting any strategy. At present, the users are generating tons of meaningful data through offline and online purchases. In addition, they are providing loyalty shopper data extracted from social media platforms.
This significant growth of data is accredited to the proliferation of the internet as well as smart devices. Statista confirms that 65% of all eCommerce sessions are recorded from smartphones. Customer data has always been an imperative asset for retail brands. Therefore, now businesses have to set up a foundation that is based on the accumulation of data.
However, due to the fast-paced technological world, access to data is not enough. Data acquired must be implemented meticulously across all possible existing and possible channels. Due to structured data, modern businesses can unleash optimum opportunity via robust technologies, such as Augmented Reality (AR), Virtual Personal Assistants (VPA), the Internet of Things (IoT), and Chatbots.
These technologies can assist retail businesses in staying ahead of the competition. Today, with the Data Management Platform (DMP), companies can collect data conveniently. DMP promises the best and personalized experience for retail consumers. But before we proceed to understand how DMP can assist retail brands, let's know what indeed it is!
The Basics of a Data Management Platform
The Data Management Platform (DMP) is a unifying and combining platform. It collects, consolidates, and activates first, second, and third-party data. The data is retrieved from online and offline sources, smartphones, and beyond.
According to Adobe data management platform fuses the touchpoints and the traits that define a customer. It helps in revealing the journey of consumers with the brand. DMP uses intelligence to build unique audience profiles. As a result, it ensures accurate targeting with an enhanced personalized experience.
DMP is the backbone of data-driven marketing. It allows businesses to gain exclusive insights into their consumers. With the data management platform, marketers make sense of the data acquired. It essentially works as a centralized unit that collects different kinds of data. Later it turns it into actionable insights that benefit the business.
Using the DMP model, marketers drive advanced marketing tactics and plans. It makes sure the brands' message reaches the target audience with efficacy. It also resolves the inadequacy of digital marketing by managing third-party data into aspects that builds customers.
Crucial Features of Data Management Platform
DMP provides three fundamental features that include:
- Data-Collection Approaches
- Data-Sources Supported
- Data-Integration Approaches
- Data Identity Management
- Activation Channels Supported
- Ad Servers
- Other Marketing Channels
Types of Data Collected by Data Management Platform
Following are the types of data that the DMP collects:
- Desktop and mobile user data
- Social platforms usage or trends
- Offline, TV, and radio advertising data
- Web analytics
- Ad networks
- Video consumption
- CRM systems
- Publisher ad management
- Credit card purchase statistics
- Point of Sale (PoS)
Benefits of Data Management Platform
We are going to discuss the top four benefits of a data management platform in the retail sector. These merits allow retail businesses to unlock success.
1. Segmentation of the Audience
With a data management platform, retailers can categorize their customers. This categorization is based on niche segmentation. However, it offers vital information about the consumers based on various factors, including demographics, gender, interests, spending history, and desires.
As per the study, 77% of the email marketing ROI stems from segmentation, targeting, and triggered campaigns. However, 42% of marketers agree they do not segment their market. And 4% claims they segment their market based on multiple data variations.
Retailers can lead the way towards successful campaigns by segmenting the audience into groups. DMP assists the brands in understanding the customers through segmentation. This allows marketers to identify the most promising and profit-yielding segment.
2. Ensures Accumulated Cross-Channel Audience Insights
21% of the marketers agree they don’t understand the basics of running the campaigns. This was revealed while identifying the barriers to implementing a cross-channel marketing model. Retailers are not able to unlock the full potential of their businesses due to this reason. In addition, 45% of the consumers believe that retailers cannot effectively offer a cross-channel experience.
However, with the help of DMP, businesses can do wonders creatively. They can collect and combine the data acquired via offline and online sources. Via CRM, newsletter, POS, signups, etc., brands can boost their conversion ratio.
Data management platform assists businesses in locating their audiences. It allows them to have a personalized touchpoint with every consumer. With DMP, you can retarget your existing customers who visited your website. You can also target the lookalike audience group by analyzing the data obtained from current customers.
3. Unique Content Personalization
Today, personalization has become the foundation of digital marketing. It has become a vital key towards success and triumph. As per Segment, 71% of the consumers feel infuriated when the shopping experience is impersonal. Whereas, Accenture survey reveals that 91% of the customers appreciate brands that provide relevant offers and recommendations.
Did you know, in 2019, 72% of the consumers claimed they only engage with brands that have customized messages as per their interest?
With a data management platform, businesses can offer tailored content with customized messages. It can increase the interest level of the customers and enhance the engagement ratio. Creatively tailored content and fascinating functionality boost conversion rate.
4. Omnichannel Messaging
The usage of the internet has spread far and wide, allowing multiple devices to get connected instantly. The users are surfing the internet using various devices on various platforms. The data is separated, found on numerous platforms, proving itself as a hurdle for the retailers.
In such a time of need, data management platforms ascertain themselves as valuable assets. Regardless of the platform, DMP allows retailers to collect all sorts of information conveniently. Either it’s a laptop or a mobile device or an email or social media site. Data management platforms help the retailers in syncing all the data as a unified point of contact.
If the retailers are controlling the data Today, they will ultimately secure their future tomorrow. With actionable data insights, retail brands can deliver highly personalized content to the right customer. Relevant content helps a brand in unprecedented time and maintains the edge for the business.
Data management platforms can assist retailers in collecting unique data for their business survival. With well-analyzed structured data, retailers can tap into the market filled with hidden opportunities. The DMP foundation allows retail brands to create seamless cross-channel campaigns that nourish loyalty. It can also increase the customer acquisition and retention ratio.
Getting insights on your customers and building relationships with them requires you to invest in customer data management platforms. Salesforce is one of the leading customer management platforms to help you achieve your business’s digital transformation objectives. Get help Today!