Many marketers consider DMP to be just another marketing tool used for audience targeting. Agreed! Audience targeting qualifies as a basic use case of a DMP, but the possibilities of a DMP as a marketing tool is limitless. Being a significant element of the data-driven marketing landscape, this sophisticated platform houses a multitude of capabilities and use cases. Owing to such possibilities, it becomes confusing and difficult for the marketers to execute upon a single and well-defined strategy. Since different teams focus on diverse platform features, outputs, and value propositions, which correspond to their objectives, it is important for the marketer to identify specific value stream (use case) before the whole team deep dives into its functioning.
Below mentioned are various value streams (use cases) which could be phased in accordance with a brand’s requirement and the category of business to help marketers derive maximum output out of a DMP.
Best Use Cases for Marketers
1. Unify Your Audience
Data management platform (DMP) is one centralized digital data warehouse that collects and integrates first, second, and third party data.
-First-party data–The most valuable data – Data collected from your own audience and customers from CRM, Web and Mobile, Offline sources, Subscriptions, and Newsletters, etc.
-Second-party data–Data that is initially collected in the form of first-party data, then handed on to another company through a partnership agreement. Ex: a sporting equipment website partnering to share data with a website that promotes sporting events
-Third-party data – Data collected from a range of different sources and sold to companies for audience targeting and analysis
DMP can collect unstructured audience data from almost any source (combining offline data with online, mobile, CRM, social, registration, and much more); further, this collective pool is leveraged in real-time for significantly improved targeting and channel personalization. Acting as a single access point to the data ecosystem, DMP helps the marketers build audiences to segment and learn more about who their most valued customers are.
2. App Downloads
So you run a successful e-commerce website and have created a mobile app with various functionalities adaptable to iOS and Android. You are attracting lots of customers every day on your website but are constantly thinking about increasing the number of app downloads.
With the help of a DMP, you can create following audiences:-
– customers using iOS who also visit the site on a desktop computer
– customers using Android who also visit the site on a desktop computer
Using these two customer sets, you can be more specific in targeting by creating banner ads and pop-ups fitted more accurately to the mobile users. Further, to match the preferences of the visitors, you can also create messages about your App in Google Play and Apple Play Store.
3. Decrease Cost Per Acquisition (CPA)
The prime marketing objective for any online education provider is to drive more inquiry form submissions on their website and affiliated sites. And to measure their success, CPA is used as the main metric. With the introduction of data activation function of a DMP, marketers can drive more submissions on their website and eventually lower their prospecting CPA by a significant margin.
-Identify the attributes of converters and non-converters and inform data-driven retargeting to drive more qualified traffic to the portal of inquiry forms
-Utilize Data Activation as the primary retargeting tool to increase conversion rates and actively influence purchase decisions
-Leverage DMP’s custom segmentation to use the advertiser’s first-party data and exclude current inquiry-form submitters from media messaging
-Find optimum creative placements, sizes, and frequencies and improve media performance. Identify the impact of cross-channel marketing and implement the most effective buying model for each vendor
4. Personalized Marketing
Banks and other financial institutions find themselves at the juncture of two considerable forces, i.e. rapidly evolving consumer behaviors, and a digital environment which drives out massive amounts of data.But while these institutions possess all the required customer data (demographics, transaction behavior, products purchased, etc), making use of this data in an efficient manner for personalized marketing still remains one big challenge.
A DMP can precisely solve this problem. Mentioned below are a few fascinating things a DMP can do to make a marketer’s job easier in the banking industry:-
-Advanced scorecards to assign relevant recommendations to the customer
Basis every customer’s transactions (value, product, frequency), a detailed scorecard can be generated.For example, let’s say a customer has bought products from the Amazon app three times in the last 20 days. Now that you know that this customer, a 32-year-old male (CRM data), is a regular user of the Amazon app, you can push your premium credit card or any loyalty product to this customer where he will avail reward points in addition to discounts when he interacts with the Amazon app through your bank’s ‘wallet app’ product.
-Optimize media spends
If a customer is responding to your email offers, why send him an SMS? If a customer is responding to your Social Media campaigns, why ask your call center to call? With a DMP, you can track the performance of your marketing campaigns across all platforms/channels; know the most effective channel and optimize your media spend accordingly.
5. Across Channels And Cross Device
Marketers in the FMCG industry are always looking for ways to better target their prospects online. With the proliferation of mobile devices and the urgent need to deliver relevant advertising, marketers need to effectively link devices belonging to the same user. This makes both cross-channel and cross-device reporting crucial for their digital marketing strategy. Data collection, segmentation, and activation are the main duties of a DMP, which helps the marketers connect consumer identity across channels and devices making it easier for them to target the right user at the right time across all digital touch points.
Most of the travel marketers want to drive action (i.e. bookings, revenue). Remarketing works as one effective strategy to drive that goal successfully as it allows them to re-engage with the users who’ve previously visited their websites. By gathering first-party data about visitors who visit a site and enriching that info with third-party data and offline data, DMP helps the travel companies run effective personalized remarketing campaigns to target specific audiences.By utilizing the data stored in the DMP, marketers can also personalize the message individual user’s view on their website; this helps to improve the overall user experience, and further increase conversions and revenues.
7. Prospecting and Finding New Customers
Marketers in the lifestyle industry always have growing sales targets; hence they keep looking for ways to reach larger audiences. Look-alike modeling, as a core function of a DMP, serves the purpose as it finds groups of audiences who look and act like your best, most profitable customers. DMP as a unifying technology aggregates data from any source. From these disparate data sources, marketers can centralize what they know of their most important target audiences. By applying proprietary algorithms, DMP analyzes the data and finds more user profiles that match the original audience.It offers marketers a more valuable approach to reaching new or current consumers in a cost-effective way.
Today’s customers have less time and are more tech savvy. And their expectations are simple – Consistent and personalized experience each time they interact with a brand.DMPs help the marketers do this right by creating a more holistic, complete and actionable profile of the audiences.
This blog post was an attempt to demonstrate major value propositions of DMPs. But, this is not an exhaustive list, as the DMPs can create endless possibilities for the marketers to succeed. To know more about other DMP possibilities, you can Schedule a Demo with Cuberoot.