How Retail Brands can Attain Success With Data Management Platforms
“Data is the new oil”. This decade-old metaphor couldn’t be more relevant to present times. In every industry, data is playing a significant role. For retail, the prioritization of data has even crossed price and convenience, which at one time decided loyalty. Nowadays, users generate tons of data from online and offline purchases, loyalty shopper data, social and search data, and data gathered from the website visitors. This growth in the influx of data can be attributed to the proliferation of the internet and smart devices. In fact, 59% of all sessions on E-commerce sites are done via mobile devices. As such, one can easily say that customer data has become one of the most significant assets for retail brands. Therefore, it has become imperative for businesses to set up a foundation based on the collection of data. However, access to data is not enough. The data should also be executed properly across multiple channels as well as potential future channels. With structured data in place, businesses will take advantage of new technologies such as the Internet of Things (IoT), Augmented Reality (AR), Chatbots, and Virtual Personal Assistants (VPA) to succeed in the changing times and staying ahead of the competition. They can do all of that with a Data Management Platform (DMP), which can assist in collecting all kinds of data and deliver the best possible, personalized experience.
What is Data Management Platform?
According to Adobe, a “Data Management Platform or DMP is a tool used to consolidate the dispersed data sets of a company across first, second, third-party channels. It manages the segmentation and identity definition of the user to then provide cohesive audience targeting across all of the various channels where you might be engaging with a consumer.”
DMP helps marketers to make sense of data. It works as a centralized unit to collect all kinds of data and turn it into actionable insights. With insights, marketers can drive marketing plans and reach target prospects more effectively and efficiently. They solve the inadequacy of digital marketing by organizing a company’s or third-party data into attributes and building audience groups, giving them control and keeping customers at the center of the campaigns.
- Data Collection Approaches
- Data Integration Approaches
- Data Sources Supported
- Data Management
- Activation Channels Supported
- Support for Ad Servers
- Support for Personalization
- Support for Other Marketing Channels
A DMP collects the following data kinds of data:
- Desktop and mobile user data
- Web analytics
- CRM systems
- Point of Sale (PoS)
- Social platforms usage or trends
- Video consumption
- Offline, TV, and radio advertising data
- Publisher ad management
- Ad networks
- Credit card purchase statistics
Let’s see how DMPs benefit the retail sector.
DMPs help retailers to categorize their customers into niche segments. It offers information about customers based on their age, gender, spending history, interests, and needs. According to reports, around 77% of email marketing ROI comes from segmented, targeted, and triggered campaigns, in which, 42% of marketers don’t segment and only 4% segment with multiple data types. With data on segmented audience groups, retailers can pave the way for campaigns targeted across third-party ad networks and exchanges. It will also help in understanding which segment/channel performs the best and refine the campaign steps.
Here’s a link to Eyeota’s discussion on data management/
Accumulate Cross-Channel Audience Insights
While the lack of understanding of cross-channel insights prevents 21% of marketers from implementing multi-channel campaigns, retailers with the help of DMPs can collect and combine offline & online data, POS, CRM, loyalty, newsletter, signups, mobile, and other types of data to increase their conversion rate. It helps in locating the audience group’s demographics and personalize every touchpoint. Retargeting the customers who have visited the website while targeting the lookalike audience group also becomes easy with DMPs.
Personalization has become the cornerstone of digital marketing. It has become a key to success. Accenture reports that 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations. While another report cites 72% of consumers in 2019 only engaged with marketing messages that were customized to their interests. The audience group built in the DMPs gets tailored content to increase engagement. Creative and tailored content and functionality increase conversions even more. The same applies to websites and apps.
With the proliferation of the internet and multiple devices, users surf the web using different devices on different platforms. As the data is now separated among different platforms creates hurdles for retailers. At the same time, they need all kinds of data to deliver the right kind of engagement. With DMPs, regardless of the devices or platform used, retailers can collect valuable information about the device that their customers use as well as what they are doing. Whether it is a laptop, mobile, tablet, or users are active on email, or social media, DMPs helps retailers to sync offline, online, and mobile data as a centralized point of contact.
Taking Control of Future Engagements
By taking control of data today, retailers can secure their future. With the availability of actionable data insights, they will be able to deliver personalized and relevant content alongside preparing for the unprecedented times ahead by reading into emerging channels.
Retailers would also be able to take advantage of the newest virtual assistants including Alexa, Siri, Bixby, etc. The increased awareness and adoption rate of VPAs would help retailers seal the deals in the near future. AR/VR are already in use by companies highlighting their products to the customers in real-time. For instance, e-commerce companies are demonstrating their product in a 360° view and helping customers to virtually try on the product using the smartphone’s AR camera features. Furthermore, machine learning technologies such as chatbots are helping retailers in solving customers’ queries promptly. These technologies are powered by the data and can track metrics including user ID, intent, number of users, number of sessions, session length, and frequency of use from voice-enabled assistants. Deployed with the right data, technology can deliver tailored answers to customers’ needs in real-time.
In conclusion, Data Management Platforms helps retailers to collect and organize first-party and third-party data, offline and online data, offers insights into the audience groups, and sophisticated control of the data. With the DMP foundation in place, retailers can create seamless multi-channel campaigns that nourish loyalty and increase customer acquisition.