DMP 101

DMP is a buzz word that is being tossed around quite a bit. It seems like a solution that rises from Big Data and performs some complicated analytics to ease out a marketer’s life. The perceptions and jargons attached to a DMP have got many of us wondering – what is a DMP anyways and does my brand really need one?


A DMP (expanding into Data Management Platform) gathers customer data from different sources within a company and stores it at a single place. It scans through this data and helps marketers answer four critical questions about their business.

  1. Who are my customers? As brands get busy with customer acquisition they reach out to customers in different ways – email campaigns, social media, website, events. Sometimes they connect with a single customer through multiple channels and customer responses to each of these are stored as disjoint pieces of data scattered across data-bases, CRM, web logs and so on. A DMP matches all customer data generated in different formats and channels to create a single customer database, and helps brands map their customers across these channels to understand their customers’ needs better.
  2. How did they find me? Where has the customer transacted – online, offline or both? Mapping customer activities from different channels helps you determine the route of purchase for all your customers. For example, you can find out how many of your customers who looked at flights on your website have booked using your app. Or how many of your customers that received promotional emails, have gone ahead and made a purchase from one of your brick and mortar outlets. Once you know this, you can group customers based on where they buy from and connect with them on these channels. A DMP helps your brand measure, validate and attribute your marketing efforts across channels for greater effectiveness.
  3. What do they want? While it is still difficult to decipher someone’s mind, customers do leave intent signals behind every time they transact with your brand. The products that they looked at, the time that they spent on those pages, the products that they have bought in the past – a DMP tells you how customers have been transacting across your assets and predicts their future purchases. With the right DMP you could customize your recommendations for every customer.
  4. Why do they like me? Why do they like me- (1)

An answer to this question is the Holy Grail that brands seek today. Brands are constantly striving to maximize customer LTV(Life Time Value). What brings your customers back? Do you have better deals, better products, is your service better or do they just like the way your app works? How can you bring back those lost customers? A DMP does a thorough analysis of all customer transactional data before giving you these answers. Moreover, with a good DMP you can ask any question and you will get clear insights that can steer your business ahead.

But does your brand need a DMP? How do you choose the right DMP partner? What are the first steps? How about best practices? All this and more coming soon.

About the author

Associate Vice President, Product Management at Vizury'

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