What Is A Data Management And Why Do You Need It?
There is no doubt about the importance of data to business success and the need to store and manage it effectively. In this sense, a Data Management Platform (DMP) collects, stores, and classifies digital information, providing pieces of data and information that the different sectors of the company can use to make intelligent decisions based on data.
If we simplify a lot, we could say that a data management platform is a data warehouse, but the truth is that the answer is not that simple. Since it is a place to store all kinds of information and analyze it, it is a tool or software that makes said data practical. Having a constant and endless supply of data without having a DMP is like having a key without a lock.
Data Management Platform: from myths to uses
A DMP unifies all the collected information, regardless of where it comes from, making the data available to other platforms to be used, for example, for marketing purposes such as targeted advertising or content personalization.
The data management platform allows you to connect different platforms so that companies cannot use valuable data about customers and users, when and where they want. However, some companies err when choosing it to cover needs such as:
- Data warehouse and analysis: This platform does not replace the data warehouse or the data lake since its mission is to activate the data.
- Closed ecosystem: They should never consider implementing it if they want to achieve, as DMPs release their data.
- An element designed for software only, a cookie only, or infrastructure only, as the Data Management Platform, must provide marketing intelligence, manage identities and data through various channels, and is essential for the marketing team.
DMPs offer users many ways to activate data on any channel. Among all the scenarios that can use them to provide a personalized experience, e-commerce and marketing allow the greatest return on investment in a Data Management Platform. One only has to look at the results figures of some so-called “big business” companies like Amazon to understand the potential of recommendations or targeted advertising.
The increased number of connected devices is a source of opportunities for businesses that know how to make the right technological choice and understand the advantages of having automated data processes. Understanding the customer’s purchase cycle, managing audiences, and designing personalized campaigns is easier with a Data Management Platform.
