Fully in-line with the growth of digitization, the creation and collection of data is becoming more and more important. As such, if your business is accustomed to a significant amount of data, then you might need to consider migrating over to a data management platform.
In doing so, you have the opportunity to not only capture valuable data but to also transition it into useful insights. Before exploring if you need to migrate, let’s first take a quick look at what a data management platform actually is.
What is a data management platform?
In a nutshell, a data management platform, or simply a DMP, is an innovative protocol that allows you to collect, organize, and activate valuable data from a range of different sources. This not only includes online sources but via both offline and mobile platforms too.
One of the overarching goals of a data management platform is to allow users to gain useful insights into their customers, or potential customers. Without utilizing a data management platform, all of the data that you collect is subsequently left in raw format. In layman terms, this means that your data remains virtually dormant. On the contrary, a data management platform allows you to convert this data and at the very least, allows you to understand the insights that you have collected.
If used correctly, this is an ultra-powerful tool for businesses that want to not only understand what their customers are doing, what they might do in the future. When it comes to the underlying mechanisms of a data management platform, it is important to understand that the data itself can be obtained and unstructured from a plethora of sources.
This includes the likes of web analytic tools, mobile and desktop web, social media, CRM, and online videos, among many other sources. These sources can also be broken down into both first and third-party avenues. Regarding the former, this is data that you and your business have collected independently.
For example, if your online website has the potential to collect data on customer downloads, clicks, likes or orders, then a data management platform can then extract this into a singular hub with ease. On the other hand, a fully-fledged data management platform can also extract similar characteristics from third party sources.
As much of this data is available in the public domain, a data management platform is also ideal for non-proprietary sources.
How do I know if I need a data management platform?
Whilst the benefits of a data management platform is tenfold, it is important to first recognize whether or not your business requires one. First and foremost, it should be noted that businesses from virtually every industry might find the underlying benefits of a data management platform useful.
For example, whilst those operating in the iT space might find a data management platform useful for insight-driven decisions on software and machines, C-level management might use it to make smarter decisions.
Do you have a requirement to do more than just data collection?
Whilst there are many systems out there that have the capacity to collect large quantities of data, you need to ask yourself what you aim to do with that data. If once the data is retrieved, you plan to gain highly valuable insights via a centralized one-stop hub, then it is likely that a data management platform will support these business goals in a significantly more efficient manner.
Do you want to take your data analysis goals to the next level?
If you and your business want to take your data collection methods to the next level, then it is important to exceed just first-party data. In other words, if you want to gain useful insights into data that is held by third party sources, or even better, offline, then a data management platform will be able to facilitate these objectives.
Does your business want to personalize content and ads?
One of the most unfavorable outcomes from online ad campaigns is to market goods and services to those that have no affiliate to what is being offered. What we mean by this is providing audiences with un-personalized content, subsequently resulting in a highly ineffective ad campaign.
On the contrary, due to the sheer capabilities of a data management platform, you have the potential to initiate accurate target ads and content to those that have an interest in what you are offering.
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