A data management platform is software used to collect and manage large data from different sources
A DMP is an important part of data-driven marketing because businesses can collect and analyze data from online and offline sources to provide deeper insights about their customers. With DMP, companies can customize and improve their marketing and advertising campaigns based on the data gathered.
How does DMP work?
DMP collects data from any interaction your business makes with your customers. This can be through online touchpoints – applications, websites, social media, and offline such as information from the store. Besides 1st party sources, DMP also collects 2nd party data from associates or partners and 3rd party data.
From the information collected, DMP software will optimize the data and create a customer profile using lookalike audiences—potential prospects that match your best customer groups. Marketers can use this new insight to push the right audience through the buying process.
