As a Data Management Platform’s main use is to collect, store and organize data, it is essential to first understand the complete complexity of the first, second- and third-party data that the platform needs to ingest before investing.
Before choosing a Data Management Platform, be sure to understand the supporting audience tools, algorithmic segment capabilities, and taxonomies, and how this will impact its performance to manage, categorize, and retrieve your data.
The Data Management Platform will need to have a user-friendly and intuitive interface as it will be used across a variety of teams including sales, marketing, and senior management.
Before activating data across a range of media channels, it is imperative to check which vendors the Data Management Platform has integrations with and for what period. Other things to consider are costs, timings, and limitations in media channels.
One must ensure that the Data Management Platform offers not only the right data but also the rich insights that one can glean from it. Therefore, the analytical tools the platform offers to measure audiences and media performance should be taken into consideration before choosing.
Privacy laws of various countries along with compliance with legal and industry regulations should be adhered to and in place before an enterprise decides to invest in a Data Management Platform.
Some Data Management Platforms offer license-based capabilities, while others may be driven by the number of profiles that will be stored, and incoming traffic. It is important to understand your business’ current and future growth aspects before investing in the right Data Management Platform.
Challenges in Adopting Data Management Platform
Poor Data Quality
Many enterprises lack quality first-party data and often need to spend valuable time and resources cleaning or even digitizing their data before implementing the Data Management Platform.
Lack of Internal Expertise
Integrating with Legacy Systems
Many modern Data Management Platforms are incompatible with legacy systems. It is, therefore, is invaluable to ensure that your systems are in sync with the new platform and ready to hit the ground running once deployed.
From following privacy regulations to understanding legal implications while dealing with customer data, protective measures need to be taken to ensure that there are no unauthorized collections of data, particularly by third parties. Businesses must have clearly defined rules and access protocols to ensure data security and enable the legal operation of their Data Management Platform.
ROI of Data Management Platform
While businesses certainly make considerable investments to implement a Data Management Platform, these platforms benefit the business in both direct and indirect ways.
Using a Data Management Platform leads to greater customer information and grouping capabilities. As a result, marketing teams can create hyper-relevant, real-time messages, and campaigns. Personalization results in more optimized ad spending with better results and ROI.
Benefits beyond marketing
Since many more meaningful data points about the customer can be gleaned from customer acquisition, it becomes pertinent to share the insights with not just the marketing team but also with product development, account management, sales, and many other teams. This means that rather than risk making ill-informed decisions, companies can use these data-derived insights and share them among multiple teams so that they can tailor their approach to customers.
Seamless cross-channel action
Seamless communication with existing and future customers is a direct benefit of deploying a Data Management Platform. With a Data Management Platform’s ability to integrate with many third-party systems like social media platforms, IoT and CRMs; the right data is aggregated and organized for taking action on as compared to organizations with siloed data flow, which in turn maximizes ROI for any company.