Understanding CDP and DMP: How They Can Help Your CX
As businesses continue to gather more customer data to inform their marketing strategies, the use of customer data platforms (CDPs) and data management platforms (DMPs) have become increasingly popular. In Southeast Asia, where the eCommerce market is rapidly growing and customer experience (CX) is a key differentiator, understanding the differences between these two tools and how they can enhance CX is crucial.
CDP vs. DMP: What’s the Difference?
A customer data platform (CDP) is a tool that collects, unifies, and manages customer data from various sources and touchpoints, such as website behaviour, customer support interactions, and marketing campaigns. The primary goal of a CDP is to create a single, comprehensive customer profile that can be used to improve customer experience (CX) across all touchpoints.
On the other hand, a data management platform (DMP) is designed to collect and manage anonymous audience data, primarily for use in programmatic advertising campaigns. DMPs aggregate data from various sources, including third-party data providers, to create audience segments that can be targeted with specific ads.
How CDPs and DMPs can enhance CX
Personalisation is a key driver of customer experience, and both CDPs and DMPs can help businesses deliver more personalised experiences to their customers. CDPs can help businesses create a unified view of each customer's behaviour and preferences across channels, enabling them to tailor their marketing messages and offer to each individual. DMPs can help businesses create audience segments based on demographic, behavioural pattern, and contextual data, which can be used to deliver targeted ads that are more relevant to each persona.
For instance, a Thailand cosmetic brand approached ADA during times of uncertainty. With the combination use of CDP and DMP, we identified the different personas and created multiple audience segments based on the data we gathered. Then, targeted ads with different messaging were delivered to each persona. Through personalisation, brand engagement increased by 156%.
2. Omnichannel Marketing
Southeast Asia is a diverse region with a wide range of digital touchpoints, from eCommerce websites to social media platforms to messaging apps. While CDPs can help businesses deliver a consistent, personalised experience across all these touchpoints by unifying customer data from each source, DMPs can be used to deliver personalised ads across multiple channels, helping businesses reach customers wherever they are – especially on the channels they prefer.
3. Customer Insights
Understanding customer behaviour is essential for delivering a great CX, and both CDPs and DMPs can provide valuable insights into customer behaviour. CDPs can help businesses identify patterns and trends in customer behaviour, enabling them to optimise their marketing strategies and improve CX over time. DMPs can provide insights into the characteristics and behaviours of different audience segments, which can be used to refine targeting strategies and improve the relevance of advertising campaigns.
A good case in point: Yoodo, a digital telco provider in Malaysia wanted to acquire new users upon their launching, especially the young and urban. Deriving insights from DMP, we created multiple unique audience segments based on consumers’ digital footprints. We personalised our campaign messaging and targeted different personas with different ads. The results? Monthly activations increased by 112% and 6,600 monthly activations from retargeting efforts.
Data privacy and compliance are gaining more attention in Southeast Asia, with regulations such as the General Data Protection Regulation (GDPR) and the Personal Data Protection Act (PDPA) being implemented in many countries. With CDPs, businesses can ensure compliance by providing a centralised, secure repository for customer data that can be accessed and managed according to local regulations. DMPs can also help businesses comply with regulations by providing transparency into how customer data is collected and used in advertising campaigns.
Delivering a better customer experience
Both CDPs and DMPs play an integral role in enhancing customer experience, whether you’re in the beauty and fashion, FMCG, telco, or gadgets and electronics industry. By understanding the differences between these two tools and how they can be used together, you can develop more effective marketing strategies based on valuable customer insights and deliver better experiences to your customers through personalised experiences. All while ensuring compliance with data privacy regulations.
Curious how CDP and DMP can drive your business growth?
ADA x Treasure Data partnership leverages our deep experience in media solutions and Treasure Data's industry-leading technology to deliver truly exceptional customer experiences. We specialise in building custom Treasure Boxes, which are tailored to meet the unique needs of each client. Our experts have a deep understanding of both technology and industry, allowing us to deliver customised solutions that drive real business results.