A data management platform (DMP) is a system that gathers and organizes data about a business's customers and buying journey, allowing businesses to identify their customer base.
In many ways, a DMP is the backbone of a modern, customer-centric business. It collects various kinds of data from across the business ecosystem, including first-party data (such as website metrics, subscriptions, and app usage), second-party data (such as data derived from another similar business), and third-party data (such as information from other websites or apps).
After it gathers the data, the system classifies and organizes all the information, enabling the business to glean insights and make any needed adjustments to its sales or marketing initiatives.
Through this process, DMPs help businesses identify their existing and ideal customer segments; customize and scale marketing campaigns; and effectively control advertising and marketing costs.
Given the complex and numerous ways today’s customers engage with businesses, having a DMP that can help a business create a customer profile is essential to connecting with customers, especially within the ecommerce landscape.