Keeping up to speed with the needs and demands of your customers is not easy. The marketplace has evolved, consumer expectations have grown exponentially, and so has the technology marketers have at their fingertips.

There’s no denying the importance of data-driven decision making and the role a Data Management Platform (DMP) can play in that process, but a complete shift in the way you operate can be a daunting thought.

There are some significant and recurring challenges faced when adopting a DMP. But the good news is, they can be overcome.

Sourcing essential expertise

One of the largest challenges for organisations planning to invest in data-informed decision making is a lack of internal expertise, a problem often exaggerated by the level of support and advice most DMP providers offer. In many cases, a DMP is treated like a SaaS (Software As A Service) platform, with access handed over and marketers left to their own devices.

But to get the most out of the capabilities, you need to be able to navigate the platform. While hiring expertise is an option, there’s also the opportunity to outsource. Once you’re up and running you can look to bring expertise in-house but you may find it’s easier to continue to outsource. Likewise, don’t be put off by having to hire new heads – it’ll be worth it in the long run.

DMPs are in the process of revolutionising the media buying and marketing landscape so that money which was historically spent on media buying agencies and CRM can eventually be piled into your DMP capability.

Breaking down internal silos

Silos are an issue across businesses, not just when it comes to executing data-informed decision making. In fact, the 2016 Digital Marketer Report found that only 30% of marketers work in fully integrated teams, meaning 70% are operating either completely siloed by channel or in a partly integrated set up. When it comes to DMPs, this causes some problems. It impacts the capability to utilise a DMP and undertake data-informed decision making because there is already a historic split between media buying, traditional marketing and e-commerce.

A DMP can ingest data from any repository you have and can help break down any technological silos in the organisation. However, you can’t de-silo teams of people using a tool. The best approach is to ensure that different teams and channels have shared KPIs so all can benefit from what a DMP can deliver. Identifying a DMP champion to manage the cross-functional challenges is also a smart move. They’ll help teams work together and share success stories.

Fixing first party data

All marketers strive to improve knowledge of their customers, and many brands and users are nervous about the state of their first party data. First-party data is critical, and if quality is a concern, there are many services available to help improve it. If your data’s not quite up to scratch, external data sets that can be overlaid on top of patchy first party data can also be introduced.

Daunting data sharing

Anxiety around data sharing is not uncommon. A brand’s first-party data is often one of its most valuable assets and something it has traditionally kept under wraps. Overcoming that anxiety is incredibly important in order to allow brands to make their data work as hard as it can: the value of that data asset depends on being able to use the insights that can be extracted from it.

Failure to share data means it will never meet its full potential. The best solution is to ensure data is only shared with trusted third parties. It’s natural to be apprehensive, so a trusted partner is the most sensible and safest way to share.

The measurement challenge

Measuring success is always a challenge – especially with anything new. Having clear objectives in place from the start puts you in a good position to report on success. You need to decide what you are trying to achieve and put goals in place.

Measuring success in media spend is much easier. The price of every impression is captured and the total costs of a campaign can be easily monitored. If you are finding it difficult to build a viable business case it may be worth focusing on media efficiency and using that to prove the value of data-informed marketing – it’s not where the biggest benefits lie but it is a sure-fire way to get your foot in the door.

Tough challenges = significant reward

There’s no doubt that evolving the way we manage our interactions is changing. The need is there to be flexible and deliver tailored customer experiences. At the core of that is the requirement to manipulate and compute large volumes of data in incrediblly short time frames.

The brands that don’t keep up will be left behind. By both their competitors and their customers.

 

By Colin Grieves, managing director at Experian

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