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Need to acquire 360-degree customer knowledge or optimize your business processes? Many tools can help you with that. Can you navigate acronyms and platforms (DMP, CRM, CDP, CMP, ERP, Data Warehouse…)? We present them to you in a glossary.
DMP – Data Management Platform
The DMP allows a brand to centralize the online navigation data of its visitors in a single database. This data is collected via a cookie. Each brand can conduct online advertising activation.
The DMP meets the needs of enterprise marketing departments.
Contrary to what is read here and there, the data is not anonymous at all. On the contrary, it allows the individual browsing paths of Internet users, represented by cookie IDs, to be reconstructed.
However, the usefulness of DMPs is now partially called into question.
- The CNIL (French Data Protection Authority) requires that these cookies only be loaded and deposited after the prior consent of the Internet user. Advertising activation will thus only concern those who consent.
- DMP providers can enrich an editor’s first-party browsing data with third-party data. However, this third-party data collection is being questioned because some browsers (Chrome, Firefox, Safari) block third-party cookies by default.
- A DMP is only effective and practical in practice with a minimum volume of the audience that not all website publishers have.
CDP – Customer Data Platform
Harsh on data used in silos. The CDP allows the reconciliation of CRM, media, cookie, and email databases for a 360° knowledge of prospects and customers.
The behavior of the customer/prospect is thus tracked for all channels through which they interact with the brand. Their offline activity enriches the knowledge of the customer’s online behavior. In passing, this makes the segmentation more effective.
CDPs enable the management of omnichannel campaigns, i.e., interaction with the customer/prospect on relevant communication channels.
CRM – Customer Relationship Management
Since the 1990s, CRM has been the reference tool for creating customer profiles. These profiles provide knowledge acquired from so-called “cold” data:
- contact information;
- transaction data from an e-commerce site or physical stores;
- data collected through loyalty cards and programs;
- solicitation forms (contacts, requests for quotes or appointments);
- data collected by customer service representatives and salespeople (complaints, reports of meetings, and customer presentations);
- digital data related to marketing campaigns and actions.
CRM is used to manage customer relationships and optimize sales. It allows for organizing marketing campaigns oriented towards the retention and loyalty of the customer base.
Historically, this tool is rather intended for customer service, call centers, and salespeople.
PRM – Prospect Relationship Management
PRM is the equivalent of CRM but for prospects.
Some companies manage both types of the population via the same tool. The CRM will thus aggregate data from both customers and qualified prospects. Others prefer to dissociate and acquire a separate tool for candidates.
Why, since it is a matter of segmenting prospects to improve the relevance of marketing campaigns? Simply put, the objectives pursued are different. Campaigns addressed to candidates pursue the aim of qualification and conversion to customers.
Segmentation, KPIs, and tracking indicators are, therefore, different.
ERP – Enterprise Resource Planning
Unlike CRM, which is used to manage customer relationships, ERP is a centralized management tool for company resources.
It consists of a single database to which various modules are linked.
- Sales management;
- Human Resources;
- Payroll management;
For each relevant department, business processes are implemented within the tool, which is automated and optimized to improve efficiency. ERP enables companies to increase productivity while rationalizing costs.
MDM – Master Data Management
MDM is a technical infrastructure often managed by a company’s IT department. It aims to produce and centralize a unique reference database that will be authoritative for all the connected databases and tools.
This master database will only contain strategic data corresponding to the company’s core business activity, including customer data. MDM does not provide a 360-degree view of customers, meaning that not all marketing data associated with customers is stored here. However, digital traces of consent or opposition (for example, to commercial prospecting operations) can be held here.
- The database is created by aggregating various internal sources within the company. MDM takes care of data quality management, thanks to a dedicated module, particularly for cleaning/correcting/deduplicating tasks. Third-party providers can enrich these data.
- Finally, the database thus created is made available to other tools in the group. MDM is not designed to meet the needs of marketing departments directly. For example, it has yet to be used to segment an audience or set up advertising campaigns.
CMP – Consent Management Platform
CMP is now an essential tool for website or application publishers, such as what Axeptio provides. It manages a database dedicated to authorizations and refusals regarding the processing of personal data.
- It takes care of consents and objections by displaying a solicitation module.
- This module replaces, for example, purely informative banners regarding cookies.
- It also makes available to the user a preference management panel, allowing subscribers to subscribe or unsubscribe to newsletters or commercial mailings. A CMP will allow a website visitor to determine the type of cookies they accept.
Finally, a CMP enables the tracking and managing of collected consent and objections proofs.
Data Warehouse is a physical location with servers for storing large volumes of digital data. These data come from various company departments and are intended to be centralized and standardized.
Data warehouses are not accessible to all departments of the company. They are subject to stringent security measures. The objective is not to produce unique customer knowledge but to facilitate analysis and business intelligence reports with the resulting decision-making.
Conclusion: Choose a tool that suits your needs
Beyond these definitions of the essential functions of each tool, you need to specify your needs to find the appropriate platform.
This will help you determine the following:
- Which platform best meets your needs;
- Whether you stick to the essential functions or use additional modules and features.
For example, a DMP can be used solely for online campaign segmentation and activation. Some solutions also allow you to combine this data with CRM data, making activating personalized email campaigns easier.
Regarding data protection and security issues, the stakes are real. Therefore, remember to integrate data protection and security aspects from the selection phase of a solution. This will prevent surprises that could delay the launch of your project or increase its cost.