The influence of CRM and DMP on email

Written by Femke van Zelst

These days, collecting and managing customer information is hugely important to organisations. A sound and up-to-date database can also have a lot of advantages. But how do you make sure all this data remains manageable, and how do you achieve better business results with all that data? In this blog, you will read more about the influence of Customer Relationship Management (CRM) and Data Management Platforms (DMP) on email.

Customer Relationship Management (CRM)

Customer Relationship Management (CRM) is a business strategy aimed at realising the long-term goals of the organisation and creating a sustainable competitive advantage. This marketing vision does not put the business and the product on centre stage, but rather the customer’s needs and wishes. The goal is to make maximum profit from the client by satisfying them and creating a long-term relationship. In Customer Relationship Management, customer-orientation has a high priority. This makes it important that the organisation has a good idea of the customer’s needs and characteristics. This requires the collection of a lot of data, and then linking that data together. Think of contact information, interests, preferences and order history. All this information is recorded in the CRM system. The better you know a customer, the better you can play into their desires and needs.

Data Management Platform (DMP)

A Data Management Platform (DMP) is a place where all collected data comes together and is combined, creating a clear customer profile for the visitors of your website or platform. A CRM Keeps track of data regarding visitors, both customers and non-customers. A DMP also completes the CRM data with customer behavioural data. A DMP is mostly used for pushing data to a platform where this data is not yet available. The data mostly comes from external data sources. A distinction is made between three types of data.

First party data

First party data is collected directly from the customer database, including website visits, page visits and purchase history.

Second party data

Second party data is first party data from other companies that is traded for your first party data. This is often data from companies operating in the same segment.

Third party data

Third party data is collected by data collection companies and is sold to companies to be used. This data is used to create marketing segments as well as to create higher value.

Figure 1: First, second en third party data

The link between CRM and DMP

By linking the data from CRM and DMP, marketers are able to reach 95% of their database anywhere on the internet. This gives marketers great insight into where (potential) customers spend their time on the internet, how they behave online, and what purchasing habits they have.

And then? What do you do with all that data?

By mapping all the data, you can create a 360 degree customer profile. A 360 degree customer profile not only maps gender, age and purchase, but behavioural data as well. It also looks at what the customer is sensitive to, what type of customer they are, and how they behave compared to other customers. This makes the 360 degree customer profile a very complete picture of the customer.

By linking the DMP to your email marketing software and regularly synchronising the data, you can approach the customer with the right message during all phases of the customer journey. For instance, if the customer is in the orientation phase, you can send an email with more information about your product. And if you know a customer is interested in your product and is in the decision-making phase, you can play into that by sending an email with a targeted offer. Email is an ideal channel to generate more traffic for your website, provide service and stimulate sales. By using the data from your DMP to send personalised emails, you will achieve higher conversion rates and build a sustainable relationship with the client. There are many more options open to you when you have a good DMP and 360 degree customer profile. For instance, you can also:

  • Segment based on e-mail send time.
  • Segment based on what someone is sensitive to.
  • Use unique email content for each customer.

Lastly, email marketing influences your CRM and DMP again. Because measuring open and click-through behaviour gives you data you can use for the customer profile. And that brings us full circle.

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