The Financial Services sector has undergone a radical digital transformation in recent times. This change can be attributed to the popularity of services such as digital banking, online trading, and online insurance schemes. Going the digital way has also
resulted in the generation of large amounts of digital data. As the industry is highly data-driven, it becomes cumbersome to manage both offline and online data.
To analyze and make sense of the data, financial services marketers are turning towards digital technologies such as data management platforms and customer data platforms. Integrating these technologies with business objectives help in minimizing costs and
improving the customer experience.
DMP vs CDP – Key Differences
1. The Type of Data
DMPs primarily use third-party data from various data sources. For advertising, they target anonymous cookies. A CDP uses a company’s customer data or first-party data and it consists of both anonymous and existing users’ personally identifiable information
2. Data Storage and Integration
DMPs can store user data up to 90 days after which it’s replaced with new data. They also don’t have the capability to create targeted ad campaigns for select audiences. They can only do it for an anonymous audience.
3. Data Capture
When it comes to data capture, DMPs are good at keeping track of a user’s activity. CDPs can augment and enhance this feature by analyzing the user’s buying propensity and the affinity to certain marketing channels.
4. Channel Accessibility
DMPs are good for all digital channels where quick marketing decisions can be made to reach an audience.
CDPs help improve conversion rates, customer retention and engagement with clients, whereas DMPs streamline the data, increase revenue, and target new audiences. However, both CDPs and DMPs have
an interdependent relationship. For segmenting users better, DMP data can be fed to a CDP to actually enrich its own data. On the other hand, using CDP data within a DMP can help in targeting a particular user audience instead of a random anonymous audience.