User Experience Web Analytics

DMP, personalization and UX

DMP, personalisation and UX
Lamia Bakhalek
Written by Lamia Bakhalek

What’s UX? Is this a kind of new superpower? Sort of.

User Experience Design (UX) is a fuzzy notion in France. Yet this is a key concept in digital. As Steve Jobs used to say: “Design is not just what it looks like and feels like. Design is how it works”. In other words, UX is the power of designing an ergonomic and intuitive interface. It aims to provide graphic solutions to usability problems. “Is my website or my app user-friendly? Can users find what they want easily and in a short time?” Here are the questions that marketers need to ask themselves. To answer these questions, they have to take a deep dive into data. Today marketers are aggregating a huge amount of data but only 1% is analyzed to make decisions, according to a survey from IDC

 

What’s a DMP?

UX can be leveraged to increase retention rate and seduce new customers. To help marketers with that, there are tools like Data Management Platforms (DMP). Usually first party data were stored as separated silos. Web analytics data, CRM data, marketing campaigns data… But now, thanks to DMP, it’s possible to store all this data in one place… And also to add other types of data! A DMP is a kind of mega tool that brings back together all data sources about one customer, to create one profile. Main DMP providers on the market are Eulerian, Bluekai (Oracle) and Demdex (Adobe). With a DMP, marketers can centralize:

1- First party data, which includes:

  • Behavioral data: pageviews, queries, purchase history, answers to surveys…
  • Customer data: online & offline CRM data
  • Interaction data: impressions and clicks on advertising campaigns (display, search, retargeting, emails)
  • Mobile and in-app data
  • Social data: interactions on social networks

2- Second party data. It’s provided by other companies, usually partners, whose audience has similar profiles to yours. Thus second party data is a way to get new customers.

3- Third party data, including:

  • Demographic data
  • Geolocation

4- Others, such as open data. For example, the weather.

DMP, personalisation and UX

By unifying data, DMP enables companies to get organized and clear results. Then they can create segments more easily and analyze each user profile. Moreover, it enables marketers to have a customer-centric approach. This is where UX and personalization come into play.

 

How can I personalize my interface with data?

Personalization consists in adapting the interface to users. And to so, marketers rely on data contained in the DMP. Let’s take an example to understand how useful and valuable it is. We work for a retailer in the fashion industry. This is what we know about one customer from our DMP:

  • More likely to click on the “Dress” section after homepage
  • Last purchase: 2 dresses, 1 pair of shoes; amount: 375€
  • Female
  • 30 years old
  • Paris
  • December, Sunny day

So, instead of displaying the basic visual on the homepage, we decide to personalize it. Thus, when this woman will visit our website, she will get a personalized message: a visual featuring new dresses and/or a banner offering 10% off on dresses only.

Qubit developed a platform to optimize user experience and conversion rate. According to one of their case study, it’s possible to get an increase of 20-25% in conversation rate. Let’s have a look on this video to understand how it works:

It’s even possible to get contextual data and make recommendations to customers in real time. Teradata has developed a tool that helps marketers to take decisions by making recommendations. For instance, a customer from BNP Paribas is checking the mortgages section then making a simulation to estimate the rate he can get – and to get the result, you need to write your email address in the form. He gets 2.27%. He decides to leave the website. Right after, he receives an email. He opens it and finds that the bank is ready to offer him 1.99%. The recommendation tool assumed that if the customer left the website without trying to get more information, it was because the rate was too high.

Personalization offers more relevant content to customers and contributes to improve user experience. Marketers can even adapt an interface in real time and make recommendations either according to customers’ profile or customers from the same segment. And all this thanks to DMPs. Thus, it’s a way to improve the relationship between the company and the customer. E-commerce companies can then avoid churn and increase their conversion rate.

About the author

Lamia Bakhalek

Lamia Bakhalek

Hi! I am Lamia and I am studying Digital Business Strategy at Grenoble Ecole de Management (GEM). I am also currently working as a Digital Performance Consultant at Webedia