2.13. CRM, DMP, CDP... How far should data management go?

The digital revolution has profoundly transformed the way cultural institutions manage their audiences, placing customer data at the heart of their development and loyalty strategies.

In this context, Customer Relationship Management (CRM) solutions have gradually been deployed, replacing traditional databases. A new generation of much more sophisticated tools has now emerged: Data Marketing Platforms (DMP) and Customer Data Platforms (CDP). What services do these new solutions offer? What is their added value, and are they suitable for cultural venues? This article aims to clarify these concepts, explain the types of data involved, and show how these tools can contribute to a better understanding and retention of audiences.  

To fully understand the scope of these platforms, it is essential to differentiate between the Data Marketing Platform (DMP) and the Customer Data Platform (CDP).

Data Marketing Platforms (DMPs) allow the collection, centralization, and analysis of data from various sources external to the organization, which are most often anonymous. DMPs are primarily used to optimize advertising campaigns and acquire new audiences. They rely on third-party, aggregated, and anonymized data (cookies, browsing information, etc.) which, once combined, create audience segments. For example, a DMP could enable a theater to target theater enthusiasts who have visited culture- or ticketing-related websites. The goal here is to develop the audience.

Customer Data Platforms (CDPs), on the other hand, work exclusively with data owned by the organization. They are persistent, unified databases based on all management systems within an organization that can generate data. These CDPs thus collect first-party data generated by users during their internet browsing, phone interactions, or even physical point-of-sale visits. Once unified, these data are segmented to create audiences based on various criteria. These audiences will then be used to establish the marketing strategy of the organization.  

A CRM (Customer Relationship Management) software, known in French as logiciel de gestion de relation client (GRC), is, as a reminder, a tool designed to process, analyze, and reuse information related to interactions between clients or prospects and the organization (see 2.04. What can I expect from a CRM?). There are three types of CRM, each addressing specific business needs:

• Sales CRM, which support and automate commercial processes, notably identifying prospects (future spectators), tracking revenue growth, and analyzing purchasing behaviors. Sales CRMs were the first to appear, and for many people, the term "CRM" refers specifically to "Sales CRM."
• Marketing CRM, whose main function is to orchestrate marketing campaigns and scenarios. These tools enable segmentation of targets, message personalization, and automation of multichannel campaign execution and tracking. This type of CRM is also referred to as "marketing automation" or "marketing platforms."
• Customer Service CRM, dedicated to managing interactions with spectators post-purchase. They centralize incoming requests and provide indicators for managing service quality. They can also be used to manage call campaigns. These CRMs are much less common in the cultural sector and are typically found only in large organizations.

In live performance, Sales CRMs are sometimes integrated with ticketing software. Some solutions act as intermediaries between ticketing software and Marketing CRM solutions. Finally, other CRMs offer integrated functionalities within a single tool. In summary, live performance CRMs primarily handle ticketing and emailing data.

CDPs therefore allow for further integration and consolidation of data, enabling a deeper understanding of spectators, partners, and prospects, and support a more advanced and deployed marketing strategy.  

As we explained in the introduction: the major difference between a CDP and a DMP lies in the origin of the data. A CDP consolidates all data owned by the institution ("first-party data"), whereas a DMP integrates third-party data.

To better understand the notion of first-party and second-party data, we invite you to consult the dedicated sheet titled "Tomorrow, a World Without Cookies?" (sheet 40).

If DMPs are useful for attracting new audiences through targeted advertising, CDPs play a central role in loyalty by relying on a better understanding of spectators. These tools therefore serve different purposes and use different types of data.

Take the concrete example of a cultural venue organizing its new season and wishing to attract new spectators while retaining regulars.

• Thanks to a DMP, it can identify and target, through advertising campaigns, profiles of internet users who share interests in theater and culture but have never attended a show at this venue.
• With a CDP, the same theater can segment its existing spectators to personalize communications: through refined segmentation, it can identify spectators with similar purchasing behaviors.

The differences between these two tools mainly lie in the nature of the data, their retention duration, and whether the data is anonymous or nominative: these solutions do not exploit the same type of data, with DMPs mainly using third-party and anonymized data, while CDPs work by aggregating data collected by the organization itself. These solutions also differ in how they retain data: CDPs keep and use it over the long term, as their very principle is to generate knowledge through data aggregation; meanwhile, DMPs use data over a limited period of a few months.

However, these tools require several things: human resources to manage and use them, financial resources to deploy them, and data sources to exploit. These sources and resources must be weighed against the expected development challenges. That is why, to date, the use of these platforms remains relatively rare in the cultural sector, due to the small size of organizations, their teams, and limited budgets. The only CDP deployment projects we have observed are led by major institutions (Opéra de Paris and Théâtre National de l'Opéra Comique in France, Théâtre National de Zagreb in Croatia...).

Without necessarily acquiring these tools, smaller structures can adopt their logics. It is entirely possible to apply reasoned, organized, and measured processes without resorting to these advanced services. Implementing a CRM (Customer Relationship Management) can be sufficient for an initial segmentation of the audience and personalization of communications.  

Collecting, analyzing, and leveraging data requires establishing strict governance. Managing and exploiting large volumes of data cannot be improvised: it demands solid governance and an ethical framework to ensure responsible and respectful use of audience information. A marketing team aiming to implement such tools within its organization must not underestimate the complexity of these projects and should engage fully aware of the technical and regulatory challenges. The following principles should be followed (complemented by sheet 9 on the data regulation applicable in Europe):

1. Establish a data charter: before starting, it is essential to set up a charter defining the rules for collecting, using, and storing audience data, in accordance with the principles of the General Data Protection Regulation (GDPR).
2. Appoint a data referent: to ensure project coherence, a Data Protection Officer (DPO) must be appointed. Their role is to lead the data management strategy, oversee data quality, and ensure continuous training of the teams.
3. Prioritize transparency: audience trust relies on ethical data management. It is crucial to communicate explicitly about the data collected, its use, and to provide clear options for consent and opt-out.

• [EN] CDP vs DMP: A Complete Guide to These Two Platforms and How to Choose the Right One (external link), Twilio Segment, segment.com
  
• [FR] CRM vs CDP – Comprendre leurs différences et exploiter leur complémentarité (external link), Cartelis, décembre 2024