Legislation regarding user privacy affects how companies can use DMPs. For instance, Europe’s General Data Protection Regulation (GDPR) and South Africa’s Protection of Public Information Act require data to be anonymous and short-lived. Kenya’s Data Protection Act of 2019 was modelled on the principles found in the GDPR, and it gives people whose data is collected many rights, including the right to be informed about what the data is going to be used for, and the right to access this data.

These regulations may make third-party data collection and storage via DMPs much more difficult, and in some cases, illegal. DMPs also don’t provide the same information as standalone analytical tools. They lack a complete view of your customers, which is where CRM and CDP systems become necessary.

What is customer relationship management?

CRM systems aim to improve business relationships by managing interactions with existing and potential customers. They create a simple interface for employees to record basic customer information, such as email, contact numbers, or call conversations, as well as other important details, such as the customer’s buying prospects, contract status, or reasons for a won or lost deal.

CRM systems help businesses learn more about their customers, organise their information, and optimise their interactions. CRM is useful for operations in marketing, sales, and service, as you frequently use past customer data to contact new or returning customers. CRM can serve as an analytical tool to create a sales pipeline for forecasting and improving customer satisfaction. It also helps with creating personalised experiences based on past interactions.

A common drawback of a CRM system, however, is that it often creates a limited view of the customer as it focuses on first-hand interactions and isn’t able to fully integrate data from different touchpoints. Because it also usually relies on manual entry, it can easily become overly complicated, labour-intensive, and difficult to manage effectively. That is where CDPs step in.

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