This week’s guest blog post is contributed by Agata Dooreck, Market Strategy Director, Oracle Data Cloud.
With today’s price-sensitive market, effective marketing has become critical for retail marketers. More and more vendors are promising increased efficiency in-market through the use of data, both on the digital and direct mail side.
This cluttered marketplace can be difficult to wade through – undoubtedly, there are a number of different kinds of companies bundled under the “big data” umbrella. Of these companies, the most common are Data Brokers (those who aggregate and sell data) and Data as a Service companies (DaaS – those who leverage data to inform marketing decisions at a deeper level).
The difference between the two businesses is significant, which is why understanding when and who to work with can be crucial to a retail marketer’s success. Here’s how marketers can differentiate between the two businesses to determine which works best for them.
DaaS vs. Data Broker
Before we dive deeper into which to choose, it’s important to understand the difference between the two. Data brokers collect information about an individual’s consumer behavior and then provide that information to marketers in the form of a list so that they may make better-informed marketing decisions.
A data broker’s sources can be public or private as well as directly contributed information from the open web and various social networks. The most common data source is offline purchase data stored in CRMs. These data points, when aggregated can help identify anything from purchase behavior to location.
Meanwhile, DaaS is a service approach in which unique data is sourced or custom built in order to create a list of prospects. This can begin with the ingestion of a company’s CRM file for measurement, customer acquisition or running models against data sources in order to identify additional propensities and behaviors. While list buying can be a disjointed way of pursuing prospects, DaaS is a noticeably different and far more personalized approach.
For example, using DaaS, Oracle Data Cloud enables you to use consumer data to inform and measure your marketing, connecting you with the right customer, personalizing every interaction and measuring the effectiveness of each engagement.
Which to choose?
If a retail marketer has discovered that they are seeing a return across a given list, they may want to go with a data broker as part of their continuation strategy. For those who are looking to build upon their pre-existing success in data by leveraging world-class models to create customized data solutions—DaaS partners are a great choice. In a world that is becoming increasingly obsessed with personalization, there is very little room for un-customized data.
Since DaaS has all the advantages of a data brokerage, but with more flexibility to personalize, DaaS offerings like Oracle Data Cloud’s revolve around aggregating, anonymizing and modeling data – making many marketers feel more confident with the process..
Bottom line for Retailers:
While there are more choices than ever for retailers these days, all data providers are not created equal. Whether you go with DaaS or a Data Broker, be sure to understand the overall structure of the company you work with. For example, our business, unlike many data businesses, is structured on a vertical basis, meaning we have dedicated specialists working to specifically service companies within their designated vertical.
For us, the retail vertical is a huge focus and has an entire team of dedicated professionals. The marriage of our specialization in data services, with our team of retail specialists—it is truly unlike anything else in the market. And when you’re ready to make the choice, be confident that your data is in the right hands.