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Business

What is Identity Resolution and How Does it Work?

Identity resolution is a solution to address the challenges of customer data management. It allows you to build addressable and complete customer profiles. Identity resolution solutions can be customized to your brand’s needs. You can choose a deterministic or probabilistic matching. It helps you understand the consumer journey so that you can target your marketing efforts more efficiently.

Customer Data Platform

Identity resolution is a core component of Customer Data Platform (CDP) capabilities. It enables marketers to understand the identity of anonymous or unauthenticated visitors to their sites. By identifying these visitors, brands can decide the following best action. For instance, the data collected by Identity Resolution may reveal that the anonymous visitor is a consumer looking for running shoes. This data can help marketers to personalize their messaging.

A customer data platform helps companies integrate data from multiple sources into a comprehensive profile. It also enables companies to expand customer information. This can be done through identity resolution or data unification. Data transformation is essential in customer data integration because it makes the data more usable by standardizing data formats and filling in missing details.

Probabilistic or Deterministic Matching

Regarding identity resolution, you have two options: deterministic matching and probabilistic matching. Probabilistic matching uses algorithms to compare data points and matches a match based on similarity. It’s more flexible and less accurate, but it’s a valuable approach for some applications. For example, this approach may be the best choice if you’re using anonymous personalization in a multichannel marketing strategy. On the other hand, deterministic matching is based on the available identifiers and has more accuracy.

Deterministic matching uses data sets containing the same customer profile and domain data. It works best in cross-browser scenarios but can be limited in scale. A deterministic match is also limited by the number of logged-in users it can access. Nevertheless, deterministic matches can offer a high degree of accuracy and a high degree of consumer privacy.

Benefits to Marketers

Identity resolution is a powerful marketing tool that can connect an array of online identities to one single customer. As a result, marketers can better track their customers’ buying journeys. Using a unique person identifier, a brand can personalize its content to meet individual customers’ preferences.

Despite these benefits, it can be tricky to implement a comprehensive identity resolution strategy. The customer journey is complicated, with various devices used by shoppers. They see ads on their smartphones, research products on their desktops, buy items in-store, and more. This makes it even more critical for marketers to understand which devices and channels are being used by each customer.

Identity resolution also supports data governance and enhances brand trust. It enables marketers to more efficiently manage customer preferences, comply with corporate policies and regulatory requirements, and increase the effectiveness of their marketing campaigns. It also enables closed-loop measurement and multi-touch attribution. It reduces data overlap and duplication, which allows marketers to spend more efficiently on their campaigns.

Implementation Challenges

Identity resolution connects the growing number of consumer identifiers to one specific individual. It is a crucial technology that enables marketers to understand each consumer’s preferences across devices and channels. Furthermore, identity resolution can help brands comply with consumer privacy laws. Despite the implementation challenges, identity resolution is essential to help businesses and marketers achieve their goals.

The problem with using cookies and other traditional data to manage identity is that they need more transparency and an accurate view of customer behavior. Identity resolution can solve this problem by combining company data with information from other sources and providing an accurate view of a customer. It also offers the benefit of improving customer retention and increasing lifetime value. This approach allows brands to personalize offers to increase consumer engagement and build loyalty.

Read more: Promoting Your Construction Business Online

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