How Identity Resolution Platforms Can Drive Better Marketing

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Customers are more likely to stay loyal when recognized at every touchpoint. Identity resolution is the most important part of data-driven marketing strategies in a world focused on privacy.

Identity resolution is a strategic must for marketers today. Using first-party data becomes essential as privacy regulations become more stringent and cookies go extinct.

What is Identity Resolution?

Gartner defines identity resolution as:

“The discipline of recognizing people across channels and devices, and associating them with information used for marketing and advertising.” It employs a variety of tools, techniques, and data.

This customer information includes all digital, telephonic, virtual, mobile, and physical contact channels. It could also include any new touchpoints that may appear in the future.

Typically, these touchpoints comprise an individual’s terrestrial, device, and digital identities. Identity resolution will leverage all sorts of identity-focused data about the target market.

The exercise of Identity Resolution includes:

  • Linking identifiers across all of a customer’s channels and devices and tagging and tracking users across channels.
  • Creating 360-degree customer profiles that can be activated throughout your technology stack while addressing consumer privacy preferences and compliance

What Does Identity Resolution Do?

Identity resolution helps firms create personalized campaigns to identify customers’ unique digital identities. Businesses compile fragmented datasets that indicate the customers’ activity as they navigate various devices.

Identity resolution software combines all the data from first, second, and third-party sources into a full business customer profile.

These tools enable advertising and marketing teams to learn more about how each customer behaves across all channels. They can then deliver personalized messages through websites, targeted ads, email remarketing, and other methods. Identity Resolution tools can:

  • Store customer information from first, second, and third-party sources.
  • Make identity graphs and use data points from different devices and channels.
  • Correlate different types of information to create a complete customer profile.

These tools use complex algorithms and data-matching methods to collate this data. Companies can gather a lot of knowledge about their customers by using this single source of truth. They can observe their preferences, demands, and engagement across all channels.

The Importance of Identity Resolution for Marketers

Till very recently, most brands have relied on third-party cookies to identify, understand, and reach their target audiences.

As the common identifiers or third-party cookies die out, marketers have been scrambling to figure out what “cookie less advertising” will look like.

Brands without a backup plan lose visibility into customer interactions. With it, they will lose the ability to accurately and consistently reach these customers with focused brand messaging.

However, highly targeted and personalized marketing is still possible. All it takes is a strong first-party data strategy and secure identity resolution platforms.

Identity resolution platforms help marketers to:

Create a complete holistic customer persona:

Simply put, a collection of all data about the customer enables marketers to put together a complete, 360-degree view of their target customer. Since this data is taken from varying touchpoints, it provides a completely clear view of customer behavior and preferences. This enables marketers to create more effective marketing communication strategies. It may even help them to offer newer brands across newer fields, that they may not currently hold.

Also read: How Marketers Can Navigate Identity Resolution for Enhanced CX

Data- driven personalization

Identity resolution data can enable marketers to create much more personalized strategies and solutions. their campaigns can now target the specific customer data set, and offer them customized services, products, and messages. The knowledge of their entire preferences and demand lifecycle arms marketers with a sure shot for converting them.

Ability to gather marketing effectiveness measurements

To refine and customize a campaign or a marketing message, it is important for marketers to be able to measure the effectiveness of their strategies. this also helps them to make more effective strategies for future campaigns. Identity resolution is critical for this exercise. It offers key performance indicators at a granular level.

Marketers can then optimize their strategies in real-time. they can identify the best channels to invest in, and the most effective messaging to craft. This helps in optimizing resource costs as well. Along this path, they can deliver the highest RoI for the marketing budgets.

Create a unified experience across various channels:

Uniform communication strategies across channels deliver consistency to the brand. Identity resolution empowers marketers to craft hard-hitting messaging across various channels, consistently.

Enable Stronger Adherence to Compliance Regulations

IR platforms deliver specific customer information. in keeping with privacy laws globally, they also enable marketers to comply with these regulations, to avoid issues at a later date.

This is enabled when the identity resolution tools are used in a customer data platform (CDP). There is complete alignment of customer consent in a modern CDP, and hence the company can safely deliver compliant data points for marketing.

Their consent can be given through several channels, and once this data is used for analytics, the insights are complete as per regulations like GDPR.

There is complete visibility to where consent has been given. Marketers can then rest assured that their customized outreach is fully compliant and will not create privacy issues later on.

Types of Identity Resolution Software

Companies can gather a lot of knowledge about their customers using this single source of truth. They can observe their preferences, demands, and engagement across all channels

There are two types of Identity Resolution tools:

Warehouse-native:

As the name suggests, this tool performs identity verification and resolution within the existing data warehouse.

Since the data is stored in a single database, the enterprise has full control over how the data is organized. Since the data is stored in a single database, the enterprise has full control over how the data is organized.

These tools provide more flexibility by create identity resolution algorithms using any of the data. These tools don’t store any data because they only run on top of your database software layer.

Black-box:

These solutions function independently from the data stack as distinct entities. They don’t have as much data because they can only see clickstream data about people’s behavior.

Changing the identity resolution algorithms is very hard because they are based on a model that says one size fits all.

This makes it hard to address and adapt to specific use cases on the fly.

Brands don’t own the identity graph with a black-box solution because it lives outside the existing data infrastructure.

Conclusion

The Identity Resolution market is growing steadily, as omni-channel marketing becomes the norm.   Linking identities correctly will become even more important as the digital world becomes more complex.

The global identity resolution software market size which stood at USD 1151.1 million in 2021, is expected to reach USD 2304.5 million by 2028, says the Business Insights report Identity Resolution Software Market-105139.

With strong identity resolution, fragmented data can be turned into linked profiles that show all-encompassing insights. Streamlined experiences take the place of silos.

However, identity resolution tools that are not calibrated well or used properly can do more harm than good. The issue is about data hygiene, and in many cases, bad data is the biggest culprit. Profiles that aren’t complete can throw off personalization efforts. Data that isn’t connected across channels gives you a partial picture.

In addition to data hygiene, it is crucial to select the most suitable identity solution designed for marketing. identifying an IR platform that aligns with business and marketing goals, is critical.

Look for flexible entity matching, an identity graph that is continually updated, source-by-source logic that can be modified, and channel-spanning connections.

With efficient Identity resolution tools, marketers can have a fail-safe tool for outreach that will make an impact on the market.

Check Out The New TalkMartech Podcast.

Swapnil Mishra
Swapnil Mishrahttps://talkmartech.com/
Swapnil Mishra is a global news correspondent at OnDot media, with over six years of experience in the field. Specializing in technology journalism encompassing enterprise tech, marketig automation, and marketing technologies, Swapnil has established herself as a trusted voice in the industry. Having collaborated with various media outlets, she has honed her skills in content strategy, executive leadership, business strategy, industry insights, best practices, and thought leadership. As a journalism graduate, Swapnil possesses a keen eye for editorial detail and a mastery of language, enabling her to deliver compelling and informative news stories. She has a keen eye for detail and a knack for breaking down complex technical concepts into easy-to-understand language.

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