Identity resolution is a powerful tool for businesses to gain a better understanding of their customers and provide them with personalized experiences. It is a process of connecting various data points from different touchpoints, platforms, channels, and devices to create an individual, persistent, and addressable profile. With identity resolution, businesses can identify customers across multiple channels and devices, allowing them to deliver more relevant messages and offers. The process of identity resolution begins with deterministic matching, which compares customer records looking for equality between identifiers such as email, phone number, or username.
This approach works best when first-party data is easily available. An identity graph is then created, which is a database of all the identifiers that match privacy-protected customer profiles. It can be thought of as billions of pieces of contacts (names, device identifiers, website visits, transactions, etc.) with connections between them. A group of fragments and the connections between them represent a person in the graph. With an identity graph in place, businesses can reach every person wherever they are on the Internet using mobile ad identifiers, encrypted emails, postal addresses, social networks, etc.
They can then send highly relevant messages to these audiences through channels of their choice such as data management platforms (DMPs), demand side platforms (DSPs), media partners, etc. Before jumping fully into an identity resolution program, it's imperative that businesses gather all their customer data in one place with a customer data platform (CDP). This will help them understand the types of customers interested in their products and have a strategy to attract different customer segments. Identity resolution is also riddled with debates about the best ways to respect a user's privacy and offer personalized information at the same time. Identity resolution software integrates consumer identifiers across all channels and devices in a precise, scalable and privacy-compatible way to create an individual, persistent and addressable profile. This allows businesses to understand each customer more fully and provide them with better experiences.
There are two main types of identity resolution: deterministic matching and probabilistic matching. Deterministic matching looks for exact matches between customer records while probabilistic matching looks for similarities between records. The number of providers offering identity solutions is growing rapidly and everyone has their own unique ways of managing identity. Identity resolution is becoming popular mainly because consumers are increasingly concerned about data privacy. Therefore, it is important to implement an identity solution that can provide true identity over time. With the imminent death of the cookie, companies must invest in their own identity resolution solution to stay ahead of the curve.
Identity resolution is the key to unlocking a more detailed understanding of potential customers and providing them with better experiences.