Identity resolution is the science of connecting the growing volume of consumer identifiers to a person as they interact across channels and devices. It helps create a coherent, omnichannel view of the consumer, allowing brands to provide relevant messages throughout the customer journey. Identity resolution refers to the anonymous profile of a consumer that is collected on all devices. For example, if you combine data collected from laptop browsers, mobile phones, email subscriptions, televisions, and offline purchases into a single set, you could get a very complete picture of a person.
However, all of this data has been anonymized so that the seller does not know any identifying information, such as name, email address, telephone number or postal address. More generally, they might know the gender, age, location, and things that a person likes to read online, shop, etc. Many people mistakenly believe that CDPs resolve identity (and many CDPs allow them to believe it). The most positive thing is that identity resolution allows marketers to offer a unified shopping experience to potential and potential customers on all platforms, from laptops, tablets or mobile devices to browsers, text or voice messages, and physical locations.
Some identity specialists make a distinction between probabilistic and anonymous identities. Achieving a single, unified view of the customer through identity resolution allows us to understand each customer more fully to provide them with better experiences and, ultimately, increase the likelihood that they will return. Many providers of identity resolution platforms follow the advertising industry guidelines of the Digital Advertising Alliance (DAA) or the Interactive Advertising Bureau (IAB). Probabilistic identity resolution allows you to reach a lot of people, but if you sacrifice accuracy, they may not be the people you want to reach.
Some providers use hybrid approaches to identity resolution, which attempt to compensate for deterministic and probabilistic weaknesses while capitalizing on their advantages. Forrester found that most high-level executives overvalue the accuracy and persistence of their marketing organization's customer identity. However, highly segmented and personalized marketing is still possible; only a strong first-party data strategy and a privacy-focused identity resolution solution are required. Identity resolution has become fundamental to successful marketing in addition to being essential to complying with consumer privacy laws such as the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR) of the European Union.
Identity resolution is becoming popular mainly because consumers are increasingly concerned about data privacy. There are no assumptions or inferences about who a person is or what identifiers belong to them. Identity resolution is essential to meaningfully engage with consumers on all screens in a way that respects privacy.