Identity resolution is a powerful data management process that links a customer's online behavior to their unique identity. By collecting different sets of data and identifying non-obvious relationships, identity resolution is a technique used to recognize customers and link multiple identities of a single person, such as different names or genders, with a single person. This process has many applications in the real world, such as when people apply for loans and credit cards. The first step in identity resolution is probabilistic matching, which often uses IP addresses, device identifiers and advertising identifiers (read more about the next version of iOS and its impact). To create a person's digital identity, companies must use CDPs (customer data platforms) to collect and organize data from internal and external sources to create a single customer profile or record.
With this information, 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 is used in many industries, including financial services, retail and transportation. It is not intended to replace other intelligent technology solutions, such as CDPs (customer data platforms), but they are very complementary tools. In the financial services industry, identity resolution is used to verify customer data, link customer data between different companies, and automate processes. 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. Without identity resolution, companies would have two different customer profiles in each of these cases, probably stored in two silos.
With the imminent death of the cookie, companies must invest in their own identity resolution solution to stay ahead of the curve. Probabilistic identity resolution provides different levels of statistical confidence depending on the models used in the process. It's important to note that CDPs do not resolve identity (although many CDPs allow them to believe that).