Today, 88% of marketers believe identity resolution solutions and first-party data have become more crucial than ever before. With Google phasing out third-party cookies by the end of 2024, the need for brands to rely on their data is growing. But gathering first-party data is just one part of the equation. To truly benefit from this wealth of information, brands need to implement identity resolution.
Identity resolution refers to the process of linking customer data collected across various channels and platforms to specific individuals. Without it, businesses have an incomplete picture of their customers’ interactions. Let’s dive into how identity resolution can benefit your marketing efforts and take your customer relationships to the next level.
1. Create a Seamless Multi-Device Customer Journey
Most brands today use a multi-channel marketing strategy to reach customers across different devices. This is necessary because customers switch between smartphones, laptops, and tablets frequently. They may see an ad on their phone, browse the product on their laptop, and make the purchase later from a tablet. To stay connected with them throughout this journey, brands need to understand where customers are and how they move between platforms.
Identity resolution software helps brands track these movements, providing a comprehensive picture of how customers are interacting across devices. By linking this activity to specific individuals, businesses can provide a more seamless experience. This ensures customers feel recognized, regardless of the platform they are using, which ultimately improves customer satisfaction.
2. Define and Map the Customer Journey
Understanding how customers interact with your brand is essential for improving marketing strategies. Identity resolution tools allow you to build a 360-degree view of each customer. This includes everything from which ads they interacted with to what products they viewed or purchased.
Using identity resolution solutions, brands can create what’s known as an “identity graph.” This graph connects customer identifiers, such as email addresses or phone numbers, and links them to specific behaviors and interactions. For instance, if a customer clicks on an email ad and later purchases an item in-store, identity resolution can link these actions back to the same person.
With this detailed information, businesses can identify which touchpoints were most effective and where customers dropped off. This data helps marketers fine-tune their campaigns and allocate resources to the channels that drive the best results.
3. Personalize Customer Experiences
In today’s market, personalization is no longer optional. Studies show that 71% of consumers expect personalized experiences, while 76% become frustrated when they don’t get them. With identity resolution, brands can personalize everything from targeted ads to website content based on each customer’s preferences and behavior.
For example, if a customer adds a product to their shopping cart but doesn’t complete the purchase, identity resolution platforms can trigger personalized reminders via email or social media ads. These tailored interactions help bring customers back to your site and increase the chances of a purchase.
By leveraging identity resolution vendors, businesses can create a fully customized experience across all customer touchpoints. This goes beyond merely knowing what the customer likes; it’s about guiding them through a personalized journey that enhances their overall brand experience.
4. Improve Customer Interactions
Brands often face the challenge of knowing when a customer interacts with them and through which channel. Since it’s impossible to predict which marketing channel a customer will use, identity resolution can fill the gap by recognizing each individual’s interactions and ensuring consistent engagement.
A good example of this is Starbucks, which uses proximity alerts to notify customers about offers and promotions when they’re near a store. Using identity resolution tools, your brand can similarly identify when customers are engaging with your ads, website, or store, and deliver timely and relevant messages to maintain engagement.
5. Optimize Marketing Spend with Attribution
Attribution refers to understanding which marketing activities or channels contributed to a conversion. It’s often difficult to track the effectiveness of different touchpoints, especially when customers engage with multiple ads across platforms.
Identity resolution solutions simplify attribution by linking customer actions, such as clicking on an ad or signing up for a newsletter, back to specific campaigns. This allows marketers to see which ads or messages were most effective in driving conversions. As a result, businesses can allocate their marketing budget more efficiently, investing in the channels that deliver the best results.
6. Detect and Monitor Unusual Customer Activity
Online businesses face the constant threat of fraud, whether it’s through account takeovers or unauthorized transactions. Identity resolution software helps brands monitor for unusual customer behavior by comparing current actions to historical activity.
If a customer’s account shows unexpected changes, such as logging in from a new device or attempting a suspicious purchase, identity resolution can trigger an alert. This helps businesses mitigate risks and protect both their customers and their reputation.
By offering this level of protection, brands can build trust with their customers. This is particularly important in industries where security and privacy are paramount, such as financial services or e-commerce.
7. Increase Customer Loyalty and Retention
A great customer experience is one of the strongest drivers of customer loyalty. In fact, 86% of buyers say they are willing to pay more for a better experience. Identity resolution platforms help brands deliver that experience by enabling them to understand their customers on a deeper level.
By knowing more about individual preferences and behaviors, brands can offer relevant recommendations, timely promotions, and personalized content that resonates with each customer. This creates a positive feedback loop, where customers are more likely to return after a good experience, driving both loyalty and long-term retention.
Identity Resolution vs. Entity Resolution
When discussing identity resolution, it’s important to differentiate it from entity resolution. While the two terms are often used interchangeably, they refer to different processes. Identity resolution focuses on identifying and linking data to specific individuals. In contrast, entity resolution involves merging data from different sources to create a unified record of a single entity, which could be a person, a product, or even a company.
For marketers, identity resolution is key because it helps paint a complete picture of the customer journey. However, combining both identity and entity resolution strategies can further enhance a brand’s ability to understand and engage its customers.
Streamlining Identity Resolution with EasyInsights
Implementing identity resolution may seem overwhelming, but there are many identity resolution vendors offering tools that simplify the process. Solutions like EasyInsights can help your brand leverage first-party data without requiring a complete overhaul of your tech stack.
By integrating identity resolution software into your existing systems, you can start reaping the benefits of customer data insights and deliver superior, personalized experiences.
