Think about it; How many devices have you used in the past 24 hours? Your phone, personal laptop, workplace desktop, maybe even a smart speaker at home or virtual assistant (Alexa, Google, Siri, Bixi etc.).

Today’s consumers use different devices to log in to work, access social media, browse websites, and access personal email accounts. According to Google, 90% of consumers move between devices to complete a task.

How do you sort through all these touch-points to create a unified customer profile?

Enter Identity Resolution.

A customer’s identity resolution is the Holy Grail for personalized marketing, especially in today’s competitive business environment. But what is identity resolution, and why do you need it for your business?

This guide will delve into the crux of identity resolution and explain how it helps with personalized marketing. We’ll also explain how it works and provide some use cases to help you visualize it in real life and what it can do for your business. Let’s dive in!

What Is Identity Resolution?

Let’s start with the basics. Identity, in this case, means identifying a customer based on their attributes and purchase behavior. At its most basic level, identity is the ability to recognize a person, no matter where they are — online or offline.

According to the 2020 IAB’s State of Data report, identity entails recognizing and engaging customers across different touchpoints.

Based on this definition, identity resolution refers to the process of creating a unified profile of a consumer based on data gathered across devices via the orchestrated journey of the customer. Combining the data gathered from different sources into one pool allows you to get a complete picture of a person.

However, this data has been anonymized, and the marketer may not have any identifying info such as the street address, location, phone number, email, or even names. They may also not know the customer’s preferences, likes, or even their gender.

And this is where ‘resolution’ comes in. In this case, resolution entails compiling all this information into one unique profile.

For instance, the customer may be accustomed to using one browser/device to research products but a different device for online shopping. The same individual may have a different device, such as a tablet, with additional information about what they like doing in their free time, the movies they enjoy watching, or things they search for.

Looking at one of these devices will only will give you one piece of the puzzle.

However, if you combine them, you can get a better idea of who the individual is, including their likes, preferences, purchase history, etc. Simply put, it gives you a 360-degree view of the customer. You can then use this information to create a unified customer identity.

Hence, identity resolution can be defined as the process of connecting multiple identifiers to create a single, unified customer profile.

How Does Identity Resolution Work?

Identity resolution helps you join the dots across all touchpoints — online and offline — where customers engage with your brand.

For it to work, marketers rely on identity resolution platforms to combine these disparate data sources to provide a 360-degree view of the customer across devices and platforms. The process starts with the identification of all of your first-party data sources.

This could include data from your customer relationship management (CRM) system, email platforms, customer database and in future the technologies like Metaverse etc. The data is then resolved against an identity graph — a database of all identifiers matched with customer profiles.

The identity resolution process uses the ID graph to link pieces of information to an individual, learn more about the individual, and reach them across platforms and devices. Here’s an example of how it works.

Let’s say John provided her email address on your site in exchange for a coupon. However, he ended up physically visiting your store to make the purchase. In this case, the identity graph will show the connection between John’s email and her credit card details, which will allow you to resolve the interaction between the two touchpoints into one customer.

Then, the identity graph will provide additional information about John, including his purchase history (with your brand and other brands), personal interests, apps he uses, websites he frequents, and more.

With this information, you can reach John in more places, customize your content to his preferences, and recognize him immediately when he comes back.

The Identity Resolution Process

The process of identity resolution consists of three main steps.

Step 1: Collect and Upload Data

The first step of the identity resolution process involves data collection. You collect data from various online and offline sources and upload it to match with digital identifiers.

Step 2: Connect to an ID graph

Next, customer data is correlated with known online and offline identifiers.

The identity graph matches identities to identifiers, removing redundancies and providing a distinct customer ID or profile.

Step 3: Activate

The last step is to activate the customer ID. Connect the customer profile to ad platforms, analytics tools, media partners, and other relevant endpoints to suit your business needs. Now, every time the customer interacts with your brand, you’ll be able to recognize them based on their profile, which you already have.

Identity Resolution in Real Life

Identity resolution has gained traction lately due to its ability to unify customer data, leading to a more personalized customer experience.

Many companies, including reputable brands like Starbucks and Finish Line, are using it to transform the customer experience.

Take Starbucks, for example. The company uses Amperity for customer 360 identity resolution to create a more holistic customer experience. Earlier, they had a lot of disparate data around known loyal customers and other brand loyalists they couldn’t identify.

Identity resolution helps them identify unique customers, reconcile customer data, and personalize their marketing with more targeted campaigns, including the food and beverages the company can offer to them based on their identities.

Through identity resolution, the company is able to offer “proximity alerts” to their app users to promote personalized offers when their customers are in the vicinity.

Similarly, Finish Line Inc, the American shoe giant, uses LiveRamp identity stitching solutions across its paid search and shopping campaigns to identify customers who transacted online and in-store. It then sends them personalized offers based on their behaviors.

The Importance of Identity Resolution for Your Business — 3 Use Cases

Identity resolution can revolutionize your marketing by giving you a 360-degree view of your customers. By implementing an identity resolution strategy, your business will benefit from:

1. Increased Conversions

Identity resolution gives you insights into who is actively browsing your website. And when you can identify your customers, you can personalize content to their tastes based on their preferences and interactions with your brand.

No transaction history with your company? No problem.

Identity resolution can help you determine the best action to take for new visitors.

CookieLess World, No problem — You still have a solution

For example, assume an anonymous profile shows that the visitor is in the market for fitness clothing. Show them promotions on sports shoes and other workout gear instead of ads for unrelated content. This often leads to increased conversions and sales.

2. Improve Retention and Customer Loyalty

A 2020 study by Walker revealed that 86% of customers are willing to pay more for a better customer experience. Implementing an identity resolution strategy allows you to know your customers better to provide them with better experiences. This ultimately increases the likelihood that they’ll return.

Let’s say Emma visited your website for the first time and purchased a pair of kid’s shoes, size 3Y. This shoe size is typically for kids aged 8–9 years. Eleven to 12 months later, reach her with offers for size 4Y, ideal for a 10-year-old kid. This kind of personalized experience increases loyalty and customer lifetime value.

3. Reduced Wasted Ad Spend

Duplicate records and undefined audiences mean your message and advertising resources are wasted on the wrong audience.

Unifying your prospects’ and customers’ data helps you identify individuals across channels, platforms, and devices. This process eliminates duplication and waste by ensuring you’re not targeting the same individual multiple times.

It allows you to define your audience and target only individuals who are likely to convert and send them content that resonates best.

For example. Let’s say you run a car dealership business and have a database full of prospects who have visited your business in the past 12 months. By uploading this data to the ID graph, you can determine which of them:

· Are in the market for a used car

· May need a spacious vehicle

· Are in the market for vintage cars only

If Joe has a 1997 classic car that is no longer functional, show him ads for the best classic or vintage cars you have.

Identity resolution will show the websites and kind of auto dealerships he visits, and you can draw insights on the kind of vehicle he likes from that. You can make sure your message shows up when Joe visits these sites and related channels.

Wrapping Up

Identity resolution refers to the process of connecting multiple identifiers to create a single, unified customer profile. This allows marketers to have a 360-degree view of the customer and create personalized content based on the customer’s preferences.

By implementing an identity resolution strategy, brands can benefit from better targeting, resulting in more conversions, improved retention, customer loyalty, and reduced wasted ad spend.

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Sidheshwar Chauhan is a MarTech Executive with over a decade of experience in spearheading marketing transformations and driving significant growth through strategic innovations and partnerships. Proven expertise in integrating AI and advanced data analytics to enhance customer engagement and operational efficiency, leading high-impact digital solutions across multinational landscapes and critical initiatives for large brands.