Successful identity resolution requires data accuracy, a growing challenge in our everything-digital world.
Marketers have begun to recognize the substantial benefits of data-driven marketing, implementing techniques centered around putting customer data to work. Around 75% of marketers believe they’ll spend more money on ad tech, martech, and programmatic tools in 2020, according to a report from Forrester and Neustar.
A successful data-driven marketing strategy depends on tracking data points across channels and devices. The biggest challenges, however, continue to be accurately identifying customers across these channels and obtaining the right data.
Effective identity resolution means you’re able to recognize customers by the devices they use and the online behavior they exhibit, giving you a complete picture of who these individuals are and what they care about. This is really the first step in ensuring that you make real, human connections beyond the data signals you gather.
Deterministic vs. probabilistic approaches
Deterministic identity matching refers to pairing identifying information, like a name or email address, to multiple devices. This is a more direct approach, since the email address, for example, is being used on the different devices being matched.
Probabilistic is a bit more complex and involves making inferences and using algorithms that predict the links between devices. For example, patterns can be detected via machine learning techniques that suggest the same customer is using multiple devices.
In other words, deterministic is more explicit, and probabilistic is more implicit. Both methods have pros and cons.
Deterministic identity matching provides direct links, so the view of the customer is accurate and cross-channel. This is considered the most precise identity resolution approach. But sometimes problems arise when these links are incorrect due to friends and family members using the information of others — for example. using a friend’s email address to sign into a subscription service. Neustar research has shown that up to 50 percent of deterministic linkages are incorrect or fraudulent. Another drawback is that deterministic data is fairly narrow.
A pro of the probabilistic approach is it has the potential to identify much more customer data. This strategy links devices and identifiers based on algorithms, so more links can be made with high confidence. Instead of just analyzing one-to-one matches like deterministic matching, probabilistic uses a wider variety of data. However, this method is limited to online data, and it may not always be as accurate as deterministic.
A hybrid approach to identity resolution
Because both methods have their shortcomings, some marketers have combined them when creating identity graphs. This hybrid approach benefits from the accuracy of direct linkage with more potential to scale customer data.
This hybrid approach is one solution to creating a better identity resolution strategy and can lead to more accurate, consistent customer data that will help build out your marketing plan. Just make sure the new identity graph combines both methods instead of using individual graphs simultaneously.
Using an identity resolution solution
Using the services of an identity resolution platform increases the accuracy of data and thus marketing efficiency. With one central identity graph and portal for customer data, marketers can experience higher conversion rates and increased ROI.
Integrating an identity graph into your marketing plans improves decision-making since campaign choices can be based on actual customer data. Better targeting comes with more accurate identification and audience segmenting.
The BDEX approach to identity resolution
BDEX provides the data solutions you need to improve your identity resolution strategy. We help you identify the real person behind the data, creating a holistic view of who that person is. We filter through billions of real-time data signals to identify which customers are exhibiting behaviors that indicate they’re ready to buy. These signals are then matched to data on our BDEX Identity Graph.
Our deterministic approach ensures that customers are accurately matched across their devices. We have more than 800 million email MD5-MAID-IP matches, so our data is anything but limited. We provide the IDs to you in real-time so you can match instant connections, and you’ll only have to pay for the IDs that are returned. No licensing is required since our identity resolution service is subscription-based.
With identity resolution from BDEX, your data will be accurate and complete. This cross-device matching service helps make real human connections with your audience, allowing you to understand the individuals behind data signals.
The BDEX Data Exchange Platform (DXP) is the largest data platform in the U.S., with more than 6 billion unique IDs, 5,500 data categories, and over a trillion data signals. To learn more about all of our data solutions, including our Data as a Service offering, Omnisource IQ, get in touch with the BDEX team.