Identity resolution looks at the data from a database and attempts to match the data to identifiers like device IDs, email addresses, phone numbers, or a cookie. It takes the data that has been collected from various sources and touchpoints and consolidates it down into a single profile. Brands can use the data to build an omnichannel view of their consumers and create a truly personalized, customizable customer journey with relevant messaging, product recommendations, and offers deployed across channels like Facebook, Google, Twitter, Pinterest, Youtube, connected TV, and more. 

90% of consumers say the amount they spend or shop with a retailer is impacted by how consistently the retailer delivers a personalized shopping experience. (source)

Cross-channel & Cross-device Personalization.

Personalization is powerful; it's the holy grail of product loyalty and drives growth when done the right way. According to Statista, personalization has become one of the most indispensable marketing strategies among industry professionals in the United States. And the use of personalization among marketers is significant; 78% of marketers used personalization in their email marketing campaigns, 31% used personalization in mobile apps, and 56% used personalization to enhance their website experience.

Emerging technology like customer data and analytic platforms provide marketers with insights that enable them to personalize every point of interaction across more channels and at any stage in the customer journey. But to scale it, companies need first to understand how they currently collect data.

How you collect data matters more now than ever.

Companies have a smorgasbord of ways to collect data, and until now, third-party cookies have been the most common method of capturing consumer activities, but it's quite a laborious process. Tracking activities across websites, social channels, and paid ads and breaking down the data using various technologies and spreadsheets ultimately leads to inefficiencies and data discrepancies. In other words, poor data quality and when used to run marketing campaigns, the data can yield wildly different results.

The problem with third-party cookies

The website or the domain you are surfing doesn't create the third-party cookie. The site owner (or brand) uses a third-party solution that provides them with a tracking pixel or tag that they place on their website to track activities on their site and when you leave their site. Any website that loads the third-party server's code can access the third-party cookie. 

For example, if you visited Zappos and browsed a specific item, there is a good chance they dropped a cookie in your browser so they can target you with ads when you exit their site. Ever wonder why you see a company ad following you everywhere online? This is because the website is using the data collected from a third-party cookie to retarget you across different online channels.

Cookies can benefit consumers by serving them relevant ads of interest, but the third-party cookie has a significant drawback: privacy invasion. Cookies allow marketers to track every website the consumer visits and collects a lot of details about each individual. The data collected can be accessed by anyone who loads the third-party's ad server like Adroll or Google (who is deprecating third-party cookies by the end of 2023) and presents a security risk. Software companies allow outside parties to access information like a name, address, or even your credit card information, they unintentionally put your personal information at risk, and you are unaware of who the parties are. 

Additionally, if your credit card is stored in your browser and used for auto-fill, you increase the risk of hackers gaining access through phishing sites. Phishing sites have hidden elements that can only be found by looking at the page’s script. Often the Autofill on your browser falls prey to these functions and adds personal information on the site without your permission.

First-party cookie approach and identity resolution

41% of marketers believe their biggest challenge will be their inability to track the right data.

With Google phasing out third-party support and the growing privacy concerns mentioned above, marketing teams will need to focus on collecting first-party data. Data like demographics, consumer interest, website behavior, app activities, shopping patterns, and purchasing history will be tracked with a first-party cookie and collected from the company's owned media touchpoints (social media, email, website, other).

Next, you'll need to connect multiple identifiers collected from the various touchpoints across different channels and devices to build a unified view of each customer's engagement with your brand, also known as Identity Resolution. When you combine marketing and attribution with identity resolution, you can build a 360-degree single view of your customer. This will give you a full understanding of the demographic and behavioral attributes that make up each profile and know exactly where to allocate your advertising dollars for optimal engagement and conversions. 

According to a Winterberry Group forecast, marketers in the US expect to collectively spend $2.6 billion on identity resolution programs and technologies by 2022, a 188% increase over the past four years. 

First-Party Data Solutions are on the rise; they eliminate data challenges for teams across the board by acting as an extension of other tools and systems that currently exist within your organization. People engage differently depending on the channel and their device, and they expect frictionless and seamless interactions from brands. 

LayerFive is a Unified Customer data platform with Identity Resolution and Data Compliance. We help companies unify their data, gain deeper insights, and comply with privacy regulations. Contact us here to schedule a demo and explore how you can leverage your own data.