Identity resolution software is a type of customer data platform designed to create a unified customer profile by linking data across different sources and channels. It works by using algorithms and machine learning to match customer records from various touchpoints and confirm they belong to the same individual.
The goal of identity resolution is to stitch together disparate data on a customer from sales interactions, website visits, mobile apps, customer service calls, and more. By resolving customer identities, companies can gain a single unified view of each customer and their journey across channels over time. This enables more coordinated and personalized brand experiences.
At its core, identity resolution software uses statistical models to compare attributes like names, addresses, phone numbers, email addresses, device IDs and more to determine matches with a high degree of confidence. The algorithms associate records that refer to the same person, while avoiding false positives. This allows marketers to de-duplicate their customer data and create golden record profiles containing the most accurate and complete information on each customer.
How Identity Resolution Software Works
Identity resolution software works by matching customer data across different systems and channels to create unified customer profiles. The software links together multiple records that belong to the same individual customer, even if the records contain slight variations in personally identifying information like names, addresses, phone numbers, and email addresses.
The identity resolution process typically involves:
- Collecting customer data from all available sources, both online and offline. This may include your CRM system, website, mobile app, call center logs, email marketing platform, point-of-sale system, and more.
- Standardizing the data so it is formatted consistently. This makes it easier to match across sources.
- Comparing the identifying information across records to identify duplicates. The software uses both deterministic rules and probabilistic models to assess the likelihood that two records represent the same customer.
- Linking and merging duplicate records to create unified customer profiles. A unique persistent ID is assigned to each profile.
- Maintaining the unified profiles by routing all future transactions back to the profile. New data updates the profile rather than creating new duplicates.
- Providing a dashboard and analytics to continuously track and refine the identity resolution process.
The end result is a single source of truth customer database that has all data linked to the right customer identities. This eliminates duplicate and fragmented data issues that lead to poor customer experiences.
Key Capabilities
Identity resolution software provides several key capabilities that enable businesses to get more value from their customer data:
Unified Customer Profiles
The core function of identity resolution is to link customer data from disparate sources and channels to create unified customer profiles. This gives a comprehensive 360-degree view of each customer by combining data from your CRM system, website, mobile apps, social media, and more.
Identifying Duplicate Records
As data volumes grow, businesses often end up with duplicate or overlapping customer records in their systems. Identity resolution uses matching algorithms to identify these duplicates and merge them. This eliminates redundant data and ensures you have a single accurate view of each customer.
Data Enrichment
Identity resolution supplements your existing customer data with additional information from both internal and external sources. This could include demographic data, purchase history, social profile data, and more. Enriched customer profiles enable more personalized messaging and experiences.
Analytics on Unified Data
With all customer data unified in a single view, identity resolution systems allow you to easily analyze that data for actionable insights. You can segment customers, calculate lifetime value, identify trends, and more to optimize your marketing and operational strategies.
Benefits of Identity Resolution
Implementing an identity resolution solution provides numerous benefits that lead to better business outcomes:
More accurate customer insights – By eliminating duplicate records and merging data from across channels, companies gain a single accurate view of each customer. This unified profile provides far greater insight into customer behaviors, needs and preferences compared to fragmented data.
Personalized experiences – Armed with a 360-degree customer view, companies can deliver highly tailored messaging, product recommendations and experiences. Identity resolution enables true one-to-one personalization at scale.
Reduced marketing waste – Without identity resolution, marketing messages and promotions may be sent to duplicate profiles or mis-targeted due to inaccurate data. Identity resolution dramatically cuts down on wasted spend by ensuring you are only marketing to real, unique individuals.
Improved customer satisfaction – Customers expect companies to know them and understand their needs. With identity resolution providing complete customer profiles, companies can meet and exceed rising customer expectations. This leads to higher satisfaction, engagement and retention.
Implementing Identity Resolution
Implementing identity resolution software takes thoughtful planning, but brings tremendous rewards. The key steps include:
Evaluating Your Needs
Take stock of your existing customer data landscape. Look at your goals for unifying and consolidating data to get an accurate customer view. Consider factors like volume of data, number of sources/channels, real-time needs and more. This will shape your solution requirements.
Integrating Systems
Work closely with your identity resolution vendor to map out integration with existing systems like your CRM, marketing automation platform, customer databases and more. APIs and connectors make it seamless to pass data between the identity resolution engine and other martech stacks. Real-time sync is ideal.
Data Preparation
Cleanse, standardize and deduplicate incoming customer data before processing through identity resolution algorithms. This improves match rates. Ongoing data hygiene processes also help.
Running and Tuning the Engine
Once implemented, monitor identity resolution results. Adjust confidence thresholds and match rules as needed to improve accuracy. Feed back learnings to the engine to refine its algorithms over time.
Analysis and Activation
Unified customer profiles are just the beginning. Further analyze this data to segment audiences and power personalized marketing initiatives, tailored customer experiences, and more impactful consumer engagements across every channel.
With the right solution and implementation approach, identity resolution can transform disparate data into a unified customer intelligence asset. Work closely with experts and conduct due diligence to select the ideal platform for your needs. Then meticulously map out integration and rollout plans. With thoughtful preparation, identity resolution delivers tremendous ongoing value.
FAQs on Identity Resolution Software
What is Identity Resolution Software?
Identity resolution software is a customer data platform that creates unified customer profiles by linking data across various sources and channels. It employs algorithms and machine learning to match customer records from different touchpoints, offering a comprehensive view of each customer’s journey.
How does Identity Resolution Software work?
The software matches customer data from different systems and channels to build unified profiles. This process involves data collection, standardization, comparison for identifying duplicates, and merging these records. A unique persistent ID is assigned to each unified profile, which is continuously updated with new data.
What are the key capabilities of Identity Resolution Software?
Key capabilities include creating unified customer profiles from disparate data sources, identifying and merging duplicate records, data enrichment by adding information to customer profiles, and enabling advanced analytics on the unified data for actionable insights.
What benefits does Identity Resolution offer?
Benefits include more accurate customer insights, personalized experiences, reduced marketing waste, and improved customer satisfaction. It enables one-to-one personalization at scale, ensures marketing efforts target unique individuals, and meets customers’ expectations for personalized interactions.
How can you implement Identity Resolution Software effectively?
Effective implementation requires evaluating your data landscape, integrating systems, preparing data, and continuously tuning the identity resolution engine for accuracy. Analysis and activation of unified profiles further enable personalized marketing and improved customer experiences.
What challenges might arise with Identity Resolution Software?
Challenges include ensuring data accuracy, managing privacy and consent issues, integrating disparate data sources, and maintaining data hygiene. These challenges can be mitigated with thorough planning, robust technology solutions, and continuous data management practices.
Does Identity Resolution Software comply with privacy regulations?
Compliance depends on the software’s features and the organization’s use practices. Most platforms are designed with compliance in mind, offering features to manage consent and data protection. However, organizations must ensure their use of identity resolution adheres to regulations like GDPR and CCPA.