Researching identity resolution vendors

Once you determine an enterprise identity resolution platform makes sense for your business, spend time researching individual vendors and their capabilities by doing the following: 

• Create and prioritize a list of identity resolution use cases, from essential to not necessary. 
• Use that list as a basis for your research — many of the vendors profiled in this report also provide blogs, ebooks and interactive tools that can help. 
• Make a list of the vendors meeting your criteria, reach out to them and set a deadline for replies. 
• Decide whether or not you need to engage in a formal RFI/RFP process.

Identity resolution is not only critical to marketing success but is essential for compliance with consumer privacy laws such as CCPA and GDPR. Explore the platforms essential to identity resolution in the latest edition of this MarTech Intelligence Report.

Click here to download!

RFI/RFP process

The RFI/RFP process is an individual preference, however be sure to give the same criteria to each vendor to facilitate comparison. The most effective RFPs only request relevant information and provide ample information about your brand and its identity resolution needs. It should reflect high-level strategic goals and KPIs. For example, mention your company’s most important KPIs and how you will evaluate the success of your efforts. Include details about timelines and the platforms in your existing martech stack. 

When written properly, an RFP will facilitate the sales process and ensure everyone involved comes to a shared understanding of the purpose, requirements, scope and structure of the intended purchase. From the RFP responses, you should be able to narrow your list down to three or four platforms to demo.

Demo the platforms

Schedule demos as close together as possible for the best comparisons. Make sure all potential users are on the demo call and pay attention to the following: 

• How easy is it to use? 
• Does the vendor understand our business and marketing needs? 
• Are they showing us our “must-have” features?

Questions for vendors

Here are some questions to ask vendors that touch on important considerations in your identity resolution search:

Data onboarding and privacy 

• Does the platform support first-party data onboarding? 
• Can we incorporate any of our private customer IDs into the platform? 
• Do you use probabilistic, deterministic or a hybrid approach to matching? 
• How do you validate the accuracy of your deterministic matches? 
• What match rate can we expect, given our vertical market and database size? 
• How do you comply with privacy regulations and consumer choice? 

Identity graph 

• Do you own or license your referential identity data? 
• What are your identity data sources? 
• How do you validate the quality of your identity graph? 
• How much of your data is addressable? 
• How is your identity graph linked to offline PII? 
• Do your identity capabilities apply to non-U.S. markets? 

Martech and adtech integration 

• How does the platform integrate with martech platforms (i.e., CRMs, DSPs, CDPs)? 
• Does the platform feature any built-in data activation capabilities (i.e., personalized email or ad campaign execution)? 
• Do you have APIs available for data import/export? 
• What reporting do you provide that will document the ROI from our identity efforts? 

Customer support 

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Does our customer data reside in disconnected silos throughout the organization?

Organizational silos between departments such as sales, marketing, procurement or customer support can lead to inconsistent customer experiences with a brand. An identity resolution platform can connect these systems. It will integrate consumer identifiers across channels and devices in a way that is accurate, scalable and privacy compliant to create a persistent and addressable individual profile.

Do we have customer knowledge gaps that could be filled with trusted second- and third-party data?

First-party data is essential for building a strong relationship between your brand and customers. However, identity graphs using anonymized second- and third-party data can provide valuable demographic, location, financial and other information that can fill gaps in customer insights. As data collection and matching techniques improve, creating a 360-degree view of customers through identity resolution platforms may make sense.

Are we in compliance with CCPA, GDPR and other data privacy regulations?

Data breaches and misuse of consumer data continue to make headlines, leading to an increase in privacy regulations. It’s crucial to ensure your data governance practices comply with the EU’s General Data Protection Regulation (GDPR) and/or the California Consumer Privacy Act (CCPA). While collecting and using consumer data is an essential part of marketing, it also escalates the risk of damaging your brand and incurring legal consequences.

Can we successfully integrate our existing customer data systems with an identity resolution platform?

Your various martech and ad tech systems absolutely must be able to communicate with each other. If they can’t, your organization likely would benefit from an identity resolution platform. This platform can incorporate identifiers and profiles between and within these systems for consistency and accuracy, creating a persistent and addressable individual profile

Does our C-suite support identity resolution initiatives?

Most C-level executives overestimate their marketing organization’s customer identity accuracy and persistence, according to a Forrester study. This can lead to inadequate budgeting, campaign measurement and performance, and broken customer experiences. Therefore, it is critical to secure C-suite support for identity resolution initiatives across the organization.

Identity resolution is not only critical to marketing success but is essential for compliance with consumer privacy laws such as CCPA and GDPR. Explore the platforms essential to identity resolution in the latest edition of this MarTech Intelligence Report.

Click here to download!

How would we use identity resolution?

Identity resolution has many marketing use cases, from complying with data privacy regulations to developing more accurate lookalike audiences to improved marketing segmentation and targeting. Identifying the use cases that would most benefit your organization is fundamental for establishing and prioritizing the capabilities you’ll need.

What KPIs do we want to measure and what decisions will we make based on the data?

It’s critical to measure the impact of an identity resolution platform on your marketing ROI. Resolving customer identities will provide new cross-sell and upsell opportunities because your marketing team knows more about your customers. Although KPIs vary by organization and/or industry, you should be able to measure incremental lift in metrics such as average order value, average revenue per user, basket size, response rates or customer retention.

What is the total cost of ownership?

Most of these platforms use on-demand pricing, meaning customers pay a monthly subscription price that will vary by usage. Pricing is typically based on the number of data records or customer profiles under management or the number of matches or API calls. Some also have add-on customer support options.

The post Does your organization need an identity resolution platform? appeared first on MarTech.

Identity resolution platforms enable marketers to “close the loop” on customer marketing, analytics and compliance with a comprehensive holistic view of activity across all of an organization’s customer touchpoints and channels. Such identifiers can and should encompass both online (device, email, cookie or mobile ad ID) and offline (name, address, phone number) data signals and attributes.

Why are these platforms important?

A number of key factors have promoted the importance of these platforms over the last couple of years.

Goodbye to third-party cookies

The ongoing deprecation of third-party cookies and mobile identifiers, which tech companies are phasing out due to concerns about consumer privacy, are fueling interest in identity resolution platforms.

Marketers have long depended on third-party cookies and mobile IDs to target ads based
on data associated with these identifiers. As recently as mid-2021, 83% of marketers surveyed by Innovid were still using third-party cookies, and, for many marketers, their strategy was very reliant on this technology.

The walled gardens challenge

Marketers are also losing access to large pools of potential customer data due to the creation of “walled gardens” by Google, Facebook and Amazon. These closed ecosystems enable the marketplace providers to maintain control of user data.

All of these developments are driving marketers to step up their efforts to collect more first-party data about their customers and prospects, and also enhance their profiles in a privacy compliant manner.

The CTV opportunity

Advertising spending on connected TV (CTV) – which includes display ads on home screens as well as in-stream video ads on platforms like Hulu, Roku and YouTube – is the fastest-growing segment in digital advertising. Meanwhile, with Netflix and Disney Plus investing in ad-supported versions of their services, inventory is expanding to meet the demand.

Though advanced and connected TV aren’t hampered by a dependence on third-party cookies or mobile ad identifiers, the fragmentation of the sector means identity solutions are key to enabling the more advanced audience targeting sought by digital advertisers.

Let’s look at how identity resolution platforms can help marketers address all these challenges and opportunities.

Dig deeper: What is identity resolution and how are platforms adapting to privacy changes?

Main capabilities of identity resolutions platforms

Identity resolution platforms support marketing processes around targeting, measurement and
personalization for both known and anonymous audiences across digital and offline channels.
Virtually all enterprise identity resolution platform vendors offer the following core features and capabilities:

• Data onboarding (including online/offline matching).
• Proprietary identity graph.
• Client ownership of first-party data.
• Persistent individual and/or household ID.
• Compliance with data privacy regulations.
• APIs for third-party system integration.
• Pre-built connections to martech/adtech platforms.

Let’s look at the first two of those in more detail.

Data onboarding

Client data is typically onboarded via secure file transfer protocol (SFTP), although some vendors also provide direct API transfer or pixel syncs. Data is processed with the goal of establishing a universal view of the customer.

The aim is to support persistent customer IDs during the identity resolution process, which means the ID follows the individual (or household) even as identifiers change, which they inevitably do. For example, when browser cookies expire or are deleted, or customers buy and use new devices, the customer ID will remain the same.

Identity graphs

Most identity resolution vendors maintain a proprietary identity graph or database that houses all the known identifiers that correlate with individual consumers. There is no standard model for an identity graph.

Identity graphs may also incorporate demographic, behavioral, financial, lifestyle, purchase and other data compiled or licensed from third-party sources, such as online news sites, purchase transactions, surveys, email service providers (ESPs), motor vehicle records, voter registration and other public records.

Dig deeper: Marketers make identity solutions an urgent priority

The benefits of using identity resolution platforms

Connecting consumer identifiers has become a mandate for enterprise marketers trying to
meet or exceed customer expectations for a personalized brand experience. Automating the
process with an identity resolution platform can provide the following benefits:

• Deeper customer insights.
• Accurate personalization.
• More seamless customer experiences.
• Stronger privacy governance, risk and compliance.
• Enhanced cross-channel attribution and campaign tracking.
• Increased marketing ROI.

Learn more about the capabilities and benefits of this critical technology by downloading our free report.

Identity resolution is not only critical to marketing success but is essential for compliance with consumer privacy laws such as CCPA and GDPR. Explore the platforms essential to identity resolution in the latest edition of this MarTech Intelligence Report.

Click here to download!

The post What is an identity resolution platform? appeared first on MarTech.

Central to that are identity resolution platforms, which is software that integrates consumer identifiers across channels and devices in a way that is accurate, scalable and privacy compliant to create a persistent and addressable individual profile. Identity resolution platforms enable marketers to “close the loop” of customer marketing, analytics and compliance with a comprehensive holistic view of activity across all of an organization’s customer touchpoints and channels. Such identifiers can and should encompass both online (device, email, cookie or mobile ad ID) and offline (name, address, phone number) data signals and attributes.

In this article you’ll learn:

• Why do marketers need identity resolution platforms?
• What identity resolution platforms do
• What is data onboarding and why is it important?
• What is an identity graph?
• Why privacy compliance and data ownership matters
• What third-party software integrations are available for identity resolution?
• What are the benefits of using identity resolution platforms?

Why do marketers need identity resolution platforms?

Consumer adoption of connected speakers, home automation solutions, smart TVs and wearables continues to rise exponentially. The number of devices connected to IP networks is projected to climb to more than three times the global population by 2023, with 3.6 networked devices per capita, according to the Cisco Annual Internet Report, 2018-2023.

In this competitive environment, it is essential that brand marketers understand which online devices and offline behaviors belong to a consumer as well as who that consumer is. Every time a consumer interacts with the brand – regardless of channel – a different identifier (also called a key) can be attributed to that individual. These identifiers can include an email, IP or physical address, as well as a mobile phone number, digital tag or cookie.

However, accurately resolving consumer identities has proved challenging for a majority of brand marketers. Forrester found that a majority of C-level executives overrate their marketing organization’s customer identity accuracy and persistence.

That challenge promises to become even more difficult as tech companies make changes that essentially deprecate third-party cookies — one of the key identifiers that has been used to stitch identity data together. Google has announced plans to phase out third-party cookies in its Chrome browser in late-2023. Apple has similar plans for IDFA, its identifier for advertisers, requiring users to opt into the program. At this point, only 20% of iOS users have opted to enable it, further highlighting consumer preferences for privacy.

Identity resolution is not only critical to marketing success but is essential for compliance with consumer privacy laws such as CCPA and GDPR. Explore the platforms essential to identity resolution in the latest edition of this MarTech Intelligence Report.

Click here to download!

What identity resolution platforms do

Identity resolution platforms support marketing processes around targeting, measurement and personalization for both known and anonymous audiences across digital and offline channels. And most enterprise identity resolution platform vendors offer the following core features and capabilities:

• Data onboarding (including online/offline matching).
• Proprietary identity graph.
• Client ownership of first-party data.
• Persistent individual and/or household ID.
• Compliance with privacy regulations.
• APIs for third-party system integration.

Vendors begin to differentiate their platforms by offering more advanced features, sometimes requiring additional investment, which include – but are not limited to – the following:

• Match confidence scoring.
• Data clean rooms.
• Private (first-party) and/or second-party cooperative identity graphs.
• Pre-built connections to martech/ad tech platforms.

Let’s look deeper at these platform capabilities.

What is data onboarding and why is it important?

Data onboarding is the first step in the identity resolution process. Client data is typically onboarded via secure file transfer (SFTP), although several vendors also provide direct API transfer or pixel syncs. Data is processed with the goal of establishing a universal view of the customer and includes the following:

• Matching individual identifiers in the identity graph (see below) to associate the customer with their interactions across touchpoints, particularly online to offline.
• Suppressing unresolved IDs and interaction data for potential future use.
• Hashing or tokenizing personally identifiable information (PII) with an anonymized customer ID.
• Linking matched IDs to a universal ID representing the customer profile and all of its associated attributes.
• Validating the accuracy of matches to a pre-established “truth set” of referential data known to be precise and accurate.

Most vendors provide persistent customer IDs during the identity resolution process, which means the ID follows the individual (or household) even as identifiers change, which they inevitably do. For example, when browser cookies expire or are deleted or customers buy and use new devices, the customer ID will remain the same. Persistence is also critical to enabling temporal time-series analytics, such as churn analytics. Matching algorithms differ among vendors, with matches established via probabilistic or deterministic methods or a combination of both. Deterministic matching relies on explicit links between identifiers, such as an email address that is used to sign in to a website or mobile app and can be associated with the resulting cookie or mobile ad ID (MAID). Probabilistic matching relies on implicit links between identifiers, such as a desktop cookie and MAID both associated with a residential IP address. The goal is to consider multiple signals like location and browsing history.

Both approaches have their pros and cons, which should be considered when choosing an identity resolution platform. Deterministic matching takes an omnichannel view that attempts to connect identifiers across digital and offline interactions. It can be difficult to scale and prone to inaccuracy. Probabilistic matching can “weed out” inaccurate data because it looks at a variety of data points versus binary matches. Its drawback is that it is limited to online touchpoints. Some vendors are using hybrid identity resolution approaches, which try to compensate for deterministic and probabilistic weaknesses while capitalizing on their advantages. It uses deterministic and probabilistic linkages, and then merges the two linkage sets together to form new, combined clusters.

Many vendors provide their overall match rates to potential clients. A few vendors go a step further, providing clients with customizable match algorithms or confidence scores (how likely the matches are accurate) based on their specific first-party customer data and data quality profiles. For example, a pure online organization may rarely use postal addresses and is likely to have lower-quality address data than an organization that relies on fulfillment to a physical shipping address. Addressability is another factor that can help marketers measure their match accuracy by assessing the number of consumers that can actually be contacted.

What is an identity graph?

Most identity resolution vendors maintain a proprietary identity graph or database that houses all the known identifiers that correlate with individual consumers. There is no standard model for an identity graph. Each vendor differs in the types of foundational PII used, the matching methods employed and the non-PII integrated to enrich the individual profiles. Across the buyer’s journey, many identifiers can be associated with an individual, including email addresses, physical addresses, landline and mobile phone numbers, mobile ad and device IDs, account usernames and loyalty numbers. The identity graph collects these identifiers and links them to customer profiles, which are used to target and personalize marketing messages.

Identity graphs may also incorporate demographic, behavioral, financial, lifestyle, purchase and other data compiled or licensed from third-party sources, such as online news sites, purchase transactions, surveys, email service providers (ESPs), motor vehicle records, voter registration and other public records. Having all of this customer device, channel and behavioral data in one place allows brand marketers to more accurately measure the reach and frequency of their campaigns, and analyze how different ads and marketing tactics perform across channels.

In response to the dwindling availability of third-party cookie data and the increasing use of consumer privacy tools, such as advertising and location blocking apps, several identity resolution platform vendors are offering new identity graphs built on first-party or second-party datasets. First-party identity graphs are exclusively used by a brand to house and match known customer data. Second-party identity graphs use cooperative data-sharing agreements between multiple brands or publishers to create common, anonymized identity assets.

Participating organizations can build, plan, activate and measure custom audience pools to either target or suppress customers across addressable media.

Why privacy compliance and data ownership matters

Marketers with customers in the European Union have had to comply with GDPR since May 2018. The CCPA, impacting all brands with customers residing in California, went into effect in January 2020, and empowers consumers to make a Subject Access Request to see all the data an organization has about them, which raises the stakes of identity resolution match accuracy. CCPA defines personal information as anything that can be associated or linked with an individual or household.

Marketers in the highly regulated healthcare market must follow Health Insurance Portability and Accountability Act (HIPAA) and Health Information Technology for Economic and Clinical Health Act (HITECH) regulations. In addition, all organizations that accept, process, store or transmit credit card information must maintain a secure environment that meets Payment Card Industry Data Security Standards (PCI DSS), as well.

These regulations are driving an expanded industry focus on data transparency and consumer consent, with a view toward complying with new standards for the benefit of consumers, as well as marketers. Many identity resolution platform vendors adhere to advertising industry guidelines from the Digital Advertising Alliance (DAA) or Interactive Advertising Bureau (IAB).

Lastly, and importantly, the majority of vendors profiled generally allow enterprise brands to retain ownership of their first-party data.

What third-party software integrations are available for identity resolution?

The ultimate marketing goal for identity resolution is to support and enable data activation by pushing segmented audiences into highly personalized campaigns through a variety of martech (CRMs, DMPs, marketing automation platforms, ESPs, etc.) and ad tech (DSPs, SSPs, ad exchanges, etc.) tools and platforms. Identity resolution platforms should be able to streamline integration with the client’s martech and ad tech ecosystems by providing pre-built (or native) connections and an extensive set of APIs for custom integrations. Access to these APIs may or may not be included in base pricing.

Explore platform capabilities from vendors like Acxiom, Experian, Infutor, Merkle and more in the full MarTech Intelligence Report on identity resolution platforms.

Click here to download!

What are the benefits of using identity resolution platforms?

Connecting consumer identifiers has become a mandate for enterprise marketers trying to meet and exceed customer expectations for a consistent and personalized brand experience.

Automating the process with an identity resolution platform can provide the following benefits:

• Deeper customer insights. Piecing together data signals from multiple data sources and interactions enables marketers to build more robust customer profiles. Knowing the customer at a more granular level can help drive rich customer insights that enhance campaign targeting, personalization and relevance.
• Personalization accuracy. Better personalization is a primary marketing use case for many identity resolution platforms, which create a consistent set of identifiers to fuel personalized interactions. If you don’t know with confidence who your customer is, you can’t personalize your messages or experiences.
• More seamless customer experiences. Automated identity resolution allows marketing organizations to create a unified view of customers, which can be communicated and deployed across brands, business units and product lines. Recognizing customers across every step of the customer journey reduces waste by eliminating duplicate contacts, and enhances their experiences by enabling interactions in the right channel at the right time.
• Stronger privacy Governance, Risk and Compliance (GRC). Effective identity resolution supports your organization’s commitment to data governance and, ultimately, consumer trust in your brand. Using an identity resolution platform makes customer preference management (including opting out), as well as regulatory and corporate policy compliance easier and more comprehensive.
• Enhanced cross-channel attribution and campaign tracking. Persistent IDs that identify customers (both known and anonymous) across channels enables more accurate, closed-loop measurement and multi-touch attribution.
• Improved marketing ROI. Identity graphs reduce data overlap and duplication, resulting in more efficient spending on campaigns that work. Conversely, not knowing who your customers are leads to misidentifying them and engaging in ways they may perceive to be intrusive or irrelevant.

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