Identity resolution is a process of matching data points of consumers from their use of multiple devices. You may also call it cross-device targeting. It helps create a profile of consumers based on their interests and preferences. Marketers struggle to gather this data from multiple sources to get a clearer picture of the consumer profile. It helps them effectively target their audience through exclusive ads. Moreover, it enables them to personalize their user experience and make their custom journey pleasant throughout.
Top Reasons for Current Industry Challenges with Identity Resolution
Brands have access to consumer data. However, there is so much information available regarding the consumer that might not be accurate. It can be duplicative or misleading and can further affect the customer’s loyalty and trust. So, connecting the dots properly is a challenge in itself for marketers. Currently, the rise in privacy concerns and depreciation in third-party cookies have made it even more difficult for marketers to deal with identity resolution to market their products or services effectively. They are now more conscious about how and what types of ads they can make to target their audience.
Let’s discuss the analysis report of the US Programmatic Digital Display Ad Spending from 2019 to 2023. According to the stats, digital ad spending will reach $123 billion by the end of 2022 and $142 billion by the end of 2023. The data depicts that the current industry is facing challenges with identity resolution, wherein marketers felt the need to increase digital ad spending as a means to an end. Because of the rise in privacy concerns and depreciation in third-party cookies, marketers are now rethinking how they should measure ads. They have acknowledged the fact that they will have to struggle more to target their audience and make their ads effective.
Ways to Deal with the Challenges of Identity Resolution
Now, let’s move forward and talk about a few ways to deal with the challenges of identity resolution.
Build Complete Customer Profiles to Get a Complete Picture
You can build a complete customer profile to know the consumer’s interests, preferences, and purchases. It will be known as a customer identity which will be used by the customers to present themselves to the company or organization. You can utilize any online service or tool to secure the consumer data and keep it updated every few days. However, the consent of the consumer should be taken into account while implementing this strategy. Having an updated data will enable the brand to deliver relevant high-quality products to its customers. This way, brandscan also provide the customers with the best offers or messages which align with their journey path.
Have a Direct Relationship with Customers
Brands must have a direct relationship with their customers so as not to make them feel that their interaction with the brand seems mechanical. With that in mind, the brand must struggle and find better ways to stay connected to its customers to strengthen its relationship with them. Moreover, it must deliver accurate information to the customers to avoid having to go through the struggle of seeing a lot of spam messages. It might be a daunting task, but it is a fundamental requirement to drive personalization and real-time engagement for the customers.
Ensure Contextual Relevance to Stay Updated About the Customers
A progressive profile of a customer is essential to know about their current needs at any given moment. It will ensure the contextual relevance which will help the brand know about all the touchpoints of their customers. A progressive profile will consist of the social persona and a virtual/actual location of the customer. It would further keep the brands aware of what their customers will purchase and at what price they will prefer to buy a specific product at a specific time of the day. Moreover, focusing more on maturing their relationship with their customers will give brands a competitive advantage.