In the modern era of the information society, companies obtain huge quantities of information about customers and their assets from different channels including purchase histories, contacts, and interactions. However, these insights are commonly stored in separate systems and, therefore, provide only a limited perspective on customers. Identity resolution solves this problem by putting together the various pieces of customer information to form a complete picture.
This article focuses on the definition of Identity Resolution, its significance, and the ways it can be implemented in companies to improve the clients’ experience and increase productivity. To learn more in detail, keep reading this guide till the end.
1. Understanding Identity Resolution
Identity resolution means the process of accurately matching and merging data coming from multiple sources to generate a comprehensive and coherent picture of a person or object. This covers the processes of associating and linking different IDs (for instance, email and phone contacts, social media accounts, etc.) belonging to the same customer.
2. Benefits of Identity Resolution
There are many advantages that businesses could gain from identity resolution. It helps them to achieve a customer 360-degree insight whereby they can know how and what their customers are doing and how they are handling the company’s products or services. This being so, the overall picture enables targeted consumer communication, as well as increased efficiency of customer relations and management decision-making.
3. Key Components of Effective Identity Resolution
Identity resolution is fundamentally a data-driven process supported by several advanced algorithms and data techniques namely deterministic matching (exact match), probabilistic matching (fuzzy logic), and data linkage techniques. Such components increase the confidence in the linkage of the customer data, as well as the matching even if the data is incomplete or inconsistent.
4. Use Cases Across Industries
The application of identity resolution is prevalent in various industries. In the field of retail and e-commerce, with customers’ permission and agreement, AI makes it possible to provide individual offers and organize promotional activities for clients. In the healthcare sector, it facilitates patient record keeping and admission of inventories and individualized care plans. In finance, it complements fraud analysis as well as the monitoring of compliance with the laws in action.
5. Challenges and Considerations
Some of the issues that arise while utilizing identity resolution are data quality management, data privacy, and data regulation. Companies fail to cope with these challenges, staying compliant with related data safety regulations and introducing strict data governance policies to develop and maintain customer trust.
Conclusion
Identity resolution is an essential function for industries that endeavor to provide singular omni-channel consumer experiences in today’s highly advanced digital world. In line with this, businesses should converge independent data sources and create a set of standard customer personas, which will contribute to better performance, customer satisfaction, and growth. Many organizations benefit from identity resolution to gain better insights into consumers and their behaviors, they are also more equipped in a way to innovate and meet the new market needs.