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- Identity Resolution
Persistent identification of customers across all channels is key to omnichannel retail success.
With the ever-growing number of channels that retailers are engaging customers in — e.g., brick-and-mortar stores, e-commerce sites, mobile apps, call centers, social media, among others — it has become a challenge for brands to be able to identify customers, including when and in what channel they were acquired.
This problem is exacerbated by the fact that many retailers’ internal systems and departments are siloed, with information not shared between them.
For example, is the customer who’s calling your customer service department recognized as the same person that purchased at one of your brick-and-mortar stores? Or downloaded your mobile app? Or searched on your website for a specific product?
And why does it matter that you know?
Customer identification — and subsequent data points — is the first piece to creating a personalized shopping experience for your customers in every channel. And it’s been proven that personalization yields increased conversions, higher average order values and loyal customers. Consider that 86 percent of consumers said personalization has at least some impact on their purchasing decision, according to a study from Infosys. Furthermore, the study revealed that 31 percent of consumers wanted more personalization in their shopping experiences. And don’t forget the potential lifetime revenue lost from disenfranchising customers with a sub-par service or shopping experience.
86% of consumers said personalization had some impact on purchasing decision
31% of consumers wanted a more personalized shopping experience
20% of consumers have encountered personalized offers or promotions in-store
27% of consumers have experienced online personalization
(Source: Infosys: Rethinking Retail)
Personalization can improve your bottom line and consumers are increasingly asking for it…
What are you waiting for?!?
The first step in this process — before you can start serving up personalized offers, content, product recommendations, etc. — is identifying who each customer is, and then being able to share that information across your entire organization. And at the root of this is having clean, accurate data.
Contrary to what you may have heard or even experienced firsthand, there are cost-effective ways to identify a customer across multiple data channels. It involves data being cleansed, updated and tagged with a persistent ID number to keep the customer linked to one profile across multiple databases.
Finding the right provider requires doing your research to identify a partner that has the data necessary to link a large variety of consumers, has the technology in place for advanced consumer matching (i.e., advanced matching algorithms), and can provide ongoing updates to the data once captured.
Bad data, no matter how it’s acquired, costs companies billions every year in wasted resources and productivity.
(Source: Software AG)
The bottom line: there’s a lot of money at stake.
This waste manifests itself in many different ways for retailers, including easily quantifiable costs such as mailing duplicate records within a CRM database (physical mail and email) and returned mail, as well as more qualitative data such as the opportunity cost of not reaching the correct consumers, conversions lost from not being able to follow consumers through multiple channels, and squandered upsell and cross-sell opportunities from not knowing a customer’s purchase history.
In addition to the cost of mailing duplicate records and lost potential revenues from bad data, retailers without accurate data are also more susceptible to fraudulent orders. Access to accurate historical data for a customer enables retailers to quickly identify potentially fraudulent behavior (e.g., shipping to known fraudulent addresses, shipping to a prison address, not being able to answer knowledge-based authentication questions), saving them money from chargebacks.
To help prevent this loss of revenue — and retain more customers — retailers can invest in automated data processing solutions such as identity validation and verification, enterprise data linking, master data management, and data cleansing processes.
It’s well worth it.
Here are a few examples of the impact that a data management solution, including data cleansing and persistent data identification can have on your business.
Breaking down data silos and uniting all enterprise data through persistent ID assignment will give all departments in your organization significant insight into each consumer your company engages with. Marketing, analytics, fraud, risk mitigation, and compliance all benefit from looking at your consumers through a single, unified view. And by selecting the right partner, this process can prove ROI almost immediately, making it both cost-effective and operationally efficient.