There are countless ways for businesses to collect data on their customers. From loyalty programs, to transaction history, to email engagement — data is there for anyone who wants it. Unfortunately, that’s where the simplicity stops. Reaching data is easy, but organizing, let alone understanding messy data is where the challenge arises.
Most customer data management and unification practices cannot deliver an accurate view of their customers. Identity resolution, the act of merging consumer data with its matching profile, is hugely important — if that isn’t done properly, then the marketing steps that follow are guaranteed to be less effective. Even properly collected and formatted data is useless if grouped incorrectly, as the right data merged into the wrong profile is still going to be inaccurate. This leaves brands with incomplete, flawed views of their customers, and the fallout from this is bad, especially for high-value customers who make up a large chunk of a company's revenue.
Understanding customers allows brands to plan for the future and deliver personalized experiences at scale. Not having a single view of your customers causes a waterfall of negative consequences. Basic KPIs like total numbers of customers and customer lifetime value are off-base, individuals are assigned to the wrong segments, and marketing campaigns that need accurate data for targeting and effective personalization do not hit the mark, and often fail.
Even more distressingly, these issues hit your highest value customer the hardest. These customers are responsible for more than half of a company’s revenue. Retaining existing customers, especially high-value ones, costs much less than acquiring new ones, so it’s critical for brands to locate and understand them in order to target them more effectively and give them the best personalized experience possible.
A new era of advanced identity resolution
So how can brands tackle this issue? A robust Customer Data Platform (CDP) with the right identity resolution capabilities is the key to deciphering convoluted customer data and identifying your best customers. Applying a more flexible approach to data unification and resolution, powered by artificial intelligence, provides the basis to create a single view of the customer, the solid bedrock upon which accurate insights and effective personalization stand.
Learn more about how Amperity solves the problem of high-value customers having the messiest data in our guide to AI-powered identity resolution.