Leveraging Third-Party Persistent IDs for Robust Customer Data Management

The advent of Customer Data Platforms (CDPs) has revolutionized how businesses view and manage customer data, promising a unified customer database from a myriad of diverse data sources. However, the key to unlocking the full potential of CDPs lies in the effective usage of identity graphs and their ability to provide identity resolution via persistent IDs. While the importance of trusted and persistent identifiers is widely acknowledged by marketers, the generation and management of these IDs and their underlying technologies can pose considerable challenges for many businesses and their Martech partners.

The generation of persistent IDs requires a deep understanding of technical complexities and data privacy regulations. In addition, the maintenance of these IDs involves consistent monitoring and updating, necessitating a significant time and resource investment. Many CDPs lack the in-house technical expertise to efficiently create and manage these IDs. As a result, they often resort to a ‘bring your own IDs’ policy, asking clients to provide their own unique identifiers to load into their platform or service offering. This places the burden of the creation and management of IDs upon the client and their internal teams.

However, businesses can navigate these challenges by leveraging trusted third-party providers. These providers specialize in generating and maintaining persistent IDs, ensuring they remain accurate and up-to-date over time. Employing a third-party provider also offers benefits in terms of data privacy and data usage compliance. These providers are well-versed in global data privacy and data sharing regulations, ensuring the generated IDs comply with the necessary legislation, thereby reducing the risk of non-compliance for businesses.

When businesses opt for persistent IDs generated by a third-party provider, they can focus their resources on utilizing the CDP for its primary purpose – deriving valuable insights from unified customer data. This strategy not only streamlines the process of managing customer data but also ensures the resulting insights are based on accurate and reliable identifiers. In addition, many clients find that utilizing a third-party provider lowers their overall costs for deployment while providing a robust and scalable solution. Ultimately, third-party generated persistent IDs enrich the functionality of a CDP, enabling businesses to optimize their customer interactions and drive their decision-making process with precision and confidence.

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