Data onboarding is one of the most significant developments in marketing. Today, It is worth an estimated $250million and forecast to reach $1billion by 2020. The result of data onboarding is more relevant marketing for both the consumer and the brand in an omnichannel world. Digital marketers need to have a good sense of what onboarding involves since it is becoming an essential part of data-driven targeting.
But there’s more beyond just jumping onto the bandwagon. You need to make sure you’re working with the right partner whom you can trust and will guide you along a successful data onboarding journey. Here are some telltale signs to make sure you are working with a trusted partner:
1. Your onboarding partner knows exactly the difference between probabilistic matching and deterministic matching
There are two fundamental approaches within data onboarding. It all comes down to how precise your partner can be in resolving the identity of the individual in the digital space.
Probabilistic Matching uses statistical algorithms to quantify the likelihood that the person being targeted is the same as the individual being onboarded, while Deterministic Matching uses a wider and richer set of identity resolution techniques and authenticated data to resolve that identity to the individual level.
Your onboarding partner will tell you that deterministic matching is more desirable because it is more accurate and so delivers better results through greater relevance. However, there is a place for probabilistic matching so long as you understand the differences.
2. Your onboarding partner highlights that not all match rates are true
You may encounter more than one definition of match rate. For sanity sake, we’ve defined it as the percentage of individual matches made between the onboarded file and the consumer in the digital world. What you should be clear about is between ‘sync rate’ and ‘match rate’.
‘Sync rate’ gives you a feel for the number of ‘bites of the cherry’ you may have for targeting an individual, but it is not the same as the number of individuals precisely matched, which is the true ‘match rate.’ Your onboarding partner should explain what your true match rate is.
3. Your onboarding partner keeps you in check
Transparency and compliance are both key here. It is important to have a partner who can make sure your marketing is using data to drive consumer value within the regulated waters. Your onboarding partner will explain what you can or cannot do with the data.
Just like matchmaking, it is important to find the right data onboarding partner. Did your onboarding partner point out that your data is skewed? Did you get a straight up answer when you asked when isn’t deterministic deterministic? Here are seven questions that every marketer should ask their data onboarding partner.