Identity Resolution:
Why It Matters
and How to Use It
Learn how identity resolution helps you recognize more shoppers,
recover lost sales, and grow your list.
INTRO
Why Identity Resolution Is Your Missing Piece
Right now, you’re losing potential customers every single day, and not because they don’t have interest in your brand, but because you don’t know who they are. That’s where identity resolution comes in. Understanding identity resolution might feel intimidating, with complex terms like unique identifiers and server-side tracking. But in reality, it’s the key to solving one of your biggest marketing headaches. Marketers have been struggling with identifying their customers since Apple’s iOS updates, and increasing privacy restrictions make tracking and retargeting harder than ever. And what’s been the response? Mostly just a collective sigh of frustration. Well, here’s the good news: Identity resolution is the closest thing we have to pre-iOS marketing. It helps you reclaim lost data, recognize more visitors, and make every marketing channel work harder.
We’ve partnered with Black Crow AI, a leading identity resolution provider for eCommerce brands, to break it all down in a way that actually makes sense, cutting the jargon to help you crack the identity resolution topic. We’ll define identity resolution, explain why it matters and how it directly impacts your bottom line. We’ll even show you how to use it to grow your lists, recover more revenue, and make retention easier.
We know the topic of identity resolution might sound daunting. Heck, you could probably just drop this guide into ChatGPT and let it summarize for you. But we highly recommend reading ahead because identity resolution is something you’ll really want to understand if you care about stronger marketing results in 2025.
Table of Contents
01
Identity Resolution in Action: The Rebellion Against Anonymity
02
Unmasking Identity Resolution and How It Really Works
03
Applying Identity Resolution to Transform Marketing Strategy
04
“Big Brother” or Big Helper? The Ethics of Identity Resolution
05
Conclusion: Turning Recognition into Results
Table of Contents
01
Identity Resolution in Action: The Rebellion Against Anonymity
02
Unmasking Identity Resolution and How It Really Works
03
Applying Identity Resolution to Transform Marketing Strategy
04
“Big Brother” or Big Helper? The Ethics of Identity Resolution
05
Conclusion: Turning Recognition into Results
Chapter 01
Identity Resolution in Action: The Rebellion Against Anonymity
Imagine running a high-end boutique where every time a customer leaves, you forget who they are when they return. Even your most loyal shoppers have to reintroduce themselves on every visit. That’s exactly what happens online without identity resolution.
Digital Amnesia Without Identity Resolution
Welcome to the Groundhog Day Effect
Without identity resolution, every visit feels like the first. Brands struggle to recognize shoppers across sessions, leading to frustration, friction, and lost conversions.
Previously shared preferences are forgotten.
Customers have to rebuild their carts if they switch devices.
Up to 64% of abandoned cart recovery attempts fail simply because returning visitors aren’t recognized.
The Personalization Paradox
Brands collect tons of data, yet without identity resolution, they can’t connect the dots. Shoppers are left with irrelevant recommendations, broken cross-device experiences, and generic messaging.
Data exists, but brands can’t connect it across sessions.
Returning customers still get the same “Welcome” offers.
Cross-device shopping experiences break down.
Data Fragmentation
Without a unified view of customer behavior, you end up with disconnected profiles, unreliable attribution, and inefficient marketing spend.
Customer profiles exist in silos across platforms.
Attribution is unreliable.
Marketing spend efficiency drops.
Even returning customers appear as new prospects.
Revenue Leakage
Without proper identity resolution, you lose revenue you should be reclaiming, whether through abandoned cart flows, personalization, or retention marketing.
Abandoned cart recovery rates suffer.
Personalization doesn’t scale.
Customer lifetime value (CLTV) becomes harder to predict.
Marketing automation flows miss potential customers.
The iOS Privacy Revolution: A Perfect Storm
The Rising Cost of Acquisition
Apple’s privacy updates changed everything, making it more expensive and less effective to acquire customers. And here’s the kicker: many brands are unknowingly paying to acquire customers they already have.
Traditional tracking methods are increasingly blocked.
Ad targeting precision has plummeted.
Up to 50% of prospecting conversions are actually returning customers.
Marketing budgets are wasted on existing customers.
The Email Marketing Crisis
Email and SMS, longstanding pillars of retention marketing, are struggling to maintain consistent customer recognition, directly impacting performance and leaving revenue on the table.
Browser cookie limitations (7-day lifespan in Safari).
Broken abandoned cart recovery flows.
Decreased ability to recognize returning subscribers.
Limited cross-channel coordination.
The Personalization Puzzle
Personalization was once the future of eCommerce, but in a privacy-first world, you need new ways to deliver relevance without sacrificing trust.
Personalization becomes impossible when customer recognition is inconsistent.
Cross-device experiences are broken.
Limited ability to leverage first-party data.
Decreased effectiveness of automated flows.
The Path Forward
Server-side Solutions
The future of identity resolution isn’t in browser cookies—it’s in server-side solutions that provide persistent, privacy-compliant customer recognition. Server-side tracking processes user data on the server after it’s sent from the browser, offering more control and reliability, while browser-side tracking collects data directly in a user’s browser, making it more vulnerable to ad blockers and browser restrictions.
Moving beyond browser-based tracking.
Maintaining privacy compliance while improving recognition.
Creating unified customer profiles across channels.
First-party Data Optimization
With third-party tracking on its way out, first-party data is the new gold standard. You need to rethink how you collect, manage, and activate customer data.
Maximizing value from existing customer information.
Strengthening direct relationships with customers.
Creating more reliable identification methods.
Cross-channel Coordination
The ability to recognize customers across every marketing touchpoint is now a major competitive advantage. When you connect email, SMS, and web experiences seamlessly, you win.
Maintaining recognition across devices.
Improving automation/flow effectiveness.
Strengthening cross-channel messaging.
The post-iOS world isn’t just about adapting, it’s about rethinking how you approach customer identity. The brands that thrive will be the ones that balance recognition, personalization, and privacy, giving customers a seamless experience while staying compliant.
In the next chapter, we’ll explore the technical approaches to identity resolution, from native platform solutions to dedicated identity resolution systems.
Chapter 02
Unmasking Identity Resolution and How It Really Works
Let’s start with a confession: most people think identity resolution is just fancy cookie tracking or matching email addresses. That’s like thinking a master detective solves cases by only looking at fingerprints. The truth? It’s far more sophisticated.
Think about it like this: You meet someone at a party, forget their name, but the next time you see them at the grocery store, you recognize their face. That’s the kind of recognition marketers need online. But there are plenty of misconceptions about how it works.
Myth #1: “It’s just cookie tracking”
Reality: While cookies play a role, modern identity resolution is more like having a photographic memory across multiple touchpoints. Traditional cookies are like Post-it notes that fall off easily (or get tossed out by Safari every 7 days). Server-side identity resolution, on the other hand, is a persistent record that only you can read.
Myth #2: “It’s creepy surveillance”
Reality: It’s about respecting privacy while maintaining recognition. Think of it like a loyal barista who remembers your order, but only because you introduced yourself. The best identity resolution systems work only with data that customers have willingly shared.
Myth #3: “My ESP’s built-in tracking is good enough”
Reality: ESP tracking (like Klaviyo or Attentive) is like having separate bouncers at different doors of the same club. Each only remembers who came through their entrance. True identity resolution creates a unified system that works across all touchpoints.
How Customer Information Flows
Imagine your eCommerce store as a high-end boutique. Every customer interaction leaves behind digital footprints, but without identity resolution, those footprints fade fast.
First Impressions
When a visitor lands on your site, they’re assigned a unique server-side identifier. Think of it like a VIP card that stays valid even if they lose their wallet.
Identity Moments
The real impact happens during key identity moments when a customer:
Opts in to your email or SMS list
Starts checkout
Makes a purchase
Subscribes to a product
At these moments, their email or phone number gets linked to their unique identifier. It’s like updating their VIP profile, so they stay recognized across touch-points.
The Technology Behind Identity Resolution
Identity resolution relies on three core technologies that work together to create persistent, privacy-first customer recognition.
Server-side Cookies
Unlike traditional browser cookies that sit on a customer’s device (and are easily cleared), server-side cookies live on secure servers. Think of it like keeping customer records in a secure back office instead of on fragile paper notes.
Identity Graph
An identity graph is like a smart relationship map that connects different customer data points—email, SMS, direct site visits, and more. It ensures that a shopper stays recognized no matter how they interact with your brand.
Privacy-first Architecture
A strong identity resolution system is built for privacy compliance. It only activates for customers who have explicitly consented to tracking—think of it more like an opt-in loyalty program than surveillance.
Understanding Different Approaches to Identity Resolution
There are three main types of identity resolution systems in eCommerce, each with its own strengths and limitations.
Built-in/Native Platform Tracking
Some email and SMS platforms offer native tracking that relies on browser cookies and basic device recognition. These systems provide:
Basic tracking within the platform (e.g., Klaviyo, Attentive)
Device-based recognition
Integration with platform-native automation
Limitations:
Short lifespan of browser cookies (7-day limit in Safari)
No true cross-device recognition
Platform-specific silos (tracking only works within that platform)
AI-powered Probabilistic Matching
Some platforms use machine learning to predict identity matches. This approach:
Expands audience reach through probabilistic modeling
Uses behavioral and contextual signals
Works well with platform integrations
Limitations:
Less accurate than deterministic methods
Potential privacy concerns
Reliance on platform-specific algorithms
Dedicated Identity Resolution Systems
Independent identity resolution platforms take a more advanced approach by focusing on:
Server-side tracking for persistent recognition
First-party data optimization
Cross-platform identity matching
Real-world Impact: Why the Right Approach Matters
The difference between these systems becomes clear in common eCommerce scenarios:
Cart Abandonment Recovery
Problem: Traditional systems fail to recognize returning customers if their cookies are cleared, leading to disconnected experiences. Solution: Dedicated identity resolution maintains persistent recognition, boosting cart recovery rates by up to 64%.
Cross-device Shopping
Problem: A customer browses on mobile but purchases on desktop.
Native tracking: Sees two separate users
AI-based models: Try to make a probabilistic match
Dedicated systems: Seamlessly recognizes the shopper across devices
Platform Migration
Problem: A brand switches ESPs or adds a separate SMS provider.
Native tracking: Gets lost in the switch
AI-based models: Needs to be rebuilt
Dedicated systems: Continue functioning independently, preserving data
Future-proofing Your Identity Resolution Strategy
As eCommerce evolves, brands need to stay ahead of key privacy, technical, and data ownership challenges.
Privacy Compliance
Tighter tracking regulations mean brands must ensure explicit consent for data collection.
AI-powered matching is under increasing scrutiny.
Technical Resilience
Browser restrictions will continue to evolve.
Device fragmentation will make cross-device recognition even more critical.
Data Ownership
First-party data is now one of the most valuable assets for brands.
Relying too much on platform-specific tracking creates data portability risks.
Your most future-proof identity resolution strategy will prioritize:
First-party data over probabilistic predictions.
Independence from any single marketing platform.
Incremental value measurement.
By taking a privacy-first, data-driven approach, you can adapt to industry changes while ensuring consistent customer recognition and better marketing performance.
Chapter 03
Applying Identity Resolution to Transform Marketing Strategy
Marketers have been playing a frustrating guessing game for years. Who’s visiting your site? Are they a past customer? Have they engaged with your brand before? Without answers, you’re left running generic campaigns and missing out on key opportunities to convert shoppers.
By recognizing more visitors and connecting their interactions across touch-points, identity resolution turns retention into the new acquisition. Instead of constantly chasing new customers, you can engage the ones who are already showing interest – and do it smarter.
Investing in using identity resolution directly improves your bottom line, delivering:
Higher ROAS
Lower CAC
Improved CLTV
Improved CTR on ads, emails, texts
Let’s break down how using an identity resolution system can directly improve your marketing strategy and drive more revenue.
More Recovered Revenue with Abandonment Automations
Abandoned cart messages are a goldmine for retargeting, but most brands are only scratching the surface- because you can’t retarget shoppers if you don’t know who they are.
Without identity resolution, you might only be sending those messages to shoppers who are signed in, or are on a device they’ve interacted with your website on before. That’s a huge gap of knowledge being left on the table.
With identity resolution, you can match more anonymous visitors to actual profiles, meaning better knowledge of who is leaving a cart behind. This means:
More triggered emails and texts for cart and browse abandonment.
More recovered revenue from moments that would’ve been lost.
That’s more revenue back in your pocket, just by recognizing who’s shopping.
Better, Faster-growing SMS & Email Lists
List growth isn’t just about showing pop-ups; it’s about knowing who to show them to and when.
Without identity resolution, you might just time your pop-up to run after a few seconds or only on certain pages, without knowing whether a visitor is already subscribed or even interested.
With identity resolution, you can:
Know more accurately who is visiting your site- and then know whether they’ve already subscribed- so you can engage them most effectively without creating spammy pop-up experiences.
Use predictive AI within your identity resolution provider (like Black Crow AI offers) to go even further, identifying which site visitors are most likely to opt in and triggering pop-ups at the right moment, increasing conversions by over 3x.
The result is more relevant experiences, more high-intent subscribers, and more overall list growth, all thanks to identity resolution helping you better understand their on-site visitors.
Smarter Replenishment Touch-points
Replenishment is a no-brainer for retention, bringing shoppers back to repurchase when they might be running low. Generic reminders create lackluster experiences for every subscriber- spamming email subscribers before they’re actually out of product, or sending everyone a generic “30 days from purchase” reminder that doesn’t resonate. Without identity resolution, you might not understand which shoppers have come back to purchase already, or what they’re telling you about their purchase frequency- leading to mistimed messages.
With identity resolution, you can better gather information about your subscribers visiting your website, and even connect that to AI-based tools (like Black Crow AI’s Repurchase Optimization) to send more effective replenishment messages that boost repeat purchase rate by 15% or more:
Predicting the best time for a repurchase based on more data about past shopping behavior, thanks to identity resolution.
Triggering personalized restock reminders through email and SMS, with product recommendations leveraging more data about shopping preferences.
Instead of sending the same repurchase reminder to everyone at the 30-day mark, the powerful duo of identity resolution and AI can turn your wealth of identified shopper data into predictions of when customers will actually repurchase. Putting your data to work for more conversions, and a better customer experience.
Smarter Paid Ad Strategy
Running paid ads without identity resolution means more ineffective ad spend. You may be retargeting someone who just purchased, simply because they did so on another device or without being signed in. With incomplete data, not only might you be wasting ad budget, but missing out on conversion opportunities.
When identity resolution connects with AI-driven tools and prediction technology, it unlocks new opportunities to improve your paid ad performance:
Identity resolution helps you more accurately identify, and therefore segment visitors, for ads- ensuring your ads reach the right people, whether they’re high-intent shoppers or past customers.
By resolving identities across devices and channels, identity resolution ensures that you can reach shoppers with consistent messaging no matter where they engage (social, search, display, etc.).
When you combine identity resolution with AI (like Black Crow AI’), you can trigger ads when shoppers are most likely to convert- using the data you know about your shoppers to trigger more timely ads rather than generic retargeting.
With more data and understanding of your shoppers, you can show more personalized, relevant ads based on their browsing behavior. Of course, you can do this with more accurate data for segmentation- but some identity resolution providers also offer AI tools to dynamically adjust creative based on shoppers’ history—boosting relevance and conversion rates.
Identity resolution providers enable you to have more accurate information about your shoppers- but some providers, like Black Crow AI, also predict LTV based on all the data they collect to help brands better allocate ad budget to focus on high-value customers.
This means stronger ROAS, lower CAC, and higher conversion rates, all because identity resolution provides the missing data needed to make paid ads work smarter.
Personalized Cart Experiences
Whether shoppers reach your site from emails or ads, identity resolution helps you understand who they are and how they’ve engaged with your brand historically. Without it, shoppers might get the same generic experience—regardless of their past interactions.
Here’s how brands can use identity resolution tools to recognize, understand, and personalize the shopping experience to drive more conversions:
Recognize returning shoppers and curate their experience. Identity resolution allows brands to identify past visitors and more accurately match them to previous browsing and purchase history. This means you can show shoppers the products they care about most, not generic recommendations.
By combining more and more accurate shopper preference data from your identity resolution tool with AI, you can better predict what recommendations a shopper may want to purchase next. Some identity resolution tools, like Black Crow AI provide curated AI product recommendations based on a visitor’s past browsing and shopping behavior that you can incorporate into emails and personalized storefronts.
Drive higher CVR by making every visit feel hyper-personalized. By knowing who the shopper is and what they’ve engaged with, identity resolution enables you to create more dynamic experiences – such as automatically displaying shoppers’ preferred categories or highlighting a recently viewed item right when they land on the site.
Instead of sending shoppers generic products, use the data you know about them with identity resolution to guide them straight to the products they’re most likely to buy based on real data – not assumptions.
Chapter 04
“Big Brother” or Big Helper? The Ethics of Identity Resolution
When it comes to identity resolution, the conversation often gets reduced to extremes: it’s either invasive surveillance or essential personalization. But in reality, it all comes down to how the technology is implemented.
Done right, identity resolution helps brands create seamless, personalized experiences while respecting customer privacy. Done wrong, it can erode trust and lead to compliance risks. The difference? Consent, transparency, and responsible data practices.
The First-party Data Advantage
Unlike aggressive data collection that scrapes or infers customer information without consent, first-party identity resolution relies on direct, voluntary interactions. It’s a trust-based approach that builds stronger customer relationships and future-proofs marketing strategies.
Trust-based Recognition
Identity resolution should be built on mutual trust: brands recognizing customers based on information they’ve willingly shared. This strengthens the customer experience rather than compromising it.
Only recognizing users who have explicitly opted in.
Using data that customers have actively shared.
Maintaining transparency about how data is used.
Respecting privacy preferences at every step.
The Deliverability Advantage
Using consent-based identity resolution directly improves email and SMS performance. Why? Because when customers expect to hear from you, they engage more, and providers recognize that.
Higher engagement rates from real customer interest.
Fewer spam complaints since messages are expected.
Stronger sender reputation with email providers.
More accurate targeting across marketing campaigns.
Privacy-first Architecture
Privacy shouldn’t be an afterthought, it should be baked into the foundation of identity resolution. A privacy-first approach ensures compliance while maintaining customer trust.
Server-side data storage for enhanced security.
Built-in compliance with GDPR and CCPA.
Clear, easy-to-understand opt-in processes.
Simple opt-out mechanisms to give customers control.
The Problem with Aggressive Data Collection
Some identity resolution providers take a more aggressive approach, attempting to collect and match customer data without direct interaction. This can create serious risks for brands, from poor email deliverability to reputation damage.
Deliverability Risks
Using improperly obtained customer data can hurt your ability to reach inboxes—and once sender reputation is damaged, it’s hard to recover.
Higher bounce rates from incorrect or outdated email addresses.
Increased spam complaints from unwanted communications.
Risk of getting blacklisted by email providers.
Brand Perception Risks
Customers expect transparency when it comes to their data. If they feel their information is being used without their knowledge, trust erodes—fast.
Surprise at receiving unexpected marketing emails.
Frustration when realizing their data was collected without consent.
Negative social media feedback and potential PR fallout.
Compliance Concerns
With privacy laws evolving, aggressive data collection can put brands at risk of regulatory violations, fines, and legal challenges.
Non-compliance with GDPR, CCPA, and other regulations.
Potential financial penalties.
Need for ongoing legal oversight.
Uncertainty around future privacy laws and enforcement.
The Power of Consent-based Recognition
A sustainable approach to identity resolution focuses on making the most of customer interactions that are freely given. The result? Stronger relationships, better personalization, and long-term business success.
Enhanced Customer Experience
Recognizing customers based on real interactions—not inferred data—makes personalization more relevant and natural. This creates seamless omnichannel experiences, builds trust, and ensures privacy preferences are respected.
Better Business Outcomes
Consent-based data isn’t just an ethical choice—it’s a strategic advantage. Brands that rely on high-quality, first-party customer data see stronger engagement, more accurate profiles, and long-term customer loyalty.
Future-proof Compliance
Privacy regulations will continue to evolve, but brands that embed compliance into their data strategy stay ahead. By prioritizing transparency and customer control, they reduce risk and build lasting trust.
Looking Ahead: The Evolution of Ethical Identity Resolution
The future of identity resolution isn’t about collecting more data—it’s about using it more effectively. That means prioritizing privacy, transparency, and responsible data management.
Technology Evolution
Technology evolution describes the ongoing development of more sophisticated and privacy-preserving methods for customer recognition. This continuous improvement ensures better results while maintaining ethical standards.
More sophisticated server-side solutions
Better privacy-preserving techniques
Improved cross-device recognition
Enhanced security measures
Cultural Shifts
Cultural shifts represent the changing expectations around privacy and data use among both consumers and businesses. Understanding and adapting to these shifts is crucial for long-term success.
Growing emphasis on transparency
Increased value placed on consent
Rising importance of trust
Focus on long-term relationships
Business Adaptation
Business adaptation encompasses the strategic changes organizations must make to thrive in a privacy-first world. This evolution requires rethinking traditional approaches to customer data and marketing.
New metrics for success
Different approaches to customer acquisition
Changed expectations around data collection
Evolution of marketing strategies
The debate over whether identity resolution is “Big Brother” or a helpful tool misses the point. The real question isn’t whether brands should use identity resolution—it’s how they use it.
The brands that win will be the ones that prioritize transparency, consent, and real customer relationships.
Chapter 05
Conclusion: Turning Recognition into Results
In today’s digital landscape, recognizing your customers isn’t just an advantage, it’s a necessity. With privacy restrictions reshaping marketing strategies, brands can no longer rely on traditional tracking methods to engage and convert shoppers. That’s where identity resolution comes in.
It’s no longer optional. Identity resolution is the key to retaining more customers, making marketing spend more efficient, and creating seamless shopping experiences that drive revenue. Brands that embrace a privacy-first, data-driven approach gain a competitive edge – building trust, boosting engagement, and future-proofing their strategy in a world where third-party tracking is disappearing.
The Yotpo x Black Crow AI Advantage
Recognizing your customers is just the first step, but putting that data into action is what drives results. That’s why Yotpo and Black Crow AI have partnered to give Shopify brands the data they need to engage more effectively with their customers.
Yotpo and Black Crow AI are partnering together exclusively to offer brands free access to over $12k worth of tech, just by becoming a Yotpo SMS & Email customer.
We’re giving annual SMS & Email brands free access to Black Crow AI’s List Growth & Identity Resolution tools– plus significant discounts on other tools– unlocking powerful functionality to:
Identify 100% of your site visitors.
Recover 55% more abandoned cart revenue with precise, first-party data.
Grow your subscribers 3x faster with predictive AI-powered list growth.
Increase repeat purchase by 15% with more effective cross-sell and repurchase optimization.
Together, we’re helping brands reach more shoppers, convert more sales, and drive higher lifetime value while staying privacy-compliant.