GTM Dictionary

The Go-to-Market Dictionary: Cross-Device Tracking

Discover the importance of cross-device tracking in your go-to-market strategy with our comprehensive dictionary.

In today's digital world, customers don't always interact with businesses through a single device. They may browse a website on their smartphone, research a product on their work computer, and then make a purchase on their tablet. This creates a challenge for businesses looking to understand each touchpoint in the customer journey. Luckily, cross-device tracking has emerged as a solution to help businesses better understand their customers. In this article, we'll explore what cross-device tracking is, how it works, and the benefits and limitations that come with it.

Understanding Cross-Device Tracking

What is Cross-Device Tracking?

Cross-device tracking is a method of tracking customer interactions across multiple devices. By doing so, businesses can gain a more complete understanding of how their customers are engaging with them. This can include tracking website visits, app usage, and purchase behavior.

For example, let's say a customer visits a business' website on their laptop and adds a product to their cart, but doesn't complete the purchase. Later, they receive an email with a personalized advertisement for the same product on their phone and decide to make the purchase. Cross-device tracking allows the business to see that the customer's initial interaction with the product occurred on their laptop, but the final purchase was made on their phone.

The Importance of Cross-Device Tracking in Marketing

Understanding a customer's journey across devices is increasingly important for marketers. According to a report by Google, 90% of consumers use multiple screens sequentially to accomplish a task. This means that in order to provide a seamless customer experience, businesses need to understand how a customer is using each device.

Moreover, cross-device tracking is essential to provide personalized advertisements. Knowing how a customer interacts with a businesses' ads on each device can help marketers create more relevant and engaging ads that are tailored to their interests and needs, ultimately leading to higher conversion rates.

For instance, if a customer frequently searches for healthy recipes on their laptop and then switches to their phone to browse social media, a business can use cross-device tracking to show them an advertisement for a healthy meal delivery service on their phone. This personalized advertisement is more likely to catch the customer's attention and lead to a conversion.

How Cross-Device Tracking Works

Cross-device tracking works by using various methods to link a customer's interactions across different devices. These methods can include deterministic, probabilistic, or hybrid approaches.

Deterministic cross-device tracking uses known identifiers, such as a customer's email address or login credentials, to link their interactions across devices. For example, if a customer logs into a business' website on their laptop and then logs in on their phone using the same email address, the business can link those interactions together.

Probabilistic cross-device tracking uses statistical models to make educated guesses about which devices belong to the same customer based on factors such as IP addresses, device types, and browsing behavior. For example, if a customer frequently uses a laptop and a phone on the same Wi-Fi network, it's likely that those devices belong to the same person.

Hybrid approaches combine both deterministic and probabilistic methods to achieve the most accurate cross-device tracking possible.

Types of Cross-Device Tracking Methods

Cross-device tracking is a powerful tool used by businesses to understand how users interact with their brand across different devices. It allows businesses to deliver a more personalized and seamless experience to their customers. There are three main types of cross-device tracking methods: deterministic, probabilistic, and hybrid.

Deterministic Cross-Device Tracking

Deterministic cross-device tracking is a method that uses user information that is already available to link their devices. This can include login credentials, such as an email address or phone number. By using this information, businesses can confidently link a user's interactions across devices. For example, if a user logs into their account on their phone and then later logs into the same account on their laptop, the business can link those two devices together and understand that it is the same user.

One advantage of deterministic cross-device tracking is its accuracy. Because businesses are using known information to link devices, they can be more confident in their results. However, this method does require users to log in or provide personal information, which could be a barrier for some users.

Probabilistic Cross-Device Tracking

Probabilistic cross-device tracking is a method that uses statistical methods to link devices. This method analyzes various factors, such as device type, browser type, and IP address, to determine the likelihood that two devices are linked to the same user. For example, if two devices are frequently used in the same location and have similar browsing patterns, it is more likely that they are used by the same user.

One advantage of probabilistic cross-device tracking is that it does not require users to log in or provide personal information. This makes it a more privacy-friendly option. However, because it is based on statistical analysis, there is a greater chance of error compared to deterministic cross-device tracking.

Hybrid Cross-Device Tracking

Hybrid cross-device tracking is a method that combines both deterministic and probabilistic methods to link devices. By using multiple sources of data, businesses can improve the accuracy of their cross-device tracking efforts. For example, they may use login credentials to link devices when possible, but also use statistical analysis to link devices when login information is not available.

One advantage of hybrid cross-device tracking is that it can provide a more comprehensive understanding of user behavior across devices. By using both deterministic and probabilistic methods, businesses can get a more complete picture of how users interact with their brand.

In summary, cross-device tracking is an important tool for businesses to understand how users interact with their brand across different devices. Deterministic, probabilistic, and hybrid methods each have their own strengths and weaknesses, and businesses should carefully consider which method is best for their needs.

Benefits of Cross-Device Tracking for Businesses

Cross-device tracking has become increasingly important in the digital age. With consumers using multiple devices to browse and make purchases, it's crucial for businesses to be able to track customer behavior across different devices. Here are some of the key benefits of cross-device tracking for businesses:

Improved Customer Experience

One of the biggest benefits of cross-device tracking is the ability to provide a more cohesive and personalized experience for customers. By understanding a customer's behavior across different devices, businesses can tailor their marketing efforts to better suit their needs and preferences.

For example, if a customer leaves items in their cart on their phone but completes their purchase on their laptop, cross-device tracking can help businesses provide a reminder to complete their purchase when the customer logs in to their laptop. This can help reduce cart abandonment rates and improve overall customer satisfaction.

Enhanced Marketing Attribution

Cross-device tracking allows businesses to more accurately attribute marketing efforts to customer behavior. By understanding which ads and channels are driving the most conversions on each device, businesses can optimize their marketing strategies and allocate resources more effectively.

For instance, if a customer sees an ad on their phone but completes their purchase on their laptop, cross-device tracking can help businesses attribute the conversion to the correct ad and channel. This can help businesses make more informed decisions about where to allocate their marketing budget.

Increased Conversion Rates

Another key benefit of cross-device tracking is the ability to deliver personalized and relevant advertisements to customers. By tracking a customer's behavior across different devices, businesses can tailor their ads to better suit their interests and preferences.

When a customer receives an ad that is tailored to their interests, it is more likely to result in a conversion. This can help businesses increase their conversion rates and drive more sales.

Optimized Ad Spend

Finally, cross-device tracking can help businesses optimize their ad spend by understanding which devices and channels are driving the most conversions. By focusing their efforts on the most effective channels, businesses can save money and avoid wasting resources on less effective channels.

Overall, cross-device tracking is a powerful tool for businesses looking to improve their marketing strategies and provide a better customer experience. By understanding customer behavior across different devices, businesses can deliver more personalized and relevant advertisements, increase conversion rates, and optimize their marketing spend.

Challenges and Limitations of Cross-Device Tracking

As the world becomes increasingly digital, businesses are constantly seeking ways to better understand their customers and improve their marketing strategies. One such method is cross-device tracking, which involves tracking a user's behavior across multiple devices, such as smartphones, laptops, and tablets. While cross-device tracking can provide valuable insights, there are also several challenges and limitations that businesses must consider.

Privacy Concerns and Regulations

As with any tracking method, there are privacy concerns associated with cross-device tracking. Businesses must ensure that they are complying with various regulations, such as GDPR, and that they are transparent with customers about how their data is being used. Failure to do so can lead to legal and reputational consequences.

Additionally, customers may be wary of cross-device tracking and may choose to opt out if they feel their privacy is being violated. This can limit the amount of data that businesses are able to collect and may impact the accuracy of their insights.

Data Accuracy and Reliability

While cross-device tracking can provide valuable insights, it is not always 100% accurate. Probabilistic methods in particular can have a higher margin of error. As such, businesses should understand the limitations of the data they collect and use it in conjunction with other information to make informed decisions.

Furthermore, the accuracy of cross-device tracking can be impacted by a variety of factors, such as changes in a user's behavior or the use of multiple devices by multiple users. Businesses must be aware of these limitations and adjust their strategies accordingly.

Technical Implementation

Implementing cross-device tracking can be complex and requires technical expertise. Businesses may need to work with vendors, hire additional staff, or invest in new technology to effectively implement cross-device tracking.

Furthermore, the technical implementation of cross-device tracking can impact its accuracy and reliability. Businesses must ensure that they are using the appropriate methods and technologies to collect and analyze data.

In conclusion, while cross-device tracking can provide valuable insights into customer behavior, businesses must be aware of the challenges and limitations associated with this method. By understanding these factors and taking steps to address them, businesses can make informed decisions and improve their marketing strategies.

Conclusion

Cross-device tracking offers a solution to the challenge of understanding a customer's journey across multiple devices. By implementing cross-device tracking, businesses can provide a personalized and seamless experience, optimize their marketing spend, and gain insights into customer behavior. While cross-device tracking is not without its challenges, it can provide valuable insights when used properly.