Did you know that only 14% of organizations have achieved a 360-degree view of the customer? This is what a study by Gartner, Inc found. However, 82% of respondents said they still aspire to attain this goal. We maintain that knowing your customer is everything. But how you identify and engage them depends on the type of data you use. Some companies believe it’s important to know every single data point. However, we believe that could muddy the waters or become overwhelming. Benjamin Bloom, vice president analyst in the Gartner Marketing practice has said, “Marketing teams have been engaged in a data arms race over the past decade, attempting to use technology to collect every conceivable data point on customers with the assumption that more data is better.” Let’s dive into two different types of data that can help companies achieve their goals.
With third-party cookies becoming more limited and privacy regulations tightening, B2C marketers must rethink their data strategies to maintain personalization without compromising consumer trust.
So, how do these two data types differ, and how should marketers leverage them? Let’s break it down.
Deterministic data is explicitly verified and tied to a known individual. This data comes directly from customer interactions, such as:
Because this data is confirmed by the consumer, it’s highly accurate and reliable for precise targeting and personalization.
A fashion retailer collects deterministic data through its loyalty program. When customers log in, their purchase history, browsing behavior, and size preferences are stored.
🔹 Marketing opportunity: Send personalized product recommendations based on previous purchases and past interactions.
💡 Stat: 87% of consumers are more likely to buy from retailers that remember their preferences (Accenture).
Probabilistic data is inferred based on patterns, behaviors, and statistical models. It uses:
Because probabilistic data is modeled, it’s not 100% accurate, but it scales well—allowing marketers to expand reach beyond known customers.
A streaming service wants to find new potential subscribers. Since it only has first-party subscriber data, it uses probabilistic modeling to find similar users based on shared browsing habits and demographics.
🔹 Marketing opportunity: Serve relevant ads to people with a high likelihood of subscribing.
💡 Stat: Probabilistic identity resolution has 60-90% accuracy, depending on available data sources (LiveRamp).
Brand: A luxury skincare company Challenge: Customers research products online but buy in-store, making it hard to track purchase intent. Solution:
Results:
💡 Stat: Omnichannel personalization increases revenue by 10-30% (BCG).
Use deterministic data when: ✔ Running loyalty programs or CRM-based campaigns ✔ Personalizing offers for known customers ✔ Sending email/SMS marketing
Use probabilistic data when: ✔ Expanding reach beyond existing customers ✔ Running programmatic advertising ✔ Tracking cross-device consumer journeys
With third-party cookies becoming limited, marketers need to rely more on deterministic first-party data, but probabilistic modeling remains crucial for scaling efforts.
💡 Stat: 75% of marketers say they need to shift toward first-party data strategies in the next two years (Salesforce).
To succeed in today’s privacy-focused world, B2C marketers must balance deterministic and probabilistic data to deliver personalized, scalable, and compliant experiences.
Key takeaways:
Ready to optimize your data strategy? Let’s discuss how to activate deterministic and probabilistic data for smarter marketing.
As Content Marketing Manager, Natasia is responsible for helping strategize, produce and execute Data Axle's content. With a passion for writing and an enthusiasm for data management and technology, Natasia creates content that is designed to deliver nuggets of wisdom to help brands and individuals elevate their data governance policies. A native New Yorker, when Natasia is not at work she can be found enjoying New York’s food scene, at one of NYC’s many museums, or at one of the city’s many parks with her two teacup yorkies.