I use names when specificity is needed. E.g., if I’m in a room with two other people, and I want to address only one of them, I’ll use a name (or nickname if there is one) to clarify who I am addressing.

If I’m in a room with only one other person, then using a name to address them would be redundant, unless I am not getting their attention otherwise (e.g., they’re engrossed in a book).