In an era of increased standards of the new market reality, companies are awakening to the value of digital identity as a major differentiator for consumer experience.
While savvy business owners are relying on consumer data to make strategic decisions, consumers are also realizing the true power of their digital identities.
Clearly, there’s a wave of digital transformation in the making. And that's a great reason to feel good about!
Consequently, companies are bringing together the ease of use, accessibility, privacy, and control of consumer data in their day-to-day activities to drive the massive transformation.
Consumer experience on digital platforms is an increasingly important metric to consider. It helps businesses and companies to deliver value to the consumer. This increases consumer attraction and retention. With an estimated 20 to 25 billion digitally connected smart devices by 2021, there is a lot to gain focusing on user experience.
Due to this, the digital identity management of consumers is changing. It is moving from focusing purely on security and privacy measures to also incorporate consumer engagement. Examples can be found in industries ranging from e-commerce to banking.
These businesses are now moving toward incorporating strategies that attract and retain customers. This new goal increases the delivery of value and ensures the growth of businesses.
In this sense, businesses need to realize that they need to build customer trust. To do so, they must consider both the security of the consumer’s identity and the maintenance of a seamless user experience. Tying sufficient privacy and security measures to a customer’s identity, as well as enabling a good customer experience, are necessary to scale a business in the modern age.
This is the digital transformation that is taking place in every industry. Secure digital identity is merging with better user experience and driving digital transformation.
There are a plethora of industries adopting this new approach to user identity. They realize the worth of protecting digital identity while enhancing user experience.
An example is the healthcare industry. A person’s digital identity can help streamline the process of immediate healthcare. It can help the medical facility and doctors to track the person’s health, reduce human error, and more. This is especially important within the age of COVID-19 where there is a need for fast contact tracing systems and Telehealth services.
Another prominent example is the banking industry, which has moved to provide a better user experience. This aligns with the movement from traditional banking to online digital banking. Digital identity can be tied to a multitude of services offered by the person’s bank. This helps to create elevated ease of use alongside the security that banks provide.
There are several digital trends spurring these digital transformations. They include the explosions in Big Data, computational capabilities, machine learning algorithms, data analytics, and connectivity improvements. Even the notion of smart cities integrating all our shared digital information will gain increased traction in 2020.
The movement of decentralized blockchain technology from its traditional home in cryptocurrencies to other services can also facilitate increased digital identity security and privacy. This can then align with improving the customer experience.
Lastly, digital privacy has come under the spotlight recently due to the failures of companies in securing user data. There is an increased awareness of the need for digital identity protection. As such, this has facilitated a movement toward better protection and user experience.
The trends mentioned above have altered the digital landscape. According to a Deloitte study, companies are starting to focus more of their efforts on digital transformation. These include access management, consumer identity, and advanced authentication.
As an everyday example, it’s estimated that about 70% of online shopping items are abandoned in their carts before purchase. This is more than likely due to negative customer experience. As a result, businesses lose vast amounts of money in revenue each year.
This points toward the need for better user experience and more secure digital customer identity.
How is digital transformation facilitating changes in customer experience? First off, investing in off-site cloud technology provides a flexible and agile environment for seamless customer experience.
Secondly, personalized customer experiences have been leveraged for increased customer retention. Customers tend to come to expect a specific type of service due to changes in digital technologies. Monitoring the information tied to their digital identity allows for better user experience. This is all driven by computational data and algorithms.
Customers want as frictionless and seamless an experience as possible. They are increasingly online and capable of utilizing the technology available to them. By tying the integration of multiple services on these technologies to the secured digital identity of the customer, businesses can achieve better user experience.
It is clear that there is a need for the integration of secure and private digital identities and customer experience. Business leaders are quickly realizing that they need to focus on building trust in their system.
By elevating user experience and securing digital identities, business leaders can foster brand loyalty. They can achieve this through better data governance and the use of single sign-on (SSO), multi-factor authentication (MFA), and others. Doing so will build deeper relationships between their business and their customers. This digital transformation also results in increased sales and more opportunities for scaling.
Utilizing customer identity and access management (CIAM) platforms, like LoginRadius, can help business leaders do just that. These platforms can help businesses to better manage their customers’ identities and profiles. In addition, they facilitate secure access to their applications.
Business leaders need to seize this opportunity to better their product. To do this, they need to take digital identity management into account. If they don’t, their businesses could suffer in the long-term.
The management of digital identity is an important fundamental component of the future. Thus, it’s important that businesses utilize sophisticated identity management software. This will help them to enhance the security and privacy of digital identities.
Rakesh Soni is CEO of LoginRadius, a leading provider of cloud-based digital identity solutions. The LoginRadius Identity Platform serves over 3,000 businesses and secures one billion digital identities worldwide. LoginRadius has been named as an industry leader in the customer identity and access management space by Gartner, Forrester, KuppingerCole, and Computer Weekly. Connect with Soni on LinkedIn or Twitter.