The modern digital landscape has offered endless business opportunities to organizations ready to jump on the digital transformation bandwagon.
However, the risks associated with digitalization can’t be overlooked.
Whether we talk about the rapid adoption of the cloud or the incorporation of the IoT ecosystem with legacy systems, every organization's business strategy emphasizes delivering seamless customer experiences.
While these technological advancements may pave the way for customer satisfaction regarding user experience, they aren’t the one-stop solution in the longer run, especially regarding cybersecurity.
Cybersecurity is a massive challenge for every organization collecting and storing customer details. And what’s more worrisome is that most businesses aren’t aligning their customer experience strategy with their overall cybersecurity strategy.
And here’s where they fall behind their competitors!
Creating a perfect harmony between user experience and security is undoubtedly the need of the hour. And here’s where the crucial role of identity management comes into play.
With robust customer identity and access management solutions, businesses can ensure they can securely collect, store, and manage customer identities and sensitive information. And this helps in cementing long-term relationships.
Let’s understand how leveraging identity management reshapes business and customer relationships in the modern era.
While digital innovation and seamless connectivity are the driving force for a business in today’s world, the protection of sensitive data and the establishment of trust have become paramount.
And when we talk about building lasting relationships, identity management plays a crucial role. But how does securing customer identities could help build trust?
Well, global data regulations like the GDPR and CCPA demand that businesses comply with their laws and securely handle and store sensitive customer data.
Hence, organizations that aren’t yet compliant with these regulations can’t serve their customers in countries/states with strict data protection and privacy laws. They need an identity management solution that can offer them the necessary features that make them adhere to every stringent regulation.
Here are some prominent reasons why enterprises must gear up for adopting a reliable identity management solution:
The rapid adoption of cloud services has undoubtedly led to a dispersed digital landscape, necessitating identity verification, and management solutions to ensure safe and secure access to platforms/apps.
As more organizations move to the cloud, cybercriminals are finding ways to breach frail authentication systems, impacting business growth and eventually tarnishing brand reputation. And thus, breaks the customer's trust.
As discussed above, cybercriminals are rapidly exploring new ways to exploit customers’ identities for financial and other benefits. And this poses a severe challenge for organizations dealing with millions of customer identities.
Whether we discuss phishing or brute force attacks, customer identities are always at risk. And brands that haven’t incorporated appropriate security measures, including MFA, are always at a higher risk of identity theft.
Another reason to rethink your identity strategy is the increasing complexity and stringency of global data privacy and security regulations.
Enterprises serving their customers in different countries and states must ensure that they adhere to their local data privacy and security regulations. And for this, they must offer adequate security to their customers through MFA, data encryption, data localization, etc.
With the true potential of identity management, businesses can yield several benefits when building stronger relationships with their customers. Here’s how it helps drive overall business success:
One of the enterprises' most significant challenges is ensuring robust authentication security for their customers since cybercriminals are bypassing frail defense mechanisms.
Adding multiple layers of multi-factor authentication (MFA) helps businesses secure their customers’ identities against phishing and similar attacks.
A reliable customer identity management solution can add MFA to the current system. It can also reinvent the customer authentication experience since it facilitates passwordless authentication, biometric authentication, and more.
Another big challenge among businesses is to deliver and maintain a great user experience across their various platforms since the legacy systems aren’t much user-friendly, and the overall authentication process involves a lot of friction.
With identity management systems, brands can deliver a richer experience to their customers through cutting-edge authentication mechanisms, including social login, passwordless login, phone login, and email authentication.
These authentication mechanisms remove friction from the overall authentication journey leaving your customers easily choose their preferred login method. Hence, you can build customer loyalty and trust in the long run.
Modern customer identity management systems have adaptive MFA that reinforces the authentication mechanism in high-risk situations.
With adaptive authentication, businesses can secure their customer identities even if one or more layers of authentication are compromised.
Adaptive authentication works by analyzing any unusual behavior in login attempts. This can be the number of attempts, the type of device requesting access, or a new geographical location for accessing an account. Once any suspicious authentication attempt is detected, the system automatically adds another layer of authentication. Hence, the customer account remains safe.
Also, it removes the friction of going through multiple authentications since additional layers of authentication are added only when required.
Identity management is undeniably the cornerstone of modern business strategy in the ever-expanding digital world since it clutches the transformative power of establishing trust, managing security, and compliance.
Businesses thinking about fostering lasting relationships with their customers couldn’t ignore the true potential of identity management to navigate the complexities of the modern digital era.
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.