Many people equate digital identity with login, and this can lead to missed business opportunities. When identity and access management is done right, it will grow customer liability and, eventually, sales.
Digital identity is a collection of data about the user
A digital identity consists of identification and profile data collected on a customer and an identifier that can be shared with sales processes and background systems.
You can link a digital identity to information on the user’s relationship with other sales-related data. Typically, this information includes the customer relationship(s) connected to the identity. Customer relationship information in itself is stored in a customer relationship management (CRM) system.
Information on connections between digital identities can also be collected for utilization in service production and business operations. For instance, parents can be added as legal guardians of their underage children, enabling them to set restrictions on transactions performed by the children. Alternatively, transactions initiated by the children can be submitted to the parents for approval. At the same time, information on family connections can be garnered.
Customer information is the new plutonium — so take care of it
Data acts as a fuel to digital business, but when privacy issues are overlooked, the fuel will not end up in the tank. Digital service should inform the customer on how the data is used and ask customer consent in a clear way.
A well-executed digital identity contributes to data privacy and improves the customer experience, thereby strengthening the customer’s trust in the service provider. This also makes it more likely for customers to be willing to provide the service provider with information on themselves.
When you connect an identified user’s transactions via various channels to a digital identity, you can take your knowledge of your customers to the next level. As long as you take into account matters relating to consent on disclosure of data, you can utilize customer information for analytics.
Digital identities play a major role in digital business
Many operators — even large international ones — are yet to grasp the importance of the customer experience in the creation and utilization of digital identities. Major online stores still rely on passwords for registration and login, and sessions created in their app cannot be accessed via a mobile browser. Typically, their systems do not support customer relationships based on family or agent relationships. On the other hand, the same user may have separate identities as a private and corporate customer.
A well-planned identity and access management offers you an opportunity to compile the information on your customers in a single location where it is easily available for business purposes. We can safely say that for digital business, the digital identity represents an essential bridge between a customer and customer information, contracts, and representation.
Smart IAM benefits everyone
Customer information accumulated through digital identities can give you a competitive edge over other operators in your sector. Therefore, well-kept identity and access management benefits the citizen worrying about privacy, the customer seeking seamless digital services, and the service provider reaching for higher sales.
How will your service make the most of the opportunities offered by digital identities? Test your company’s IAM level in 3 minutes: nixu.com/DI