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OpenText™ "The importance of consumer IAM in the world of the digital-savvy customer"
Consumer Identity and Access Management (CIAM), also known as B2C IAM, is still relatively new but it is rapidly becoming a ‘must have’ for any customer-focused business. It sets the foundation for an enterprise to deliver great customer experiences while creating the ideal balance between convenience and security. In the first of our CIAM blog series, I want to look at why the technology is important and what it can offer to your organization.
CIAM technology evolved to suit a need for more security, control and visibility of data and information related to customer identities. Traditional IAM, like the kind used for employees to connect to internal and cloud-based resources, provides great system security but falls well short of customer-specific requirements such as consent, preference and privacy management. What’s more, this type of identity solution lacks the performance and scale to meet the needs of potentially millions of consecutive customer interactions. It didn’t take long for the organizations that are using B2C IAM to realize that, in addition to enhanced security, they also had much more visibility into their customer behavior – a must for customer-obsessed companies.
Customers today want convenient, omni-channel, personalized and secure experiences when they deal with your organization. PwC’s ‘Experience is Everything’ demonstrates the value of getting this right. According to the report, 73% of respondents said a good experience was key to their brand loyalty and 52% said they would spend more for a fast and efficient customer experience. In fact, PwC states that excellent customer experience adds a 16% price premium on products and services worldwide.
If you don’t meet these requirements, customers are more than happy to find someone who will. Forbes puts the figure at 92% of people who stop interacting with a company after three or four poor experiences. Interestingly, that goes beyond a consistent, omni-channel experience to encompass how secure the service is perceived to be. Cisco has shown that in 2016, 22% of companies that experienced data breaches lost customers – 40% of those lost over a fifth of their customer base!
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