Unlocking customer identity: Securing data and enhancing strategy in the digital era

Customer identity has become a critical component of modern business strategy. Beyond simple user verification, it playing a key role in personalising experiences, building trust, and driving customer loyalty. Experts from ClearPoint and Okta, GM of Software Engineering Dave Shepherd and Principal Solution Engineer April George, talk about strengthening customer identity solutions and what it means for an organisation in enhancing user security, streamlining the customer journey, and driving deeper engagement.

In a digitally focused world, customer identity has become a key foundation of successful business. It's no longer just about verifying users; it's about creating personalised experiences, building trust, and driving customer loyalty. How does customer identity evolve over the years and what are the key benefits of modern cloud-based customer identity solutions? 

Watch or listen to our podcast where ClearPoint’s GM of Software Engineer Dave Shepherd and April George, Principal Solution Engineer from ClearPoint Solution Partner Okta, talk about the evolution of customer identity.

From on-premise to the cloud

Historically, managing customer identities was done in-house with outdated systems that were often difficult to use and expand. These fragmented systems struggled to keep up with the fast growth of online business and the increasingly complex ways customers interact with companies.

"When I started, it was sort of at the boom of the internet era," April George, Principal Solution Engineer at Okta, recalls. "Everyone was used to doing their own transactions. And then as we've seen over time there were more and more platforms that grew out of the internet age."

The advent of cloud computing marked a significant shift in the landscape of customer identity, offering organisations a more agile and scalable approach. As businesses expand their digital presence, cloud-based solutions offer distinct advantages over traditional on-premise systems, including:

1. Scalability: Cloud-based platforms and solutions can easily adapt to changing business needs, accommodating both growth and fluctuations in customer traffic. This is particularly important for businesses that experience seasonal peaks or rapid growth.
   
   
2. Security: Cloud-based providers invest heavily in security measures to protect customer data from breaches and unauthorised access. They often have dedicated security teams, advanced threat detection capabilities, and regular security audits in place.
   
   
3. Cost-effectiveness: Cloud-based solutions can be more cost-effective than on-premise systems, especially for small and medium-sized businesses. They often have lower upfront costs and offer flexible pricing models that align with your business needs.
   
   
4. Improved user experience (UX): Cloud-based identity solutions can provide a seamless and consistent experience across multiple devices and channels. This can lead to increased customer satisfaction and loyalty.

As David Shepherd, General Manager of Software Engineering at ClearPoint, noted, "One of the reasons for needing a more comprehensive solution is to give you some confidence and some protection." 

The migration to cloud solutions is a necessary step for businesses aiming for growth. Investing in reputable cloud technologies not only gives that next level of control, it also provides an opportunity to further grow the business through secured customer data.
 

Key trends in customer identity

As customer problems emerge, the solution also continues to evolve. “You've got systems on top of systems - you've got a loyalty system or you've got a sales system. And customers would start out with a different login for both different profiles and then they realise that it's the same customer they're talking to," says Dave, stating a now common challenge faced by businesses. This fragmentation of identity systems made it difficult for businesses to provide a consistent and personalised experience for their customers. Rather today’s customer key trends are:

1. Personalisation: Businesses are increasingly using customer identity data to deliver personalised experiences, such as tailored product recommendations, targeted marketing campaigns, and personalised content. This helps to build stronger relationships with customers and increase customer loyalty.
   
   
2. Security: Strong security measures, including multi-factor authentication (MFA) and biometrics, are essential to protect customer data and prevent unauthorised access. As cyber threats become more sophisticated, businesses must invest in robust security measures to safeguard their customers' information.
   
   
3. Privacy: As privacy regulations like GDPR and CCPA become more stringent, businesses must be transparent about how they collect and use customer data. Customers are increasingly demanding control over their personal information, and businesses must comply with privacy laws to avoid fines and reputational damage.
   
   
4. Digital Identity: The emergence of digital identities, such as government-issued digital IDs, is changing the way we interact with online services. Digital identities can provide a more secure and convenient way for customers to verify their identity and access online services.
   
   

The future of customer identity

As countries, businesses, and people more and more prefer paperless processes and documents, likewise, customer identity management is expected to advance. One key trend is the increasing use of biometric authentication methods, such as facial recognition and fingerprint scanning, which offer a highly secure and convenient way for users to verify their identity. As April explains, “I have spoken to different transportation airlines, etc, and they're really starting to make steps into fully paperless travel. So no longer needing a physical passport in some locations and actually making that whole experience digital. That is all customer identity on the surface.”

Another emerging trend is the integration of identity management systems with Internet of Things (IoT) devices. As IoT continues to expand, there will be a growing need for secure and seamless authentication across these devices. We can also anticipate enhanced privacy controls, as customers demand greater control over their personal data. “That customer's rights to control their information, their identity that they've given the organisation they're interacting with, or the ability to be forgotten if they decide, ‘Actually, I don't want any of my details with you anymore, can you give it all back to me?’” Dave points out. In response, businesses must adapt their privacy practices to meet these expectations.

The evolution of customer identity has been driven not only by technological advancements, but more primarily by changing customer needs and expectations. These, likewise, are resulting in an evolution of regulatory requirements for data security. 

Cloud-based customer identity solutions have played a crucial role in enabling businesses to manage customer identity effectively and securely. Embrace and invest in modern identity management solutions and start building stronger relationships with your customers, drive growth, and stay competitive. Contact us today.