Is Your CIAM Solution Meeting Your Customer Needs?
Written October 24, 2022
Customer identity and access management (CIAM) solutions have emerged as a top concern for both businesses and public entities as they strive toward digital transformation. Governments are modernizing so that their services can be accessed conveniently and without hassle, banks are changing so that they can support open banking, and the healthcare industry is changing so that medical information may be made digitally available. According to Aberdeen Strategy and Research, adding CIAM into the digital customer experience has a cumulative impact that leads to increased total revenue as well as higher lifetime value per customer. CIAM stands for customer interaction and experience management.
An effective CIAM solution immensely benefits an organization by ensuring that every digital connection is safe and smooth. It also assists businesses in better comprehending the way their clients and customers choose to purchase online. Consumers can change their own passwords and alter their preferences for their personal profile, manage consent instead of having to share all their data, marketing opt-ins, and authentication methods when a modern CIAM solution is implemented. This reduces the amount of friction experienced by customers. Considering these benefits, it should be evident that any modern company or public organization would want to leverage an appropriate CIAM system as they embrace digital transformation, but how can we determine what constitutes a strong CIAM?
Selecting the appropriate CIAM product or determining if it is time to jettison your legacy solution can be difficult, particularly if you are unaware of what to look for in a product of this sort. In this piece, we will look at some of the most important features and capabilities that a contemporary CIAM solution ought to provide, with the goal of helping you simplify the process of purchasing and or upgrading your existing CIAM and ensuring that you make the best choice for your organization.
Benefits of a Modern CIAM
One of the most significant advantages of a contemporary CIAM system is that it is offered through the cloud, which provides you with better scalability, stability, and security. According to the findings of a recent survey conducted by Adobe, businesses that have omnichannel customer engagement strategies that are particularly strong have experienced three primary business benefits: an increase of 10% in year-over-year growth, an increase of 10% in average order value, and a 25% increase in close rates. With a consolidated customer profile, CIAM enables businesses to provide customers with a consistent and personalized experience, which in turn increases the potential for cross-selling and upselling.
Furthermore, modern CIAM solutions often provide a more seamless integration experience with third-party applications. Legacy IAM systems are incapable of handling this level of CIAM capabilities without extensive customization and additional investments as new hardware and technician time are required. Regulations are another component in the digital transition that legacy CIAM solutions struggle with. These regulations include those pertaining to Know Your Client (KYC), customer permission and preferences, data security, and anti-money laundering (AML). According to a research study that was published in 2018, in the preceding ten years, monetary penalties of $26 billion have been levied on businesses for failing to comply with AML, KYC, and sanctions requirements.
The following benefits accrue to both companies and their clientele as a result of the implementation of a modern CIAM system:
A Simplified Approach to Customer Service
When a company cares about its customers and strives to make its login process as simple as possible, it shows that it is modern and progressive. Customers are more likely to use additional digital products and services if they can easily access all services with a single login. In the end, the consumer will be more invested in your digital environment with little to no more work on your part.
Availability and Capacity to Grow
With a single, streamlined customer identity management system that is completely managed for you, you can maximize the system's stability while simultaneously minimizing the number of resources that are required. It is considerably easier to add new services as they become accessible online when you have a single authentication system for all your services. A cloud system can rapidly scale up or down based on your consumption, and automatic failover may reduce downtime to almost nothing, which can be a significant benefit.
Improved and Intelligent Security Features
A standard CIAM system has key security features that protect both access to data and access to accounts. For example, risk-based authentication tracks each customer's use and login trends, making it easier to recognize suspicious (and fraudulent) activity. Multi-factor authentication (MFA) adds security. MFA confirms a customer's identification via a second step, such as an SMS code or email link.
You can use multi-factor authentication (MFA) when you need an extra layer of security. MFA verifies a customer's identity by requiring a second step, like entering an SMS code or clicking a link in an email. Your secure login procedures give customers peace of mind that it's safe to use your services, which is important given how many public data breaches are in the news.
Compliance with privacy regulations is an essential component of every online business and an essential facet of any organization that deals with consumer data. The General Data Protection Regulation (GDPR) of the European Union and the California Consumer Privacy Act (CCPA), which were only recently implemented, are just two examples of privacy regulations that have a worldwide reach and affect any data traveling into or out of the EU. Several nations in Western Europe have either enacted or are in the process of passing regulations and legislation that are quite similar to one another, and the rest of the globe is quickly coming up.
You are required to remain in compliance with these requirements if you run an internet business and want to ensure that it will continue to be profitable in 2020 and beyond. With a contemporary CIAM system, you may fulfill these privacy needs and more while reducing expenses.
Unified customer view
When you integrate the data that has been obtained from all your services and websites, you are able to obtain a comprehensive perspective of each individual consumer. If you know everything a customer has done after visiting your site, you'll have access to real-world data in astounding detail.
You may make use of this information to track customer journeys across numerous applications and services, develop marketing personas that are reflective of your consumers, build new goods or special offers, and guide your customers toward decisions that will benefit both of you. When you know your customers well, you can better serve them and interact with them. When used together, these factors result in increased income and decreased costs associated with customer acquisition and retention.
Options for advanced login
In the realm of CIAM, a company may get a competitive advantage by introducing innovative and cutting-edge sign-in choices that are not yet utilized by most businesses. These login techniques, such as passwordless, one-touch login, and smart login, either improve the overall customer experience or the level of trust that customers have in the company.
Evaluating a Modern CIAM
There may be several reasons why you are considering evaluating a Modern CIAM solution. You may be experiencing some of the pain points mentioned in this post, or you could be investigating a CIAM solution to tackle a pressing issue, but what you should be doing instead is making plans for where you want to be in the next five years. If you don't, you run the risk of not being able to get there without enduring a great deal of suffering. The following is a list of simple questions that you need to ask each vendor to properly evaluate their CIAM solutions:
- How can your system be scaled in a reliable manner such that it can manage enormous numbers of users? What is your history of server availability?
- Could you please provide me with your SOC2 Type II compliance report so that I may better understand how you protect consumer information? Are privacy rules such as GDPR and CCPA being followed by your organization?
- What kind of flexibility does your offering have? Can I have complete control over the user experience by accessing a direct API in my integration?
- If I chose you as my vendor, would I be locked into a contract? If I make the decision to move systems, how will I export my users?
- Should I expect any additional costs, such as those associated with multi-factor authentication, if I decide to gradually raise the number of authentication methods I use?
Should you buy or adapt your existing solution?
If you already have a CIAM solution, here are some questions to ask yourself to determine whether it is still the best option for your company:
Ease of use: Is your current platform simple to use for all parties involved, including software engineers, system administrators, and end users?
Automation: Is your current platform highly automated or does it require manual and time-consuming processes to deliver services?
Security: Does the platform have a high level of security to safeguard the information of your customers? For example, does it have a SOC 2 Type II report that details the controls to ensure the safety of both you and your customers?
KPIs Statistics: With any solution, having the appropriate KPIs is crucial, and hopefully, you have an existing KPI dashboard that reveals some trends related to your current environment. With your existing solution, do those trends show a positive or negative correlation?
Integration: Does the platform have the ability to easily interface with your current infrastructure as well as with the environments you envision in your future state?
Support: Does your current vendor or in-house system have the ability to supply first-rate assistance to customers in the event that they have any difficulties?
Scalable: Scalability is quite important, as the system needs to be able to accommodate a very high number of users. Considering that your CIAM supplier guards the entrance to your program, you will want to make certain that the service has an uptime that is superior to that of its competitors.
Flexibility: Does your CIAM platform allow customers to manage consent and marketing material? Giving customers the flexibility of choices will for a better end-user experience.
If the answer to any of the questions listed above is no, then it's time to consider a new solution, and KeyData can help you on your journey. Customer Identity Access Management (CIAM) is one of KeyData's most important services. We know how to help organizations evaluate and select the appropriate CIAM solution to help scale their business. Our people and our knowledge are what gives us an edge at KeyData. Our team is made up of highly skilled engineers and consultants who focus on CIAM evaluation and implementation, Privileged Access Management, and Cloud Security Posture Management. Our team has a strong track record of providing end-to-end CIAM services, from gathering requirements and making roadmaps to full implementation, training, and managed support. Don't hesitate to get in touch with us right away for a free initial consultation.
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