Risk-based digital identity benefits CIOs, CMOs and customers

First, business and IT leaders should consider the notion that customer identity isn’t just about security. Instead, they might think of it as a resource that can be applied flexibly across platforms and tailored to marketing motions and individual preferences while making it less obvious for customers. Marketing and IT leaders can help Context-dependence. Businesses using a flexible approach might, for example, require multiple means of authentication for financial transactions but a lower level of verification for interactions like updating a newsletter subscription. This type of risk-based authentication (RBA) has the potential benefit of both better CX and reduced complexity for the organization.

Transparency. Instead of sticking out as a separate, onerous activity, RBA can be made an integral part of the online experiences customers already engage in, like researching, buying, servicing or registering. Getting rid of CAPTCHAs or remembering a favorite teacher’s name at each step of the customer journey is only part of the shift; in this vision, the initial setup of customers’ identity profiles is more comprehensive and expands beyond just a few obvious tests so that fewer — if any — visible authentication steps are required once a customer becomes engaged.

One example of a front-loaded, unobtrusive means of authentication is biometrics. Fingerprints, facial images and voice patterns all can be captured up front on a customer’s smartphone and used for simple verification when necessary. Businesses are also increasingly deploying invisible, behavior-based authentications. These use background factors, like customers’ device, location, browser or typical use patterns, to confirm who they are. If one of those data points stands out — say, a known American shopper logs in from a foreign IP address — then an additional authentication method is required.

Customizability. The digital age has trained us to expect choice; one customer may like authenticating via a secure password manager, while another may prefer biometric recognition. Combine this ability to choose with an identity-fueled relationship management system that can apply these preferences across time and platforms, and the result can be an experience that encourages customers to engage with a brand more often — and more willingly.

Ubiquity. Any customer-friendly digital identity system must work consistently across marketing, commerce and mobile platforms so that customers don’t have to deal with different authentication requirements for different parts of the business. By working together to ensure this is the case, marketing, IT and other leaders can help deliver unified and secure CX that starts building brand loyalty and trust.