How Businesses are Experiencing Digital Transformation with Consumer IAM

Whether you want to improve consumer interaction through new digital channels or optimize your business operations, a digital transformation strategy is becoming increasingly important. Meanwhile, to defend your reputation and financial stability, you must safeguard data privacy and security.

Consumer Identity and Access Management (CIAM), also known as B2C IAM assists you in laying the groundwork for a business to deliver exceptional client experiences while striking the perfect balance between ease and security. All this within IT infrastructure makes sure that the appropriate people have access to the appropriate resources at the right time for the right cause.

Digital Transformation in a Business: A Necessary Disruption

Digital transformation means using new technologies to manage or adjust the current business processes, culture, and consumer experiences in response to the employee or consumer expectations. The way you do business will change because of consumer IAM.

The workforce is being transformed by remote employees who use collaborative tools. The way you collect data from across the enterprise is changing thanks to the Internet of Things (IoT) devices. Consumers, on the other hand, desire to interact with your company through mobile applications. Your entire business model will begin to evolve if you choose to embrace digital transformation to enhance revenue or reduce operational costs.

Structuring a Digital Transformation Plan

Everyone wins with a digital transformation strategy. A strategy helps organizations embrace new business models that allow them to provide staff with better digital technology. Therefore, your transformation strategy should include:

• Digitally savvy management: Business leaders must grasp how technology aids the firm and what resources are most critical for revenue growth.
• Risk Analysis: Business and IT leaders must develop a risk management strategy for reducing financial, operational, and reputational risks.
• Flexibility: Decision-makers must be willing to modify their business practices because new technologies will necessitate the acquisition of new skills and the adoption of new procedures.
• Key Performance Indicators: The strategy should include a method for assessing the impact of new technology on business outcomes.

Many firms struggle to develop cyber-secure digital transformation strategies because each new technology introduces a new risk, making risk management difficult.

5 Reasons Why Businesses are Leveraging Consumer IAM

Consumer access entails more than simply granting authority to use internet services. Mobile, IoT, partner applications, and a variety of other channels have all been added to the mix. Businesses can use consumer IAM to provide quick, easy, unified, and secure access across all digital channels.

A consumer IAM platform, LoginRadius for example, also enables you to use consumer identification data to understand your consumers and personalize your products, services, and individual consumer interactions with them.

Given below are the top 5 consumer IAM benefits of LoginRadius.

1. Low-friction authentication

The experience starts with a compelling registration process that can be completed on many devices, establishing cross-channel log-in and authentication credentials. Multiple log-ins for numerous channels and devices cause friction, which leads to consumer annoyance and maybe missed purchases.

Social login via platforms like Google or Facebook might alleviate registration fatigue, but it can also pose security problems which may necessitate the use of multi-factor authentication. With highly low-friction authentication, the consumer enjoys compelling and consistent interaction across channels.

2. Single consumer view

Consumer data is collected by businesses, but it is often segregated among repositories and departments. The consumer IAM platform provides you with a wealth of information on your consumers’ identities and habits. It allows the building of a detailed profile of each consumer, including personal information, purchase histories, and usage and purchasing patterns.

All of this data may be combined into a single consumer view, which may then be pushed into other enterprise programs to improve areas like sales forecasting, tailored marketing, and new product development.

APIs are widely used in the latest generation of consumer IAM platforms to link identity data and analytics into complementary systems like content management, ERP, and consumer experience Management.

Read more: Why Organizations Must Use API-Driven CIAM for Digital Agility

3. Extended security

Authentication has been a simple decision based on the credentials supplied up until now. This was frequently accomplished by using a user name and password that were both extremely weak. Although the invention of two-factor authentication (2FA) employing a second step such as an SMS message has helped, it is still vulnerable to hacking.

Multi-factor authentication (MFA), which can include biometrics, geolocation, and user behavior, provides increased security. These features also enable the use of analytics to give additional capabilities like anomaly detection, which may be used to swiftly identify and address unexpected behavior. To develop a comprehensive end-to-end solution, the CIAM platform must also provide security beyond the client, including employees, partners, applications, and IoT devices.

4. Privacy and regulatory compliance

Data privacy is a critical component of any CIAM solution, especially when the consumer is responsible for their data and profile management. The consumer IAM platform must provide your consumers with visibility and control over how and where their data is shared. So it includes both consent and preference management, which allows your consumers to choose how their data is collected and used.

Consent management, for example, must allow your client to establish multi-level consent – where data can be used for one reason but not for another – that can be turned on and off at any moment, according to GDPR requirements. The CIAM platform necessitates significant self-service features so that your consumers may manage their consents and preferences through their profile, as well as robust tracking and auditing so that you can prove compliance.

5. Hybrid CIAM deployment

Many CIAM platforms are cloud-based because they provide the scalability and performance required to manage millions of client contacts. However, many of the enterprise systems with which your platform must integrate will remain on-premises. As a result, a hybrid IAM design must integrate cloud and mobile components smoothly.

Consumer IAM has swiftly established itself as a critical component of a positive consumer experience. It lowers the danger of data breaches while also removing a lot of the friction from client interactions. Your consumer isn't the only one who benefits. The identification data you have at your fingertips aids in providing a convenient, omnichannel, and personalized experience, which in turn increases revenue and loyalty.

Contact us to find out how LoginRadius is leading the digital transformation movement for businesses.

If you’re interested in learning more about how the LoginRadius platform works, schedule a demo today.