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Beyond authentication: The new era of customer identity as a differentiator

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By Omindu Rathnaweera – Head of Product Management and Architecture IAM at WSO2

The creation of personalised experiences, however, becomes challenging due to isolated customer data, rigid access systems, and the phasing out of third-party cookies. As businesses lose traditional tools for tracking and targeting, this calls for a smarter, identity-centric approach that transforms the customer experience by unifying identities, context, and behavioral cues. In such a scenario, the implementation of Customer Identity and Access Management (CIAM) solutions serves as a game-changer. Beyond login systems and user databases, CIAM is rapidly emerging as a key business differentiator—providing a competitive edge at a time when identity can be considered the new digital currency, and consent-based, first-party data is more crucial than ever.

Beyond identity: The role of CIAM and the digital double in personalisation

Traditionally, identity systems involved user verification through factors including their name, email, password, etc. However, customers of today seek more than recognition; they expect relevance in their digital experience. This is where CIAM comes to the rescue by blending a customer’s identity attributes with behavioral insights along with contextual signals. In simple terms, CIAM unlocks personalisation by combining data on who the user is, along with data on their behavioral patterns (for e.g. their preference towards a particular style of clothing while shopping online), and when, where, and what they need. This serves as the basic idea behind a concept that is referred to as a “digital double”, which is a continuously evolving version of a user’s identity and personality in the digital world. Apart from fixed parameters including their fingerprints, blood group, name, and gender, it also includes rapidly changing attributes such as location, age, job, and preferences. This way, CIAM evolves beyond just secure access to becoming a key enabler of customer intimacy across apps, platforms, and services.

Through APIs and event syncs, CIAM systems gather this data based on user activities from various sources. Through this information, a rich digital profile of each user can be created, which can then be accessed by apps. Aided by AI and ML, businesses can analyse these insights to customise and upgrade their experiences in real time.

At an advanced level, CIAM systems can create a seamless blend of authentication, authorisation, context-awareness, AI-driven insights, and sync with omnichannel platforms. This can ensure that businesses do not restrict themselves merely identifying their customers but evolve to understand them. And it is such an understanding that serves as the driving force behind features such as personalised content, predictive services, detecting anomalies and prevention of fraud.

Personal, not prying: Creating trusted boundaries that respect privacy

While initiatives like the digital double create tailored and sophisticated experiences for users, it also comes with several questions surrounding data privacy. Without exercising caution, the same experiences can feel invasive, or worse, create a breach of trust. This makes it imperative for companies to ensure that their CIAM strategies are transparent and consent-driven at their core, keeping user control and ethical use of data at their center.

With creating digital doubles inside digital applications, the key factors to be applied are privacy, trust, confidentiality, and security controls, which can improve security through the creation of a privacy ecosystem where the double is safeguarded against any cyber threats. This includes systems that support privacy-by-design, with features like opt-in permissions, and user dashboards that enable the user to control what they share. It is also crucial for companies to ensure compliance with the regulations set around data privacy.

To build long-term trust and to create lasting relationships based on transparency and respect, it is important for brands to adopt privacy-first personalisation strategies to remain compliant while delivering tailored experiences that their customers expect.

Looking ahead: Towards an identity-led future

Building personal connections with users has found itself a position at the very core of today’s experience-driven economy. In the digital world, CIAM is the key method of initiating these personalised experiences. In such a scenario, identity is no longer restricted to being a backend feature, evolving to dynamic and user-owned feature that is set to lead the market. Given that the digital double is a fusion of each user’s identity as well as their personality, CIAM leads the way towards personalisation, creating a steady and seamless experience. While compliance towards privacy regulations and maintaining transparency in the path towards personalisation cannot be stressed enough, in today’s digital world, getting personal isn’t a privacy risk, but an opportunity to build customer loyalty, when done right.

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