Online identification technology has drastically improved this year and will become even more important in the future. The main reason for online identification’s importance is not (only) reducing the growing threat of cybercrime. Identification also plays a key role in the customer experience. But, how do you collect the information you need whilst providing them with both the service and privacy they expect in 2018?
Before we look at the future of online identification, let’s take a look at the future of online shopping as this is one of the major triggers to improve online authentication. According to research in the Netherlands, in 2017 just under 25 % of customers’ total spending was done online. By 2022, this number is expected to grow to 35 %. Consumers between the ages 15 to 34 years even said to expect a far higher number.
With all these online transactions, knowing exactly who you’re doing business with, is highly important. This information will provide you with key insights to improve the customer experience as well as your turn-over or revenue. If you want to show relevant offers, provide available payment methods and improve fraud protection, this customer data is key.
Still, logging in should be as easy as possible, with as little questions as possible. How else can you make sure consumers don’t abandon their digital shopping cart because it is too complicated to finish the process? And that’s not the only challenge. For how can you make consumers choose your company for their online shopping when privacy is such an important argument? This means your online identification should be user friendly and thorough at the same time.
Customer experience and online security are not the only reasons companies need to get on board with the latest online identity trends. As mentioned earlier, knowing exactly who you’re doing business with, will help you grow revenue with minimum effort. But in spite of the growing popularity of online shopping, consumers are still reluctant to share personal information online. 1 out of 10 consumers even use a fake identity because of privacy concerns.
An important change in your online identification process for improving usability, security and information disclosure all at the same time, is removing extensive forms from your process. Even if your customer instantly knows everything he needs to fill in (like which username and password he used for your site), there might be information he doesn’t want to share. So, registration should be easy for the user and insightful for you.
More and more solutions for user friendly online identification are developed across Europe. Estonia pioneered with EID, in the Nordics they use BankID and in Belgium, Itsme has recently been introduced. A highly reliable and user friendly identification method in the Netherlands is iDIN. iDIN is an identification process created by the Dutch banks. By integrating iDIN in your registration and login process, forms become redundant. iDIN lets your customer [with a Dutch bank account] login the same way he would going to his online banking environment. Using the same credentials and security of the online banking environment, makes logging in easy and secure.
Of course, when using any of such identification methods, you will still need to ask the customer for permission to withdraw some information, for example address, gender, phone number, email address or date of birth. But by offering identification through secure and user friendly solutions, information disclosure will be easier for the consumer than entering all kind of answers without knowing why. Chances are, these answers will not be fully truthful. Rewarding the customer for sharing some of the data with you, may further increase the user friendliness and trustworthiness of your website.
Because CM acts as a Digital Identity Service Provider, through our platform you can easily integrate any identification solution. If you want to know more about our identity solutions, please visit our overview page or contact our identity specialist Thea van Oosterhout for more information.
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