5 Ways to Win Customer Trust Using Digital Identity Management

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5 Ways to Win Customer Trust Using Digital
Identity Management
In business, digital identity management
primarily refers to the way a customers
personal information is safely collected, stored,
and accessed. While this may appear simple, many
businesses fall prey to misconceptions about
building or managing a customers digital
identity. To help you leverage customer identity
data, lets discuss the top three misconceptions
that trip businesses up.
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3 Common misconceptions around digital identity

• A digital identity must use highly personal
  identifiable information.
• Many businesses make the mistake of putting
  sensitive personal information like full names
  or social insurance numbers in their system to
  track customer identities. Due to the
  proliferation of data breaches, this is risky.
  Safer methods should be used instead, such as
  coded customer numbers.
• You can only get customer insights from surveys
  or forms.
• Sure, one way of getting consumer insights is
  having them fill out a form on your site.
  Another way is to use a device ID to identify
  customer behavior
• But what about consumers who own multiple
  devices, have separate digital IDs at work and
  home, and access the internet through multiple IP
  addresses or 3rd-party apps? When you gather
  data from multiple sources, youll need to
  compile this and store it in one place. But how?
• With customer identity and access management
  (CIAM) software, you can access an individuals
  extensive data from multiple sources. Even
  anonymous user data can help you create a
  customer identity. You can even gather data
  through progressive profilinga gradual, more
  natural way for customers to share their
  personal information.

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3. Consumer behavior analytics is all you
need. Due to marketings reliance on user
experience mapping, session analytics, and
content engagements, this myth is rampant. As a
result, many businesses mistakenly think
behavioral data is all they need for digital
identity management. Not true. In the next
section, well explain why.
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Why is digital identity management important?
We live in an era where data is the most valuable
commodity in the world. However, where there is
value, there is also risk. For instance Did you
know that 60 of companies fail within 6 months
of a cyber attack? For businesses that collect
or store customer data, security is vital to
winning and maintaining customer trust. If
youre uncertain how, here are 5 methods that
can help.
5 Gold Standards for Winning Customer Trust
1. Collect only whats needed Many businesses
are quick to collect an array of customer data
during the registration process. If you dont
take the time to consider if/why/how youll use
all of this data or determine the right time to
collect this informationyoull run into a lot
of issues.
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Collecting unnecessary data wastes resources and
increases the risk of identity theft. Plus,
gathering too much data also causes customers to
abandon registration, as it slows down the
process and feels intrusive.
2. Invest in data encryption and hashing. When
data is in transit from one server to another,
its at its most vulnerable. Thats why
encryption in transit is crucial to data
protection. Likewise, encryption at rest is
necessary for data governance and compliance
efforts. When it comes to hackers, anything that
has been coded can be decoded. Thus, utilizing
one-way hashing for safeguarding sensitive data
like passwords is a must-do. Safety Tip When
you implement encryption at rest and encryption
in transit, be sure that youre using a platform
with an ISO 27001 certification. This ensures
that your system complies with industry-leading
standards for information security and risk
management.
3. Limit access to data. Not all data is in use
continuously. Thats why sensitive customer data
should not be accessible to everyone, all the
time. Utilizing field-level encryption allows
you to set up access based on an individuals
role. In other words, field-level encryption is
the ability to encrypt
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data within specific data fields, making this
data unreadable to anyone who lacks access or
the keys to decrypt this data.

• Require safer authentication.
• While some tech-savvy users know how to look
  after their personal information, many are
  unaware of how digital identity verification
  impacts security.
• To reduce risk, its important to invest in
  systems that enable a higher level of
  passwordless login. One method, multi-factor
  authentication (MFA), uses an SMS or a call-in
  code, and/or an email link as extra levels of
  security.
• Another method, risk-based authentication (RBA),
  recognizes user patterns and alerts your system
  if this pattern suddenly changes.
• Respect your customers.
• In the past, digital identity management
  practices were not very respectful of customer
  privacy. But soon, customers demanded betterand
  compliance regulations were born.
• Compliance regulations require businesses to
  communicate with customers about why their data
  is collected, by whom, and what will be done with
  it. It also demands customer consent before
  collecting their data.
• Did you know that requesting consent can also
  strengthen your brand reputation and build
  customer trust? Thats why its smart to employ a

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compliance-ready platform now. This will prepare
your business for global data regulations while
also fostering customer loyalty.
Conclusion
Is there one way to achieve all 5 gold
standards? Yeswith CIAM software. LoginRadius
CIAM offers a variety of highly-secure customer
identity management features. For added peace of
mind, LoginRadius keeps its platforms ahead of
emerging data regulations and consistently
performs rigorous updates.