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The Evolution of Consumer Identity:
Five Predictions for 2016
1
The Evolution of Consumer Identity:
Five Predictions for 2016
Thanks to the continued growth of regional privacy regulat...
2
2. Global enterprises will adopt multiple international data
centers to remain compliant.
2014 saw the mandate that all ...
3
Uncertainties regarding the accuracy, completeness and origins of this
data make it nearly impossible for marketers to k...
4
5. The importance of the IDoT will eclipse fascination with the IoT.
Cisco projects that the Internet of Things (IoT) is...
The Trusted Platform for
Identity-Driven Relationships
© 2015 Gigya Incorporated. All rights reserved. | 2513 Charleston R...
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White Paper: ​The Evolution of Consumer Identity - Five Predictions for 2016​

2016 promises to be a year of enhanced development in the customer identity and access management (CIAM) space, with customer experience, data privacy and personalization proving to be increasingly critical components of business success. ​This white paper reveals five identity-related trends we foresee taking hold in the new year, including:
- The death of traditional usernames and passwords
- The decline of data broker revenues
- The convergence of security and customer experience

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White Paper: ​The Evolution of Consumer Identity - Five Predictions for 2016​

  1. 1. The Evolution of Consumer Identity: Five Predictions for 2016
  2. 2. 1 The Evolution of Consumer Identity: Five Predictions for 2016 Thanks to the continued growth of regional privacy regulations, the Internet of Things and biometric authentication, 2015 saw a marked change in the way leading enterprises approached and understood customer identities. 2016 promises to be a year of enhanced development in the customer identity and access management (CIAM) space, with customer experience, data privacy and personalization proving to be increasingly critical components of business success. Let’s take a look at five identity- related trends we foresee taking hold in the new year. 1. Traditional usernames and passwords will begin to die. Consumer patience is all but disappearing as real-time, frictionless access to information, applications and social connections proliferates. Technologies like social authentication and Apple’s Touch ID have have become exceedingly popular in light of the increasing emphasis on convenience. According to a 2015 survey, 88% of US consumers claim to have logged into a website or mobile application using social network login, citing dissatisfaction with spending time filling out registration forms as the number one reason why they choose to log in socially. 2016 is poised for a continuation of this trend, with traditional usernames and passwords slowly moving toward extinction. As advanced means of biometric authentication gain greater adoption and mobile becomes the new norm, consumers will continue to opt for signing in using their existing social (Facebook, Twitter, etc.) and payment (Amazon, PayPal, etc.) credentials or thumbprints over creating and remembering another username and password.
  3. 3. 2 2. Global enterprises will adopt multiple international data centers to remain compliant. 2014 saw the mandate that all Russian citizens’ data must be stored within Russian borders. 2015 saw the invalidation of the EU-US Safe Harbor agreement. And 2016 will see leading enterprises adopt multiple data centers across the globe to adhere to localized data privacy regulations. Additionally, with international enterprises now required to manage their users’ data in multiple geographies and support unique scenarios like users moving from one region to another, on-premises storage of consumer data is becoming increasingly costly and unfeasible. The growing need to comply with new and evolving regional data regulations will also drive businesses’ on-going migration to cloud-based identity and data repositories. 3. Data brokers’ revenues will decline due to brands focusing on first-party data. Data brokers have built a multi-billion dollar industry dedicated to sourcing and selling consumer information from a variety of places, including surveys and questionnaires, public records like voter documentation, enterprise insights from loyalty programs and more. However, modern brands are finding that these third-party consumer profiles are often outdated, limited to device-specific insights and simply inaccurate due to being pieced together from a variety of disparate sources.
  4. 4. 3 Uncertainties regarding the accuracy, completeness and origins of this data make it nearly impossible for marketers to know exactly who they’re reaching and to effectively measure the success of their campaigns, causing more brands to turn to first-party data. Because it is collected directly from customers and takes multi-device activities into account, first-party data is much more reliable than third-party data. In addition to being essentially free to collect, first-party data lowers campaign costs by enabling marketers to target audiences with highly relevant messaging. This minimizes the number of impressions it takes for users to engage and driving conversions at a faster and higher rate. For these key reasons, we predict that 2016 will be the year that data broker revenues begin to decline. 4. Security and customer experience will converge. For marketers to create relevant user experiences, they must be able to identify and connect with customers as they move across today’s landscape of channels and connected devices. However, user tolerance for security barriers like passwords and CAPTCHA is diminishing, causing them to abandon these barriers in search of newer and more convenient experiences. To continue to earn access to customer identities and data, companies must deliver the frictionless registration and engagement processes that users expect. This is a new concept for IT leaders accustomed to focusing on captive employees, who have no choice but to deal with latency and strict authentication protocols when it comes to internal business systems. We believe that, with continued development for biometric forms of authentication and API-focused security, for example, 2016 will find more leading brands striking a balance between usability and security, adopting the tools needed to maximize frictionless user experiences while minimizing risk.
  5. 5. 4 5. The importance of the IDoT will eclipse fascination with the IoT. Cisco projects that the Internet of Things (IoT) is a $14 trillion revenue opportunity, making smart, connected products—and the technologies that make them tick— drivers of huge new growth opportunities. However, according to Gartner, Inc1 , “Managing identities and access is critical to the success of the Internet of Things,” making the Identity of Things, or IDoT, the new focus of the IoT. The IDoT is based on the principle that all entities in the IoT ecosystem— including people, apps, services and connected things—have identities comprised of identifiers and their attributes, and that those identities define relationships between every entity. Managing the data that flows between these identities requires an identity management solution that unifies every entity in the system—a core requirement for businesses looking to capitalize on the IoT in 2016. Learn More To learn how Gigya can help your business navigate the future of customer identity, visit www.gigya.com or call us at 650.353.7230. 1 Gartner, Press Release, February, 2015, http://www.gartner.com/newsroom/id/2985717
  6. 6. The Trusted Platform for Identity-Driven Relationships © 2015 Gigya Incorporated. All rights reserved. | 2513 Charleston Road #200, Mountain View, CA 94043 | T : (650) 353.5592 | www.gigya.com Gigya, the Gigya logo, and Customer Identity Management Platform are either registered trademarks or trademarks of Gigya Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners. Gigya does not own any end user data or maintain any other rights to this data, other than utilizing it to make Gigya’s services available to our clients and their end users. Gigya acts as an agent or back-end vendor of its client’s website or mobile application, to which the end user of our client granted permissions (if applicable). Gigya facilitates the collection, transfer and storage of end user data solely on behalf of its clients and at its clients’ direction. For more information, please see Gigya’s Privacy Policy, available at http://www.gigya.com/privacy-policy/. Gigya-2016-Identity-Predictions-White Paper-201512 About Gigya Gigya’s Customer Identity Management Platform helps companies build better customer relationships by turning unknown visitors into known, loy- al and engaged customers. With Gigya’s technology, businesses increase registrations and identify customers across devices, consolidate data into rich customer profiles, and provide better service, products and experi- ences by integrating data into marketing and service applications. Gigya’s platform was designed from the ground up for social identities, mobile devices, consumer privacy and modern marketing. Gigya provides developers with the APIs they need to easily build and maintain secure and scalable registration, authentication, profile management, data analyt- ics and third-party integrations. More than 700 of the world’s leading businesses such as Fox, Forbes, and Verizon rely on Gigya to build identity-driven relationships and to provide scalable, secure Customer Identity Management. To learn how Gigya can help your business manage customer identities, visit gigya.com, or call us at 650.353.7230.

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