September 20, 2018
Digital Identity: How to Deliver Trusted eCommerce in Just One Click
Posted November 14, 2017
How did a small company that started as a new type of online bookstore become one of the biggest success stories in eCommerce?
Amazon’s approach focused on the logistics of distribution as central to the online retail experience, then supercharged that experience with its 1-Click service.
Patented in the United States in 1999, this easy checkout process helped generate insane growth for Amazon and created incredible customer loyalty. However, Amazon’s patent recently expired, giving other businesses an opportunity to capitalize on the benefits of this customer-centric process.
As eCommerce organizations of all shapes and sizes now look to leverage this technology, how can they implement it securely?
Built by Trust
1-Click quickly became the gold standard for how to treat returning customers.
By storing validated customer credentials, shoppers were able to bypass traditional checkout, which is the biggest point of friction for online retailers. Customers no longer had to re-enter credit card and other personal information, such as shipping address, each time they made a purchase.
It also became a shining example of the power of trust in the digital economy.
However, for many digital businesses today, this trust is missing. Companies are demanding more information before allowing customers to proceed, often requiring customers to answer security questions or enter special authentication codes sent to their phones just to prove who they are.
Instead of a seamless, satisfying journey, customers suffer through a clumsy experience. Frustration grows among loyal customers, resulting in increased cart abandonment, customer defections, and damage to your brand.
Even in the face of ongoing cyberthreats, digital businesses must find that balance between trust and security to leverage the huge opportunity created by the opening up of the 1-Click experience.
The Information Age
The trust element, which is central to such a seamless shopping experience, can be built by understanding the full context of a transaction and the true digital identity of the customer.
Data-led insights into a user’s normal activity and all other associated information – email address, device credentials, location, sites visited, shipping details, and thousands of other dynamic attributes make up a user’s digital DNA.
Add in machine learning and deep data analytics, and relationships between seemingly disparate pieces of information can been identified. These connections can better authenticate the true identity of a user, as well as identify anomalies in customer behavior that could indicate fraud.
With 1-Click and other similar experiences, less information is being provided by the user at the time of the transaction, so it is all the more important that companies adopting these platforms are working behind the scenes to truly understand the individual on the other end of a transaction.
Each and Every Step
The success of Amazon’s 1-Click service showed that today’s digital customers are drawn to a quick and easy shopping experience. The better the experience along their digital journey, the more loyal they will become, returning time and time again.
But, 1-Click and other such services are used at only one point of the customer journey – checkout. Can businesses apply the philosophy behind 1-Click to the entire experience?
This would be predicated on removing friction at every step along the customer journey. But, that has become ever more difficult in the wake of massive data breaches. Cybercriminals can use stolen or compromised personally identifiable information to login and shop while appearing to be legitimate customers.
Adding obtrusive authentication steps to the customer journey in an attempt to get a handle on fraud isn’t the answer. Businesses need fraud control that is completely transparent to the user and doesn’t impact their experience – be it the first time they hit your website or app to open a new account, login to a current account or make a payment.
Dynamic data around each digital identity provides full context for each and every trust decision – even if that customer returns using a different device. Whether it’s a customer doing some shopping, an employee or business partner looking for critical information, or some other digital visitor, trusted users are allowed to freely transact without the need for any addition authentication or added friction.
Fraudsters are also instantly recognized and stopped before they can wreak havoc on your business.
That’s the power of data, and trust, in the digital economy.