The Importance of CIAM in Improving Customer Experience

Knowing the customer better has become a key principle in an increasingly connected and digitized business environment. And knowing the customer thoroughly is very important when it comes to offering services and products, as well as offering greater control and security in  how they access these.

Hence, identifying customers, recognizing them, authenticating them, and allowing them access to applications, platforms and systems becomes essential to guarantee the integrity of the data and to ratify the trust they have placed in a company.

In this context, Customer Identity and Access Management (CIAM) emerges as a strategy that encompasses a set of technologies, governance and processes that companies implement to efficiently manage the identity and access of their customers and thereby also improve the user experience.

Specifically, CIAM focuses on managing the elements that make up the identity of customers, such as names, emails, passwords, and other related data, as well as on managing their credentials for the use of systems and applications.

According to Market Growth Reports, CIAM's global market size was valued at US$14.88 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 13.03%, reaching US$31.02 billion by 2028.

Let's explore the relevance of managing customer identity and access and how it can strengthen the security of organizations while improving the customer experience.

Rigorous Identity Management
Cybersecurity is a critical issue for companies in the digital age. The threat of security breaches and the theft of personal data are ongoing problems. CIAM stands as an indispensable tool to address these challenges, offering multiple benefits for your cybersecurity strategy.

In organizations, CIAM allows for more rigorous management of customer identities and access control, significantly reducing the risk of security breaches and fraud, and strengthening the protection of sensitive data.

From a compliance perspective, CIAM has special relevance. There are privacy and data protection regulations, such as the General Data Protection Regulation (GDPR) of the European Union, or the General Law on the Protection of Personal Data Held by Obligated Persons in Mexico, which require responsible handling of customer information. A CIAM system helps comply with these regulations by ensuring that customer data is properly and securely managed. 

One of the biggest deficiencies for organizations is to carry out an agile onboarding process in which there is no need to capture customer information repeatedly. By automating registration and authentication processes through CIAM, it is possible to reduce the workload of support personnel, allowing them to focus on strategic tasks. This not only improves operational efficiency, but also saves costs.

In the same way, with a faster, more effective, and reliable collection of customer data, it is possible to make more decisions at the business level and improve the quality of the products and services offered. One of the premises of CIAM is to collect data on customer behavior and preferences.

And this is where the customer experience can be optimized and elevated. With easier access to online services and applications and effective personalization, the relationship with customers becomes closer, thus generating greater brand loyalty and trust.

Customer-Centric
As customers are the central focus of CIAM, there are multiple benefits it can offer them and enhance the experience they receive, as well as their relationship with organizations.  

• Increased convenience. Customers can access online services more easily and quickly without needing to remember multiple credentials.
• Optimized security. The protection of personal data and access credentials creates an environment of trust and security. Multifactor authentication, the elimination of orphan accounts and having a federated identity repository will help to keep a better record of the activities carried out and who performs them.
• Personalization. Customers enjoy a more personalized experience, strengthening their relationship with the company.
• Privacy under control. CIAM systems allow customers to have more control over their data and how it is used.
• Access to multiple services. CIAM simplifies the customer experience by allowing access with a single identity to a variety of services and applications.

It is vital not to wait for the identity and information of customers to be put at risk, which is why it is important to have the support of senior management to evaluate their advantages and to justify on solid grounds the viability of implementing a CIAM project. An effective execution could attract new customers, increase productivity, and boost business growth.

In addition, we must stop seeing cybersecurity in general as an expense and see it as an investment that will enable the business. We must also be aware that the benefits are not tangible in the short term, and above all, that cybersecurity today is a business enabler and even the strategy itself helps to improve the end-user experience.

Customer Identity and Access Management (CIAM) not only protects data and ensures regulatory compliance, but it also improves customer experience and operational efficiency. Investing in CIAM not only strengthens the security of your organization, but also places it in an advantageous competitive position in the digital world.