Gone are the days when customers were loyal to one brand. Since they have many options, they can switch to your competitor any time if you don’t provide them with an exceptional user experience. Many businesses don’t realize, but customers are concerned about their data security, and the data protection counts for user-experience. So if you want to improve your customer relationship and ensure your customers feel confident throughout their buying journey, implement a robust identity verification solution.
Many businesses overlook it, but data security is directly associated with user experience. Good user experience is an essential aspect of a business’s success. No matter what online business you’re into until your customers don’t feel confident that you’re capable of handling their digital identity or data, they won’t buy your services or products. This post will discuss the role of “user experience” in a business’s success and how identity verification plays a vital role in improving user experience. So without further delay, let’s get started.
Why “User Experience” is Important for Building Customer Relationship
In today’s competitive era, customers have numberless options to choose from. If your service is not up to the mark, they can jump immediately to your competitor to get better user experience. So if you want to retain your customers, you must pay attention to your customers’ data security.
When it comes to making a purchase, 64% of people find customer experience more important than price. Another report reveals that companies lose $62 billion every year due to poor customer service.
It simply explains that providing a good user experience is no longer an added service but a necessity.
Role of Digital Identity in Improving User Experience
There are plenty of things that contribute to a good user experience. From optimizing a website to improving customer service to making the buying process better, everything plays a vital role in improving overall user experience. However, one crucial thing that is equally important is data security. The majority of startups and small businesses don’t pay adequate attention to the safety of their customers’ digital identity, resulting in data breaches.
According to a report published in Forbes, there have been 300 data breaches over the past ten years in the United States, involving the theft of 100,000 or more records.
In an article, Security Magazine reported that consumers are abandoning brands after data breaches. The article further mentions that around 78% of customers stop engaging with brands that experience data breaches.
Digital identity is essential to make your customers realize that you’re committed to their data security. When you invest in a robust identity verification solution, you minimize the risk of money laundering, financial scams, and identity theft and make the onboarding journey smooth.
Let’s take a look at the different stages of digital identity and how it benefits business.
Different Stages of Customer Identity Verification
Since almost every business operation is performed digitally nowadays, the risks of identity fraud have increased in every step of a customer’s journey. Today, we can’t limit identity verification to the time of onboarding only.
As a result, we at iDenfy provide real-time identity verification solutions that help businesses cover all the customer identity stages and improve user experience.
Let’s get to know these stages in detail.
Customer onboarding describes the process of how a customer goes through when they begin their journey as a customer of a product or service.
In 2018, over $24.2 billion was lost worldwide due to payment card fraud. The number is frightening, and the worst is yet to come. According to forecasts, card fraud will accumulate another $10 billion in losses in just 3 years.
So you can realize how important smooth onboarding is in today’s scenario. As iDenfy, we combine face recognition, liveness detection, and ID verification, it can run various checks to identify whether the user is legit or not. We employ AI-enabled OCR technology that makes the verification process quick and frictionally. It reduces the requirement of human interaction to a great extent and ensures seamless onboarding for customers.
As per the law, online businesses need to employ KYC (Know Your Customer) to better understand their customers. Generally, the KYC process involves verifying government-issued ID cards, face verification, and other relevant verification of a customer’s identity.
We help you meet KYC and AML (Anti Money Laundering) compliance regulations. AI-enabled ID verification solution that includes a face recognition feature can recognize facial biometrics over 160 different points.
We go one step further to help businesses comply with KYC and AML directives. We can check government and Interpol data to ensure the legitimacy of a person. During the verification process, we check for the following databases:
- Sanctions EU, UN, HM Treasury and other sanctions databases,
- Politically exposed person list,
- Financial crime,
- Lost and stolen documents.
Even if you have onboarded a customer, you must make sure that only an authorized person is accessing your service. In the modern time, when cybercriminals are getting technologically advanced, you can’t rely on login and password security only.
Regardless of what business you’re into, customers are the backbone of your business. No matter how good your product or service is, if you’re not able to provide your customer with a good experience, you can’t expect them to visit your online store. As a result, you must provide them with the best user experience throughout their onboarding journey and afterward. Implementing identity verification can be one good step to improve overall user experience.