Establishing Identity Trust is the Future of eCommerce, According to IDC
Customer expectations are changing — and in eCommerce today, shoppers do not have a tolerance for unnecessary friction. Creating a smooth and positive customer experience is a critical differentiator in digital commerce, and it should be a key focus for companies developing new channels, partnerships, and offerings. According to a recent IDC Vendor Spotlight*, digital identity trust is the foundation upon which personalized experiences can be developed and delivered securely.
Digital identity trust can be established through an effective data network which determines the level of confidence of the identity behind any given interaction in real time, at any point in the customer journey. IDC analyst Steven D’Alfonso explains that an ideal identity network will include access to expansive data, aggregation and coordination of fraud signals, and the ability to determine good users from bad users based on levels of trust. This means that businesses can protect themselves from fraud while delivering optimal experiences for their good customers.
New IDC Vendor Spotlight Highlights Identity Trust for Personalized Experiences
In the Spotlight, D’Alfonso showcases Kount’s unique ability to establish trust in real-time through the Identity Trust Global Network and adaptive artificial intelligence, therefore overcoming the challenges both legacy providers and start-ups face in establishing digital identity trust.
Kount’s Identity Trust Global Network is the largest network of trust and fraud signals that spans 32 billion annual interactions globally. According to the paper, the breadth and depth of Kount’s data, including relationships with more than 50 payment service providers, gateways, and partners, remains key in maintaining competitive advantage for eCommerce companies. Kount’s robust data network and advanced AI allows for quick and accurate risk decisions.
Key Takeaways from the Report:
- Cross industry identity element data and fraud signals are required for an effective identity trust network
- Identity networks must link identity element data and fraud signals in real time to match the speed of real time payments
According to D’Alfonso, “Identity trust combined with AI-based fraud protection can enable fraud, product, and marketing teams to elicit deeper customer insights around customer behavior.”
In addition to deep customer insights and reduced fraud risk, identity trust enables payment service providers, gateways, and eCommerce companies to decrease manual review rates, improve operational efficiencies, and reduce false positives, which allows them to develop and deliver personalized user experiences.
“The Identity Trust Global Network provides eCommerce companies with maximum control over their users’ experiences, creating unique “VIP” experiences to introducing variable amounts of friction during authentication or blocking transactions for fraud,” writes D’Alfonso. “Creating a dynamic personalized [customer experience], digital commerce companies can drive higher revenue through increased sales conversion rates, better customer retention, and improved brand reputation and loyalty.”
Kount’s Identity Trust Global Network Delivers Essential Customer Insight
“Many of the world’s largest companies and brands rely on Kount’s digital identity and fraud prevention platform on a daily basis to stop fraud, reduce chargebacks and friction, and improve sales and customer experience,” said Brad Wiskirchen, CEO at Kount. “Kount is innovating each day, and continues to provide unprecedented depth in our Identity Trust Global Network”
With increasing digital innovation and the modernization of payments, fraud management can no longer be considered a separate risk function. As D’Alfonso writes, “The future of fraud prevention is establishing identity trust to deliver personalized user experiences and preventing fraud in real time.”
Companies must understand who they are doing business with through the customer journey, which Kount’s Identity Trust Global Network enables businesses to successfully accomplish.
*IDC Vendor Spotlight, Sponsored by Kount, Establishing Identity Trust in eCommerce to Personalize Customer Experience and Reduce Friction, June 2020