FINAL WORD
This was the case at Tesco where customer identities had become siloed across products and services , adding friction to the customer experience . At the same time , the bank needed to prepare for compliance with the revised Payment Services Directive ( PSD2 ), a European electronic services regulation requiring strong customer authentication , as well as address an inflexible security posture that was adding cost and time to the launch of new applications and features .
Like many in a similar position , Tesco Bank has successfully completed a major project to transition to a common identity provider across banking , credit cards and general insurance . This now allows the bank to use unified customer identity and enable innovations such as Multi- Factor Authentication ( MFA ) which strengthen security through additional identifiers such as secure smartphone apps that can be backed up with biometrics like fingerprint swipes from a modern smartphone .
Although promoted in part by PSD2 compliance , the result is better customer experience that also helps it gain customer insights . At an operational level , the solution has also removed a major security burden from developers so they can deliver self-service features and new services much faster and more cost effectively .
Digital first
This need to work more seamlessly with customers digital identities while maintaining security and opt-in privacy controls is one of the major trends that retailers are increasingly faced with as online engagement grows . Even as vaccinations ramp up , certain trends look set to continue . Waitrose , another UK retailer , recently surveyed 2,000 people across the UK and found that 77 % now do at least some of their grocery shopping online , compared with 61 % the year before .
The survey found that the biggest shift towards online supermarket shopping was in the over-55 age group , where regular online shopping nearly trebled . As shoppers start to get used to the convenience of services such as ‘ click and collect ’ and ‘ appointment shopping ’ it seems unlikely that going back to normal will be an option .
These digital interactions are also generating huge volumes of potentially valuable data that can be used by pioneers to build innovative new experiences that not only match the brand perception , but also engage with net-new customers . Identity is a crucial part of this process moving forward and must span the entire customer journey from initial registration , through authentication and self-service activities while supporting the privacy that customers expect .
The final takeaway for retailers is that the pandemic has prompted a big shake up in brand loyalty . According to a survey conducted by McKinsey & Company just before Christmas 2020 , 61 % of shoppers have tried new shopping behaviour during the pandemic including switching brands and using new digital channels . The survey also found that over 80 % plan to continue these new approaches even after the pandemic is over . With such disruption in the market , trying out new digital innovation for size now will help build captivating online retail experience that will pay dividends well into the future . x
68 www . intelligentcxo . com