We are at an inflection point – the digital economy has added complexity and cost to the process of delivering exceptional customer experiences (CX), while at the same time, technology innovations have raised customer expectations regarding how that experience should unfold.

The challenge of providing high quality CX is complicated by policies, processes and regulatory requirements aimed at addressing the pervasive data security breaches that seemingly occur monthly. And, while companies are rapidly improving tools and processes, they continue to lag in the methods they use to validate the identities of their customers when they engage. Methods to access customer-facing systems and to interact with customer service representatives are frequently not secure; they are costly, and they deliver a frustrating customer experience. Yet, according to a recent study by Visa, 86% of consumers are interested in using advanced technologies to verify their identities.

Billions of dollars are lost due to cybercrime and online fraud, but the potentially larger problem is customer frustration, which can lead to an erosion of customer trust. Consumers are frequently the losers as companies ratchet up their security policies and processes and typically force customers to spend excessive time confirming who they are before they can address the issues that they contacted the company about in the first place. This is an area that requires fresh thought and innovative solutions to improve the CX.

Conveniently, with the deluge of publicized security breaches compromising consumer privacy, consumer attitudes and practices are changing. Two-thirds of consumers prioritize security over convenience when setting up passwords, and nearly half of consumers indicate that they would use two-factor authentication if available. These shifting attitudes will likely reduce the resistance to new technologies that can improve both the CX and Security simultaneously.

Read about the path to modern identity management in our white paper, “Modern Identity Management Promises to Improve BOTH Security and Customer Experiences.”