Growth in consumer demands for personalization, omni-channel experiences and data transparency caused leading brands to reevaluate the way they collect, store and apply customer identity data in 2014.
As 2015 draws near, we’ve taken stock of growing trends, examined industry forecasts and consulted our crystal ball to compile a list of ten consumer identity-related predictions poised to impact businesses over the course of the next year.
Last week, we shared our sixth and seventh predictions for 2015. Now, let’s take a look at the final 3 predictions on our list.
Prediction #8: “Identity 3.0” Will Take Hold
In the late 1990s, Microsoft Passport helped introduce the concept of third-party identity across the web by enabling consumers to login to various sites using a single username and password. Facebook Connect and other social identity providers ushered in the second generation of web identity, allowing users to login with existing social media identities while providing brands with the information needed to personalize user experiences.
Yet as consumers’ real identities become increasingly intertwined with their virtual lives, we can expect Identity 3.0 to come to full fruition in 2015.
Identity 3.0 goes beyond social identities to include next-generation authentication methods, increased security and new applications of identity. 2014 saw the onset of Identity 3.0 as more consumers leveraged payment providers like PayPal to verify their identities and streamline checkout across eCommerce properties. The introduction of Twitter Digits, which allows users to authenticate using their phone numbers, and ApplePay’s Touch ID, which uses biometrics to identify shoppers at the POS, also marked the beginning stages of Identity 3.0.
Prediction #9: Consumers Will Demand Control Over Their Identity Data
As consumers share more personal information across the web, they are becoming increasingly wary of how businesses are collecting and using their data.
A recent Gigya survey found that while over 80% of consumers have abandoned online registration because they didn’t like the amount and/or type of information being requested, 45% are willing to share that information if the brand makes it clear how it will be used.
Businesses must put transparency at the forefront of their data practices in 2015 and proactively address these privacy concerns by letting customers know upfront what data they want to collect, explaining how it will be used and allowing them to easily opt in and out.
Prediction #10: Identity Will Become Central to the Internet of Things
The number of connected devices is expected to grow to more than 25 billion by 2020, and as consumers continue to build their arsenal of smart gadgets in 2015, they will look to brands to enhance connectivity and improve user experiences.
The wristband that measures users’ activity levels will soon be a commodity. But the one that evaluates their heart rates and adjusts the speed of their treadmills based on their fitness profiles is golden.
Central identity between devices will take the Internet of Things to a whole new level, enabling them to communicate with one another and create a personalized lifestyle for consumers.
Click here to download all ten of our consumer identity predictions for 2015.
By Tobias Meyer-Grunow