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Customer trust in the digital economy

Customer trust in the digital economy

KPMG's* revealing new report - Consumer Loss Barometer-The economics of trust - provides timely insights that in my view should be required reading for business leaders in every sector.

Trust in the 'age of the customer' has become a key differentiator for smart businesses that can demonstrate a deep understanding of consumer relationships. These businesses understand that putting the customer at the heart of the business is critical to growth in today's data-focused era.

The report reveals a gap in perceptions between today's increasingly security-conscious consumers and organizations that still mistakenly view cyber security as an IT issue rather than a critical business issue. And closing this gap to meet consumer security concerns will be crucial for businesses hoping to generate the levels of consumer trust and loyalty that propel sustained growth in the digital economy.

Smart firms are elevating their cyber security approach

Our Customer Identity and Access Management (CIAM) solutions are helping businesses manage the immense challenge of better analyzing - and responding to - customer data and the issues that impact service and customer satisfaction. The better you know your customer, the better your ability to deliver what they expect within a trusted and secure ecosystem. Smart organizations that `get it' are elevating their approach to digital identity management beyond a traditional security focus and transforming the way they deliver value to customers.

In our engagements with clients we typically highlight the significance of our Six Pillars of Customer Experience and their critical importance to customer relationships: Personalization, Integrity, Expectations, Resolution, Empathy, Time and Effort. In the quest to unlock the impact of these Six Pillars, CIAM solutions can play a crucial role thanks to their proven ability to take customer relationships - and business growth - to new levels. CIAM solutions help organizations identify a customer across the business relationship life cycle, enabling a consistently seamless, personalized, secure customer experience.

We worked recently with a global IT leader whose customer experience delivery, and identity and access management, were impeding business expansion. Our KPMG team in the US developed a strategy to deliver a unified new customer experience driven by a complete customer CIAM system. The CIAM platform we deployed for a global customer base numbering in the tens of millions enabled customers to add new devices, install new apps and access new services - all within an ecosystem of security, privacy and global regulatory compliance. Key to our success was an approach that focused on the challenge as an overarching business issue, rather than simply an IT or security-centered project.

View CIAM as a business-growth enabler

This case is an excellent example of what we can do using CIAM as a business-growth enabler - improving decision-making, generating deeper customer insights and advancing the customer experience.

My message to today's Chief Information Security Officers (CISOs) and security executives? You are now a key player in the business and no longer just a technology control. You have a significant role to play in building and protecting brand loyalty and trust - and in driving growth as new players and business models continue to disrupt entire sectors. Cyber security cannot be an afterthought - it needs to be part of every business decision moving forward.

It's time to get consumers and businesses on the same page

The survey identified, for example, a mismatch between the priorities of security executives and consumers. For example, 73 percent of mobile consumers cited concerns about Wi-Fi being compromised and 78 percent cited concerns about Apps being compromised. Fully 75 percent cited concerns about theft or misuse of personal information such as their location or health-related data, while 35 percent said they expect a company to prove it has fixed a security issue.

Meanwhile, only 8 percent of security executives said they would prioritize such proof. And fewer than a third of security executives surveyed cited any concerns about the impact of a breach on customer relationships. Fewer than two-thirds - 64 percent - said their cyber-security budgets are adequate.

Organizations are not doing enough to demonstrate or enhance security around digital products and services - even amid heightened consumer awareness of today's cyber threats. The risk they run is undermining consumer trust and brand loyalty toward their business - which can prove very costly for future competitiveness and growth.

CIAM capabilities have become a key to closing this gap. Forward-looking businesses are turning their focus in this direction to secure and optimize the customer experience - ultimately enhancing customer trust, brand loyalty and growth prospects.

*Throughout this blog, “we”, “KPMG”, “us” and “our” refer to the network of independent member firms operating under the KPMG name and affiliated with KPMG International or to one or more of these firms or to KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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