Did you know that phone numbers work as a primary customer identifier for 70%* of Fortune 100 companies?
Phone numbers have gradually phased out traditional identifiers such as national identification numbers and emerged as a new way to identify individuals and small businesses. From mobile banking to virtually all digital native services, phone numbers are now a primary attribute connecting PII data, user profiles, and access devices. However, 50%* of identity records in these companies carry either stale phone numbers or, worse, no phone numbers at all. Inaccurate identity data severely hampers customer service experience for consumer-facing enterprises like banks and digital natives. Enterprises need to not only cleanse their identity verification sources but also keep them continuously updated.
Identity tokenization can enhance digital servicing by improving customer service while ensuring data privacy.
A Microsoft survey states that 72% of customers expect customer service agents to know their contact and product information and service history right from the moment they start engaging with a brand. Here’s why this task becomes a challenge for organizations:
Poor-Quality Identity Data: Customer-related incomplete and stale personal information leads to data quality issues. Customers may provide insufficient information if the onboarding process is unsatisfactory. As phone numbers and addresses may change during the customer lifecycle, organizations must update such changes to prevent stale identity data.
Fragmented Identity Data: Fragmented identity data across umpteen applications and a lack of coherence in architecture and integration between customer touchpoints and identity sources adversely impact customer service.
Stale Data Increases Exposure to Fraud: Data from the FCC shows that over 35 million phone numbers in the US are disconnected and reassigned to a new subscriber every year. Reassigned numbers expose the original owners to a high level of fraud since privacy-sensitive services such as banking and instant messaging are connected to phone numbers.
Poor customer experience, higher operational costs, high risk of fraud, and loss of revenue are the direct consequences of bad customer identity data.
Tokenizing Identity to Beat Customer Service Challenges
Identity tokenization beats challenges arising out of fragmented and poor-quality customer data. It enables a single point of reference to recognize and authenticate customer identities across multiple parts of a customer journey.
Tokenizing identity requires creating a reliable repository of identity tokens that contain the contact information and personal details of customers. Missing or stale contact information and identity data are added or updated, creating a clean database of PII records. An automated process regularly updates the token registry and records changes to personal information, including phone numbers, fetched from multiple verified sources. Customer service applications and service automation tools across business lines in an enterprise can integrate with this registry that houses true identity data.
Here’s how tokenizing identity can benefit organizations:
Improved Customer Experience: A single source of true identity ensures an omnichannel experience for consumers in customer service interactions. Call centers can reduce average handle time and digital banking channels can greenlight more customers. With a higher level of confidence in contact data, organizations can streamline periodic customer communication. Companies can be more confident about their targeted offers reaching the intended audience.
Accelerated Revenue Generation: The accuracy of personal and contact information that a tokenized registry provides can improve cross-selling and upselling to existing customers by accelerating the origination process in digital channels. Delightful customer experiences, higher engagement, and clear communication can prevent attrition, thereby improving customer lifetime value (CLTV). Research done by SiriusDecisions shows that companies with “high data quality management” generated 66% more revenue than companies with insufficient data quality strategies.
Clean, tokenized identity data significantly reduces the risk of identity fraud. Higher confidence levels can help enterprises improve pass rates, thereby plugging revenue leakage.
OPEX Savings: A single repository of identity tokens for all business lines and operating channels can enable organizations to consolidate their identity authentication application landscape and reduce operating costs. It also helps rationalize the identity and authentication architecture and standardize customer service operating models, both delivering higher efficiency gains. Moreover, better pass rates for assisted service channels like the call center can be translated to lower personnel costs.
*Source: Prove proprietary research based on public data available from Fortune 100 companies and Prove proprietary data.