Identity is a major topic of discussion in the modern world. In business, much of the debate revolves around personal identifying data, its uses and the ethics of its use. This is the age of opt-in identification, when every website you land on now throws up a box asking for your express permission to share your data.
In recent years, this debate has led to the emergence of the so-called ‘privacy agenda’, the GDPR, checks on unregulated data collection and use. Online, businesses have had to adapt to a world where the tracking cookies that drive targeted advertising can no longer be deployed without a web user’s consent. Where personal data cannot be collected for one purpose and then used for another without permission.
As with many such things, what was originally viewed as a regulatory hindrance to the free flow of commerce has now been recast in a positive light. From the ashes of the old Wild West free market of cookies and web tracking, the concept of identity-based retail has arisen. By encouraging customers to willingly share data by signing up for accounts, loyalty schemes and other perks, businesses can gain access to better customer insights than ever before. Direct data about every individual that allows them to engage on a personal, one-to-one level.
So much for the digital world. But what about physical retail? Does any of this have any relevance in shops and stores?
In a word, yes. Physical retail is no stranger to collecting customer data and running opt-in schemes – loyalty programmes are a stand-out example of this. But nowadays, with modern POS terminals and kiosks and touchscreens throughout a typical store, the opportunities to get customers signing up and opting in are more plentiful than ever.
Here are four reasons why opt-in identification is something to take seriously in store as well as online.
Secure and compliant data capture for the whole business
Consumers are well accustomed to being asked to sign up for newsletters or promotional emails or other perks when they shop online. Why not in store, too? Whether online or offline, any place you can capture customer data with their consent is a bonus. Customer data captured at the till or on a sign-up form at a kiosk is available to use across the business. Likewise, through identity-led commerce models, data captured online can then be used to personalise and improve experiences in store.
Making shopping more omnichannel
If increasing the pool of available customer data by capturing it both online and off benefits the retailer, it has its advantages for customers, too. In many ways it is shoppers who are driving the closer alignment of digital and physical retail. It is consumers who want to use their smartphones to compare prices when stood in a shop. It is consumers who want to be able to find products they like online first and then head into their nearest store to try it out.
What people also want is a seamless, consistent experience whether they are shopping in store or online. They want to be able to walk into a shop, be identified quickly the way they are used to now online, and have their order ready to take away. Or get their loyalty points discount applied without having to ask. They want personalised service. These are key reasons for making account-based commerce the norm in stores as well as online.
Increased efficiency
One of the challenges ecommerce is facing is how to smooth over the ‘friction’ that comes with customers having to input account details every time they shop on a site. Consumers like the benefits opt-in identification brings like control over their data, personalisation and targeted messaging. But they don’t like having to remember and type in passwords. Especially when they forget them.
It’s actually easier to get around the authentication barrier in a store than it is on a website. Retailers can assume most of their customers carry smartphones nowadays. Branded apps can be programmed to send push notifications to shop POS systems, instantly identifying the customer. There’s also talk of governments rolling out universal ‘digital identities’ much the way they issue passports and driving licences. Stored digitally in the cloud, biometric scanners on kiosks or POS touchscreens could be used to verify who that person is, again instantly.
In stores, this has potential that reaches far beyond loyalty schemes and personalised service. One idea is that digital identity technology will replace payment cards. First through shoppers ‘tapping’ their smartphones in an extension of the digital wallet idea. And then solely through biometric verification. Less for shoppers to carry with them and smoother checkouts.
Increased engagement and trust
The whole ‘privacy agenda’ has been driven by consumers’ dislike and concern over private identifying data being collected behind their back. But what also emerged from the journey that led to the GDPR was that consumers don’t mind their personal data being used per se – they just want to have control over how and when it is used. In fact, most people are more than happy to exchange personal details for tangible benefits like better offers, loyalty rewards, or a smoother, more personalised shopping experience.
Offering these things via identity capture increases engagement. Doing so openly, transparently and honestly builds trust. People appreciate retailers that are upfront about it.