Your customers care about their privacy. As a business, it’s your job to prove that you value customer privacy.
How can you do that? With effective identity verification protocols.
An effective program doesn’t just build trust with customers. There’s also a compelling business ROI for identity verification.
Often, gaining buy-in requires tech leaders and security professionals to prove the ROI of these platforms. A strong, trust-building IDV program helps you improve customer experiences, reduce abandonment rates, and increase retention. In other words, if you’re considering upgrading your identity verification program, it’s important to think about how you will measure the impact.
How a Strong IDV Program Boosts Revenue
Identity verification can be a powerful tool for increasing revenue. In fact, according to a 2022 consumer research study, 80% of customers said they would be more willing to interact with a business online if it had strong identity verification methods in place.
Therefore, businesses in competitive spaces like banking and finance, ecommerce, and healthcare can stand out with enhanced IDV protocols. As a result, there a number of metrics and KPIs businesses can track to measure ROI of an identity verification program. Some top metrics include:
- Customer satisfaction scores – Is a digital identity verification program worth it? Ask your customers. Generally, a good ID program will help to boost customer sentiment.
- Cart abandonment rates – Does your business experience high abandonment rates? This could be a result of customers seeing your security measures as inadequet. An increase in conversion rates will help you prove ROI.
- Net Promoter Scores – Improved customer experiences lead to better reviews, more positive word-of-mouth marketing, and will turn more customers into promoters of your business.
Ultimately, these are just a few of the metrics you’ll want to consider. There are many more, including more efficient marketing and lower acquisition costs. However, to get the best ROI, you need to set your program up for success.
Creating an IDV Program: Questions to Ask
Here are five essential steps that can help your company create best practices for your identity verification procedures:
1. Specify your objectives
To fully comprehend the needs for identity verification, one must have a thorough awareness of the parameters under which the business operates.
2. Identity what constitutes success
Provide a comprehensive and reliable system to assess the effectiveness of identity verification procedures and investments.
3. Use the appropriate tools
Use the best tools you have at your disposal, ones that meet your needs and can be linked together to create a dynamic verification process that reduces the risk of fraud and compliance violations while also reducing friction.
4. Prioritize optimization
Make sure the performance of your identity verification program is optimal at each stage of the customer experience.
5. Put tiering in place
Tiering is a waterfall method of identity verification that enables companies to always choose the best source for identity verification based on each specific circumstance. Dynamic routing is made possible by it, and this boosts performance, gets rid of fraud, and enhances the customer experience.
5 Questions to Ask to Improve ROI in IDV
Today’s progressive companies are approaching identity verification more strategically, realizing its significance goes beyond fraud prevention and legal compliance.
Optimized identity verification and onboarding, which take place at the beginning of the customer journey, set the atmosphere of the whole experience and can increase customer loyalty and decrease abandonment.
These are some questions you should ask in order to get the most out of your investment in identity verification:
1. How important is a verified individual to your company?
Establish your objectives for identity verification and customer onboarding to make sure your processes are compliant, flexible, and scalable.
2. Do you have the proper equipment to safeguard customers and provide a fantastic onboarding experience?
Develop a multi-layered strategy for identity verification so you can onboard new customers in any circumstance.
3. For each risk profile, are you reviewing identity verification sources and workflows?
Make your choice of a platform that enables you to create, test, and deploy verification workflows that are quick and secure in every market.
4. How well is each source of verification doing, and how can outcomes be enhanced?
Use a tiered strategy that enables your company to continuously navigate to the best, most pertinent data source for identity verification.
5. Which KPIs ought to be monitored to evaluate success?
Provide a comprehensive framework for measuring outcomes that takes into account customer experience, cost, compliance, and levels of fraud.
Your company could employ a more strategic approach to onboarding new customers by taking these questions into account and implementing a layered strategy for identity verification that fosters brand loyalty and boosts revenue. At FTx Identity, we are devoted to ensuring your business is a success while keeping your customers’ information safe and secure. We take pride in providing you with the peace of mind that comes from knowing all data will be truly protected. Ready to take the next step? Give us a call today to set up a consultation and demo with one of our specialists today!