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Ensuring flawless customer authentication: A look at its crucial components

Over 89% of consumers switched business allegiances due to a disappointing customer encounter, as per the Oracle's Customer Experience Impact Report.

Ensuring accurate customer identification: a three-step guide
Ensuring accurate customer identification: a three-step guide

Ensuring flawless customer authentication: A look at its crucial components

In the rapidly evolving digital landscape, businesses are under increasing pressure to provide seamless and secure customer authentication solutions. A well-rounded approach to customer authentication should focus on three key elements: flexibility, security and compliance, and price.

Flexibility

To accommodate diverse user needs and use cases, it's essential to implement a combination of authentication factors. This includes biometrics, authentication apps, and tokens. Supporting adaptive or risk-based authentication that adjusts security requirements based on factors like user behavior, device trust, and location can help balance security and user experience. Seamless integration with existing identity and access management (IAM) systems ensures consistent policy enforcement and easier user management. Providing fallback mechanisms maintains security without compromising user convenience, such as using time-sensitive one-time codes or magic links instead of less secure methods like SMS OTPs. Offering multiple deployment options (cloud, on-premises, hybrid) caters to the organization’s infrastructure.

Security and Compliance

Prioritizing phishing-resistant measures like FIDO2 security keys and authenticator apps is crucial over SMS codes, which are vulnerable to interception. Enforcing multi-factor authentication (MFA) for high-risk accounts, privileged users, and critical applications is another important step. Continuous monitoring of authentication logs for suspicious behaviors like unusual login patterns helps detect and respond to threats early. Regularly updating and reviewing authentication policies in line with evolving security threats and compliance requirements (e.g., GDPR, HIPAA, PSD2 for payments) is essential. Solutions that provide user lifecycle management and risk scanning through machine learning context analysis offer proactive vulnerability detection. Integrating consent management templates and privacy features ensures adherence to data protection laws.

Price Considerations

Considering the total cost of ownership including licensing, deployment, integration, and ongoing management is vital. Enterprise-grade platforms with extensive features may cost more but provide scalability and comprehensive management. Cloud-based providers like Microsoft Entra ID can offer cost-effective deployment, especially if already using related ecosystems like Microsoft 365. Balancing cost with the value of security and user experience improvements is crucial, as weak authentication can lead to costly breaches and lost user trust.

With more than 18 million UK consumers shopping regularly with mobile devices, there is increased pressure on organizations to offer a fluid omnichannel experience. Advanced authentication methods, such as biometrics, are becoming more popular due to their streamlined user experience and increased security. Building custom solutions or extending internal identity and access management (IAM) systems for customer authentication can be expensive and risky. For large B2C enterprises, the right authentication system must scale elastically to support millions of users. Best-of-breed, cloud-based authentication solutions maintain industry certifications such as ISO27001 and comply with regulations like Children's Online Privacy Protection (COPPA) for data safety. Consumers generally accept traditional registration processes but expect less friction and more options, such as logging in with social network credentials. Up-front hardware expenditures, licensing, and maintenance costs are associated with building custom solutions. Additional development resources are needed to integrate services that support marketing, sales, and services for custom solutions. Customers consider the value they receive from a brand during the registration process and may leave if they perceive it as poor.

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