There is a lot of discussion around digital trust and what it means. For us at Callsign it’s fundamental to a better digital ecosystem and driving accountability online; trust sits at the core of every single digital interaction.
In this article we’ll explain what this means, how we define digital trust, and the proven monetary value it can bring to businesses like yours.
Digital technologies have enabled new revenue streams and while growth has been quick, sacrifices have been made. UX for instance has become a core principle of the digital world to some degree, while security and privacy have at times taken more of a backseat.
This should come as no surprise. Headlines abound with stories about security breaches and privacy concerns that highlight the challenges we face across these very elements. Research shows that citizens value more than just experience, all four of elements of digital trust are important:
So what happens when we don’t get this right, and how can investing in these pillars of trust correlate to business growth and the success of your teams?
The importance of digital trust for your businesses
In the short term, a lack of investment will lead to customers moving to competitors in search of assurances around privacy and security. Costs start to rise, and budgets get cut as greater investments are needed to win and retain customers. Our latest research shows we may already be seeing this.
Our latest research also found that privacy was the number one influencing factor for users globally when deciding who to bank with, shop or subscribe to. Not applying this consideration will lead to consumers becoming more hesitant with their data, changing the way we interact and transact online and likely forcing new regulation through.
Longer term, the risks run even deeper. Without digital trust, a digital society is not sustainable – which may well result in a regression that would deeply damage any potential for economic or societal growth. If we can’t get the basics right now, conversations around Web 3.0, The Metaverse and AI all become more complex.
So what can be done?
The foundations of digital trust
It’s about digital technologies for digital challenges. At Callsign, we build and design our products around these four pillars, meeting the needs of both our customers and theirs.
Many of the technologies that we rely on day-to-day were never designed with security in mind. Bad actors know this, and are quick to exploit weaknesses in digital journeys, to the extent that 72% of consumers worldwide have either experienced online fraud or know someone who has. 52% of those victims have stopped using a company, its products or services as a consequence of being a victim of fraud.
This alone is cause for concern, but social media and online communications can amplify these fraud instances into a negative brand perception. So, it’s critically important for organizations to employ technologies that can adapt to changing circumstances as rapidly as today’s fraudsters and scammers. It’s not enough for those technologies to be safe, however – from the viewpoint of customers, they have to also feel safe.
One way that organizations can approach this challenge is to examine the overall role digital identity has in aiding the customer journey. Rather than looking at security as only keeping people safe, it should be viewed as the method that lets them get on with their digital lives. Which is why our solutions can detect 40% more fraud, whilst maintaining 99% acceptance rates.
Customer experience and accessibility are crucial drivers of trust online, but our research with Cebr found that only around two-thirds of the population have positive online experiences. This includes ease of use and perceptions around the security and types of authentications used to access online services. With more than a third of the global population having difficulty accessing online services, businesses risk losing out on untapped revenue potential, and customers may turn to competitors that offer easier-to-use platforms.
To improve online UX, organizations should consider reframing the way consumers transact online. Digital identity solutions can play a more central in online journeys to offer more tailored and streamlined experiences. These solutions should be fair and inclusive, as some groups within society may not be able or willing to use certain technologies, such as physical biometrics or SMS messages, that are widely used as authenticators. Organizations must orchestrate a range of authenticators to meet the needs of their entire customer base, ensuring that all of their customers feel that their online experience is unhindered and inclusive.
Privacy and data transparency
The importance of data transparency and accountability is on the rise, with Gartner estimating that 75% of the global population will have its personal data covered under privacy regulations by 2024. As more countries introduce data privacy laws, it’s crucial to understand the state of digital privacy in each market. This includes consumer perceptions of how their personal digital data is used, their trust in online businesses storing personal data, and their trust in new online technologies.
To build digital trust, organizations must prioritize data transparency. Adopting solutions designed with privacy in mind rather than relying on intrusive and continuous monitoring can send a strong message to customers and build trust.
Our approach is to anonymize and obfuscate data, ensuring that no personal details are collected or processed. In essence we know who you are, without knowing who you are.
Technology and ethics
The ethical use of technology is essential to building trust in the digital world, but our survey found that only 54% of respondents believe that organizations act ethically.
One technology area that is under ethical scrutiny is AI. Organizations must ask the right questions of their vendors and technology teams at every level to ensure responsible application and use of AI. Taking responsibility for the use of technology not only helps with regulation but also enhances reputation and advocacy, contributing to building trust with consumers.
We understand the growing importance in this space and solutions have these principles build in, from our device fingerprinting being non-cookie based to our industry recognized AI and machine learning.
Organizations looking to build and maintain digital trust must develop a unique strategy tailored to their specific goals and capabilities. This requires cross-organizational input and collaboration, as well as technology solutions that allow for enhanced operational efficiencies.
The investment may see like a complex challenge, and this is where partnering with the right vendors can help organizations achieve their goals more effectively. And the realization of these benefits can be quick, from reduced customer churn and operational costs to greater customer advocacy and increased product usage.
The first step is to reframe the focus away from transferring physical processes to digital, to transforming how we interact digitally. This will allow your businesses to pivot in ways you may not even realise.
This is where we can help. We do more than protect against fraud:
- we help take unnecessary customer friction out of payment flows and online interactions,
- we protect and preserve privacy and,
- we use world leading technologies from behavioral biometrics to device fingerprinting to achieve this
Why not see for yourself how our customers have seen increased customer advocacy, reduced fraud, and greater transparency across customer journeys.
Book a demo with a member of the team today.
** Statistics from Callsign Digital Trust Index and Callsign industry and consumer research into online scams 2023.