How Important Is It to Verify the Identity of Your Customers?

How Important Is It to Verify the Identity of Your Customers?
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An emerging personalized marketing tactic that many brands are opting for is identity marketing. It is the practice of creating personalized offers you can use to engage with a particular set of consumers, like medical professionals, students, teachers, etc., based on their identity attributes.

These identity attributes are deep-seated among consumers. A prevailing concern relating to this form of personalized marketing is neglecting customer verification.

Leveraging Personalization

Identity marketing is a form of customer acquisition where you can engage with different consumer tribes through personalized offers. For example, Nike gives a discount of 10% to sports personnel, or Virgin Mobile gives 10% off to military veterans.

The power of identity marketing lies in the strength of targeting groups that share crucial identity attributes. It can include targeting these consumer tribes based on their occupation or life stages.

Brands targeting the members of these groups with a personalized offer make them feel rewarded. Such an action motivates a majority of them to show purchase intention within a short period. However, confirming that truly eligible consumers are the ones redeeming your offers is a pain point.

Customer Verification

The integrity of an identity marketing campaign’s offer can be protected with customer verification. The members of the consumer tribe must realize that it is exclusively for them. Otherwise, the whole campaign loses its appeal.

In the event of a customer verification failure, the brand’s reputation is at stake. If your target consumers find out that ineligible customers are also taking advantage of such a personalized offer, it can hurt your brand. Data suggest that 4 out of 5 consumers will reduce their purchase frequency, and half will lose their trust in the brand.

Through customer verification, you can also prevent discount abuse. The purpose of identity marketing campaigns is to engage specifically with a consumer tribe. Fraudsters opting for such an offer will hurt your margins and weaken your customer acquisition strategy.

The Role of Digital Verification

Confirming a consumer’s eligibility for a particular offer has been a concern for brands in the past. In a physical setting, you can check and verify the identity at the store. However, the same isn’t possible in the digital marketplace.

This scenario highlights the need for an identity verification partner to detect fraudsters. With digital verification, customers can opt for an offer from your brand by entering basic information. The verification process will help confirm the consumer’s identity, i.e. whether they belong to the targeted consumer tribe or not.

Various entities help achieve fraud-free, compliant and verified onboarding of consumers in less than eight seconds. Their swift services can help identify documents, authenticate data points, or confirm identity through facial recognition. You can refer to the services listed at AU10TIX while shortlisting the apt litigation partner for your brand.

Benefits of Digital Verification for Brands

One of the crucial benefits that you can seek from digitally verifying your personalized offers is to cut unnecessary expenses. It also helps make the offers more appealing to your target consumers by:

Fraud Prevention

Discount fraud rates are at 35% for search marketing programs. For example, companies offering personalized offers to students with a .edu email address is a severely flawed plan. The reason being students have access mail IDs even after five years of their course completion.

Replacing the .edu verification with digital verification can help reduce the discount abuse by more than 20%.

Reserving Resources and Time

Digital verification streamlines the process. Manual verification is often inconvenient for your target consumers. Your campaigns will need 75% less effort to implement, and you will save 5 to 10 man-hours every week.

Respecting Privacy

Privacy concerns are the biggest demotivator to gaining consumers’ trust. Honouring the privacy of your target audience is critical for running any personalized campaign. More than 87% of the Gen-Z population believes keeping their identity private is more vital than gaining popularity through likes on posts.

Digital verification only takes basic personal data and respects the user’s privacy.

Multiplying Performance

Any friction slows down the conversion process. With the help of digital verification, you can streamline the process of your brand’s customer verification. It will help you implement paid and organic demand generation campaigns that have the potential to drive your traffic.

Marketers also have access to the opt-in data that they can use for re-engagement campaigns later.

As you can see, identity verification is a crucial aspect of your brand. It can help you increase trust among different consumer tribes and drive traffic to your website.

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