Customer Identity and Access Management (CIAM) is specific twist on IAM, focused on customer identities. Where traditional workforce IAM is focused on security, productivity and compliance, CIAM aims to improve the customer sign-up and login experience as well as reduce the risk of account takeover, which is rampant in the consumer space because of password reuse. CIAM isn’t just limited to consumers, but can also apply to other businesses, such as a company’s enterprise customers, partners or vendors.
Scale is also an important factor in CIAM. Whereas even large enterprises with a few exceptions only have employees in the hundreds of thousands, some companies have tens or hundreds of millions of customers. Consequently, CIAM solutions must be able to scale extremely well.
In the identity space there are both vendors that specialize in CIAM and vendors that handle both customer and workforce identities. Regardless of which type of vendor you choose for your CIAM project, it’s useful to keep in mind the key benefits that a CIAM solution should provide.
Companies often need to let business partners access some of their applications, such as order management or inventory systems. As increasingly more businesses have IAM solutions in place for their employees, it makes sense to just establish trust between the respective IAM solutions so that the partner’s employees can single sign-on to the inventory system instead of having to use a password. This not only increases security, but also improves usability.
Consumers have to remember a lot of passwords. Facebook, Twitter, Instagram, YouTube, Yelp, banks, car and home insurance, pharmacies, their grocery store, online streaming services, Uber, and so on. The number quickly adds up and it’s humanly impossible to give each service a unique, strong password. As consumer services are breached around the world, hackers accumulate more and more credentials, which they use for password stuffing attacks via massive bot networks.
This puts consumers who reuse passwords at risk. With CIAM, you can give the consumer the option to add a second authentication factor or sign in with their social identity, which provides a much greater protection against account takeover.
Just like CRM and HR solutions are not something companies should build themselves, neither are IAM solutions. IAM vendors provide a robust platform that can easily be integrated with your web properties and provide the scalability, availability and extensibility to support your growing and changing business.
IAM and CIAM requirements are similar when it comes to scalability, security, and accessibility. Both must include these three components to guarantee a great user experience, whether for internal employees or business partners. The ways in which CIAM goes beyond the traditional IAM approach are:
According to Gartner, CIAM is an essential component to building solid customer trust. In fact, by 2020, companies that implement digitally trustworthy customer solutions will generate 20 percent more online profit than those that do not. Companies can build a strong foundation for customer identity, while minimizing operating costs and maximizing revenue and user experience with a robust CIAM solution.
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