It’s time to start asking for facts ABOUT identity data, rather than FOR identity data
Personal data is now abundant, and cheap enough to waste - we need to think differently about what we share
Hi everyone,
Thanks for coming back to Customer Futures. Each week I unpack the fundamental shifts around Empowerment Tech. Digital wallets, Personal AI and new digital customer relationships.
This is a PERSPECTIVE edition, a regular take on the future of digital customer relationships.
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Whenever a business needs more customer data, they can simply fetch it with an API. Tap up the latest '360 view of the customer'. Or hit up some 3rd party data broker.
And in the darker corners of the web, they can just mash together the results of the latest data breaches.
In businesses, and right across the digital economy, customer data is treated like it will always be available, and accessible, right when it’s needed.
It’s seen as an abundant resource.
Years ago Clay Shirky wrote that when something becomes abundant it becomes 'cheap enough to waste'. And that’s exactly what's happening today with personal data.
We’re wasting it.
The reality is that once customer data is captured and stored inside a business, there’s a half-life to its value. It degrades over time.
I’ve said previously that ‘CRM is where data goes to die’.
Ask yourself: how much customer data do our businesses collect? And how much is actually used? How much value is created with it, honestly?
But a change is coming.
We’re about to trigger a movement towards LESS data. Because once customers have new digital tools on their side, we'll see a massive shift in the data collection game.
New digital wallets and verifiable credentials will be able to handle personal data in new ways.
Businesses will be able to ask for facts ABOUT the data, rather than FOR the data.
Think about that for a second.
The data itself can remain with the individual. But a verifiable answer about the data can be shared easily, perhaps with just one tap.
The business can still be assured where the data came from, and to whom it was given. And still check if it was tampered with, or revoked.
In many cases, businesses won't need to ask for the underlying customer data at all.
Imagine the impacts on digital customer interactions. Fewer lengthy forms. No more typos. No more copy/pasting personal data from site to site.
Instead, companies can ask customers some simple questions, requiring only a 'Yes' or a 'No' in return.
Think of it like playing the popular board game 'Guess Who?' Where players only get to ask each other Y/N questions. In the game, you’d ask"Are you wearing a hat?", or “Do you wear glasses?”
With digital wallets and verifiable credentials, we can soon do the same with customer profiles.
Are you a loyalty card holder Yes or No
Is your salary over $30,000? Yes or No
Is your address within a certain district or region? Yes or No
Are you over 18? Yes or No
Do you have a valid Drivers License, together with the appropriate insurance policy for this car (defined by a governed set of rules)? Yes or No
Is your work visa valid for more than 180 days? Yes or No
Has your access credential been revoked? Yes or No
We could go on.
Spend more than 8 seconds looking at this and you’ll realise it has the potential to revolutionise customer data collection.
Back-office databases will become full of ‘Yes’ and ‘No’ fields. Rather than storing the raw customer data. Cheaper to collect, store, secure and insure. And less attractive to hack.
Over time, the business becomes more compliant, more efficient, and smarter with data.
Many people get excited about the potential of ‘Zero Knowledge Proofs’. Using clever maths to minimise the data shared with a business. But many have raised the alarm that ‘ZKPs’ will be shared in digital channels that will reveal more about you over time. And that will lose many of the privacy benefits.
But still.
Sharing facts not data speaks to the beating heart of data protection. What customer data are you collecting and why? And is the business being a good steward of the data?
Is this a dream approach for Chief Compliance Officers everywhere?
The arrival of these new digital customer tools will also disrupt the customer data supply chain we rely on today. That includes the many 3rd party data brokers currently rent-seeking on ‘personal data profiles’ today. Those 3rd party APIs spraying personal data all over the digital economy.
Over time, you can see that the digital economy can shift from an abundance of customer data... and start treating it like it’s a scarcity.
Something to be treasured, looked after and valued.
Today, every website and mobile app is repeating the same data (over) collection story, over and over again. But new digital wallets and verifiable credentials will mean we can not only make data instantly verifiable, but also lighter, faster and more private.
It’s time to ask for facts about the data, rather than ask for the data.
The knock-on impacts on the digital customer relationship is even more profound. Because when it comes to customer data, less really can mean more.
LESS data, more privacy.
LESS data, more security and data protection.
LESS data, more trust.
All while offering better and faster customer experiences and streamlined interactions.
It’s a win-win.
If that’s not the basis for a long-term sustainable digital customer relationship, I don’t know what is.
OTHER THINGS
Whilst this is a perspective edition, there are some important read-worthy Customer Futures things to point to this week.
News: Australia’s digital driver’s licences to get global interoperability out of the box READ
Webinar: Business Models for the EU Digital ID Wallet and Decentralized ID (TODAY) ATTEND
Article: Comparing the UK's and EU's Digital ID approaches READ
Resource: The Comprehensive Report on Mobile Driver’s License Adoption READ
Post: Why “Hyper-Personalisation” in Marketing Is a Dead End – And What To Do About It READ
Article: The European Digital Identity Wallet (EDIW) could be a game-changer for European airlines READ
Post: Putting that R back in practice - 'MeRM'
Video: Can the GenAI industry survive if the web dies? WATCH
Thanks for reading this week’s edition. Stay tuned for more Customer Futures soon, both here and over at LinkedIn.
And if you want to learn more about the future of Empowerment Tech, digital wallets and customer engagement, then why not sign up:
Said it for years … organizations should CONNECT data .. NOT COLLECT data.