How personalization and data privacy can work together

Today, personalization is the cornerstone to creating exceptional customer experiences and cultivating brand loyalty. Consider the success of platforms like Netflix and YouTube, which thrive on recommending content tailored to individual preferences and leveraging data and analysis to make each user feel seen and valued.

In fact, not having customized offerings could lead to customer unhappiness. In 2022, McKinsey found that 71% of consumers expected companies to deliver personalized interactions, and 76% felt frustrated when that didn’t happen. That remains true today.

Photo credit: Monster Ztudio / Shutterstock

It’s evident that the stakes are high – failing to deliver personalized experiences not only leads to customer dissatisfaction but also a significant loss in competitive edge. However, getting the data needed to create such personalized offerings has never been more difficult.

“In the past, you would just use a platform and not think too much about how your data was being used,” says Glenn Gore, CEO of Affinidi, a technology firm offering data and identity management solutions. “Now, people are seeing the impact of the data sharing and tracking that was commonplace in the past, and they don’t like what they’re seeing.”

Consumers have become more aware of how their data is being used, and data privacy is becoming a major concern. Brands like Apple, for instance, are increasingly building privacy protections into their products.

Glenn Gore, CEO of Affinidi / Photo credit: Affinidi

Alongside increasing regulatory measures to protect data privacy and a rising number of data breaches, companies must navigate complex terrain to provide the customized experiences their users crave.

“Traditional methods of collecting and storing data are no longer sufficient,” remarks Gore. “We need to rethink how we go about this journey.”

The power of zero-party data

The answer to this challenge lies in two areas: zero-party data and holistic identity management.

Zero-party data refers to data that a user proactively and intentionally shares with a company. This could include specifying product preferences, subscribing to a newsletter indicating their interests, or filling in surveys or polls.

For Gore, this information is superior: “With zero-party data, customers are willingly sharing that information about themselves, which is what makes that data so much more powerful.”

This type of information also allows companies to create highly personalized experiences without the privacy concerns associated with passive data collection.

Traditional methods of collecting and storing data are no longer sufficient. We need to rethink how we go about this journey.

It’s a much more accurate way of collecting information about users as well, as they actually tell the companies what they want. That’s much better than making inferences from user behavior or relying on second- or third-party sources.

The use of zero-party data is supported by holistic identity management, an approach that aims to “flip the script” on traditional methods of identity management.

Instead of having all this data stored and siloed in the hands of businesses, holistic identity management enables customers to store and manage their own personal data, controlling what they share with companies.

Imagine visiting an online fashion store for the first time. The brand knows nothing about you. But with holistic identity management, it can request for some pertinent details and lets you know why it needs this information.

Photo credit: vlado85 / 123RF

Besides basic logistical details like your shipping address, you could share more specific points like your style preferences, preferred colors, and even sizing information, allowing the business to provide you with a unique, personalized experience from the get-go.

This could also extend beyond one’s personal life. Holistic identity management – like the name implies – allows users to share professional information as well, creating opportunities for the different identities that one holds to “exist” together.

Here are some insights on how this works in more detail:

• How holistic identity puts the power of data back in the hands of consumers
• The wonders of holistic identity management: Sarah’s journey

With zero-party data and holistic identity management, brands can create greater trust with their customers. Data is shared willingly and transparently, and users still remain in control of their personal information, creating a kind of virtuous cycle.

“If I trust the company more, I’m willing to share even more about myself, and if I share more about myself, I’m going to get an even better experience,” says Gore.

A new way to do familiar things

Making holistic identity management the norm is Affinidi’s mission. With the Affinidi Trust Network – its suite of specialized products, services, and tools – the company helps businesses leverage holistic identity management and the use of zero-party data.

“We offer solutions built using open standards for businesses to easily integrate into their existing systems,” explains Gore. “These solutions are designed to be flexible and scalable, allowing companies to adopt decentralized identity management at their own pace.”

The Affinidi Trust Network is designed to create a convenient, privacy-first experience with consent-based data sharing, data protection, and personalization. Part of the suite of products is Affinidi Vault, which allows users to discover, collect, store, share, and monetize their data. Affinidi Login, a passwordless authentication solution, is another product under The Affinidi Trust Network. There’s also Affinidi Concierge, an AI-powered private personal assistant to help users optimize and manage their stored data.

Photo credit: Chay_Tee / Shutterstock

With all of these services and solutions, customer data is secured using cryptographic technology that utilizes verifiable credentials and verifiable presentations and it’s protected through tokens and keys.

These ensure a secure way to store and share personal data. Affinidi builds its solutions using open standards and protocols, such as OpenID for Verifiable Presentations (better known as OID4VP), which are set by organizations such as the World Wide Web Consortium, enabling interoperability across systems and platforms.

Dive into more in-depth insights on the nuts and bolts behind holistic identity management:

• Understanding the latest evolution in digital identity protection
• Centralized vs. decentralized identity management: Which is better?
• How companies can build consumer trust in an age of privacy concerns

“We are empowering users to take back control over their data and giving businesses the tools with which they can empower their customers,” Gore says.

Affinidi supports its customers by ensuring robust data protection, consent-based data sharing, and convenient one-click onboarding supported by biometrics. This enables personalized user experiences across various industries.

Affinidi also underpins a diverse range of businesses and versatile applications, from ecommerce to health. Here are some of the companies it has worked with:

• Gro Club, a bicycle subscription startup for kids, leverages Affinidi’s solutions to maintain data privacy and security while offering personalized experiences.
• Rozhub, a natural cosmetics brand, uses Affinidi’s services to better understand and connect with customers to meet their unique needs.
• Wellbi, an ecommerce apparel brand, uses Affinidi to collect zero-party data to improve personalization efforts and reach customers efficiently,
• IoT firm Enerlyf works with Affinidi to gain anonymized data to provide customized benefits – such as weather updates and energy consumption insights – while maintaining data privacy.
• Aasabie, an online marketplace, streamlines onboarding and verifies identities using Affinidi’s secure authentication and data management solutions.

By integrating these solutions, Affinidi enables its clients to build trust with their customers, align with stringent data protection regulations, and deliver highly personalized user experiences.

A new frontier

On the road ahead, Gore advocates for greater transparency between businesses and their customers to establish trust. While holistic identity solutions are a key part of creating personalized customer experiences that maintain data integrity, transparency, and uphold user consent, it’s also important for companies to continue communicating honestly with their users.

While holistic identity management is a new concept, Gore is confident in its ability to unlock new insights, improve personalized experiences for customers, and deliver new opportunities for brands – and that Affinidi will be at the forefront of this evolution.

“We want to play a transformative role in the new approach to data and identity management,” he shares. “With time, we’ll drive significant advancements in how identities are managed in the digital age and help both businesses and consumers unlock new opportunities with data.”

Affinidi is a technology company dedicated to changing data ownership for good. It envisions a world where everyone can effortlessly and securely control, manage, and extract value from their data.

Visit Affinidi’s website here.

EXPLORE AFFINIDI

This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.