Jason Rose - Balancing Personalization and Trust in the Age of the Customer

We continue with the topic in this case. Now a vendor presentation and Jason Rose is showing us what's available. Thank you very much.
Great. Thank you, Martin. And good evening, everybody. I think this is a record for doing a keynote without a drink in the hand at any conference I've been at, for sure. My name is Jason Rose. I work for giga is actually how the company's name is pronounced. And we work in a very specialized area of identity and access management focusing specifically on the customer. And when you deal with a customer, obviously there's a strong balance that needs to be struck between ease of access and getting those customers a reason to sign up and subscribe to your service while balancing that with security and trust. And how do you create that appropriate balance? So I'm gonna go through a few trends that we see really impacting this area in a big way. So what we've seen is customers are becoming more and more demanding in terms of volunteering their information and making sure that there's a strong exchange of value for the data they're providing.
We've seen some pretty big evolutions in this space. So moving from the corner grocery store, or earlier this morning, when I was in Munich, I saw the farmer's market and having that real experience in the physical world where you can see the person coming, you know who they are, you know, they're purchasing patterns and you can serve up a very nice personalized experience. The one in the middle is a actually a big us retailer called target, which some of you may or may not be familiar with. But I find this case actually particularly fascinating because here's a case where target employed a fairly sophisticated consumer analytics team and were able to predict that one of their customers was actually pregnant and based on the purchasing patterns of that person. And they started to send tailored and personalized information for baby wipes and diapers and all the things that you would need on the new arrival to, to her home.
Well, it was great. She was actually pregnant and, and was expected, but however, she hadn't told her parents, it was a teenage girl. And of course the parents were quite upset that target had begun sending these pieces of information to their home. So again, here's an example where you need to really balance the information that you have. Here's a case where they got everything right about that consumer, but yet they had crossed the line of consumer trust. They did not get that. Person's often to actually serve up that personalized information. Now, finally, if you use things like this is an example of Google now where Google has even gone beyond the point where you don't even need to search for the weather. I wake up in the morning, it tells me the weather in Munich. It tells about the approximate time to get from my hotel to the conference here so I can leave on time.
It alerts me. It really begins to serve up a very nice personal experience for me and in doing so, Google has actually built one of the most trusted brands on the entire internet by innovating entire products around their customer. Understanding now, the other interesting aspect of this, and I know many of you are security and risk experts is really the global sec security and the regulatory environment around personally identifiable consumer information is certainly one of the most dynamic and changing environments. And not only that is changing very rapidly on a regional basis. So whether it be the implementation or the FA phase in of the new EU general data protection regulation, which comes along with some pretty hefty fines, if you don't get this right up to 4% of annual global revenue potentially at risk, cuz this is phased in over the next couple of years, but even more importantly in many cases is the reputational risk that you face.
I know in the United States with consumer credit cards being breached on a regular basis, big retailers are actually facing massive loss of customers impacting the bottom line and actually seeing incredible turnover in executive teams that allow these types of breaches to happen. So not only is our organizations facing increasingly fragmented regional regulations that need to be complied with, and I know Germany's privacy regulations are very different even than the broader EU regulations. And then if you move to north America, which many people think is fairly ho homogenous, you know, the United States actually has fairly laed regulations, whereas Canada, where I'm from. And actually it's interesting to hear Jackson and Kim also being from my home and native land. I'm glad CU our Cole had a great deal of Canadian content in this evening's presentations is actually much more restrictive and have a much higher degree of regulatory requirement than what we see in the United States.
So again, organizations are now forced to really look at this, not only in terms of the risk to the reputation, but also in terms of the global environment they're operating in and how do they manage this ever evolving landscape of requirements. And this really leads us to a premise that we feel as you go through and you register for your favorite website, whether that be the independent or, you know, any number of other publications or vendors or brands that you work with. Fundamentally, we find that these registration and profile management systems for consumer facing organizations are broken and they're broken for a variety of reasons. Many of which are actually out of the control of the it teams that implemented these solutions over the last three to five years. And certainly the first of these is, is no surprise, right? Of these systems were architected well before mobile was really even contemplated.
And if you look at the chart here, even going back a short of time as four years ago, mobile was still a fairly small fraction of the traffic. Whereas now in 2016, it's well over 50% of the way customers choose to interact with their brands. So if you don't get your mobile strategy, right, for ensuring cross device identification, but also the registration process via that mobile device, you are putting yourself in a very risky and tenuous situation with your customers who prefer to come in by via the device. We're also seeing a trend now towards a multifactor authentication and eventually we expect to see the death of the password. And I don't think there will be a very big group of mourners when the password does eventually die, because it is certainly the ban of most, most people's existence. I know I can never remember a password if it's not one of two or three pre-selected passwords, I have forget it.
I'm going into the lost password workflow and getting a, a second factor of authentication. So this is a trend that we're seeing that really most registration systems are focused around this concept of having either an email address, a user log on and a password. And really we're seeing a drastic change in terms of people really wanting to strike a, a more secure environment. We recently did a survey where we found 80% of people feel that a biometric authentication is actually more secure than a traditional username and password combination. So not only is it easier, I know on my iPhone, I I'm a big fan of the touch ID, but it's also considered more secure by consumers. So companies that can embrace and move towards this more secure and easier way for customers to authenticate are actually going to create better relationships with their customers and create a better understanding.
We also have seen a massive amount of change, whether it be from apple battling the FBI about that password hacking on their iPhones or the phase in and actually elimination. And then re-implementation of the safe Harbor act. The transpacific partnership actually has a number of data, privacy regulations impacting Asia. So really as global organizations, a one size fits all approach to storing understanding and having customers opt in to different marketing programs doesn't fit anymore. You really need to be able to create a dynamic environment where you can store data in the right location market. The appropriate pieces of information is completely private and provide a forum for customers to actually go in view their profile, understand what they've shared with you, and really be able to take control of that relationship and what the data they want to share. And then of course, you know, being a chief marketing officer myself, I know there's a, a plethora of vendors who are trying to help me better market to my customers.
And this is the latest marketing technology landscape. And I think if you defocus your eyes and look at it, you'd probably see a unicorn or something pop off the page, but really you can see the technology landscape has become so complicated. That information is coming in from all different directions and all different types, but not only that your technology landscape today is very different than tomorrow. I thought it was interesting in Kim's presentation, where he talked about the adoption rate of cloud platforms. You can see here that as a marketer, I can plop down my credit card and probably buy two or three different applications, implement them myself with a couple of folks in my team and have an entirely new set of attributes around my customers all within the space of one to two weeks. So you can imagine trying to deal in an environment where you don't know what data you're going to actually have on your customer tomorrow becomes quite challenging.
So a true big data dynamic data structure is actually really required to service this customer use case. So really having the ability to put forethought to the side, not having to pre structure everything in the database and be able to bring information into the database as it's generated really becomes a key requirement. So again, it's for these trends that we really feel this full registration and profile management system is really broken, whether it be customers moving from the web to mobile devices, from passwords to biometrics, from very structured, small sets of data, to extremely large, big data sets where really, truly, you don't know what information is gonna come at you and a security and compliance environment that has really expanded in scope, but also fragmented in terms of regional requirements. All of these things really require a strong look and focus at customer identity as a specific domain, but there is hope we've been working with a number of leading companies in terms of being able to serve up really incredible customer experiences.
And the interesting thing is is that if you get customer identity, right, not only does it allow you to build better relationships with your customers, but in many cases, it allows you to innovate entirely new products. So UN bale roamco is actually a big shopping mall owner in, in France and in various parts of, of Europe. And what they've done is you can imagine when you go to a shopping mall, one of the bans is actually finding your car after you've parked. So they've actually integrated their customer identity management system in with the parking beacons and also helped customers by mapping out all of the shops inside the mall. So you can actually optimize your route to do your shopping through the mall using location analytics. So the key thing about this is you can see some of the impressive statistics in terms of how they've grown their loyalty program and increased registrations.
But the key thing is, is they're actually innovating new and interesting ways for their customers. Actually, it's not even their customers. It's the customers of the shops in the mall to really interact with them, to give them a reason to volunteer information so that then they can serve up a more relevant experience and solve some of the biggest challenges that they see in terms of people preferring to stay at home and shop online versus coming out to a physical retail outlet. So a really interesting case where if you can know and understand your customer preferences, really understand some of the big challenges they face. You can solve some big problems and drive some pretty fantastic results.
Neutra known is another really interesting use case. They are obviously a consumer packaged goods brand specializing in dairy products. And one of the things that they found is a few years ago when China had the scare around the baby formula, having been contaminated is they actually had discovered that there was becoming a gray market for baby formula in Europe. And they were actually running in shortages on baby formula. So many mothers actually couldn't get their performed formula here in Europe because people were coming over and buying so much. And what they were able to do was actually implement a system where they could actually identify the people that were actually making the purchases and actually were able to regulate the purchase of the baby formula via customer identity to really make sure that they had an appropriate supply. So they used it as a way to really regulate the supply environment, to make sure that they had the formula for the mothers who, who really needed it.
So again, a great case of being able to link the products that are being sold to the consumers that are purchasing them and bringing this information into a single experience across, as you can see here, one of the Nutri vending machines, devices, web properties, and right into retail stores and chains as well. So really a true cross channel use case in, in this particular case as well. So really again, the examples here being cases where not only have they been able to leverage customer identity, to really drive logins and signups and build relationships, but also to innovate entirely new ways of interacting with their customers. So really, as we look at customer identity platform management, we look at it in terms of three key steps in that process. The first is actually providing a reason for those customers to connect with you as a company and as a brand.
So whether that be in the case of unveil, roamco where they innovated their new parking and mall kind of transport application to being able to make that registration process as seamless as possible via things like social login, biometrics, multifactor authentication, and then being able to integrate that in with either loyalty programs, gamification, and other types of activities, so that people really have that reason to volunteer their information and receive value in exchange for the data they're volunteering to you. Now, the second step in this process we look at is around collecting the information as you collect information, many marketing departments are big purchasers of third party data, right? Web click data, click stream data from third party sources, but really what, what we see in the customer identity management spaces, we really want to deal in the first party space. This way we can ensure that we know who you are and that you've opted into the appropriate offers that are being sent to you.
So you don't run into a misstep as in the case of target that I provided earlier, but in doing so, you also want to provide transparency and providing that mechanism by which your customers can actually manage their own profile. See what information they've given to you, and actually maybe even provide you more information through things like something we call progressive profiling, where maybe in the first instance, all you ask for is username and password. But as somebody builds a relationship with your company and your brand, maybe you would ask for, if it was a, if you're selling cameras, you would ask, what type of photographer are you? Are you a casual photographer taking pictures of your family? Are you an amateur? Are you somebody that is more on the professional side? And how can we better serve you as a cus as a customer? And of course, in storing the personally identifiable information, making sure you have a secure cloud-based data store that can actually meet and conform with the various global regulations and the fragmentation thereof in the various regions.
And then finally making sure that as a brand, you're actually using this information in the most effective way to help your sales marketing, but also customer service support and to innovate around new products. So really being able to connect this information back into all of your other marketing ecosystem, customer service ecosystem, and sales ecosystem of tools to make sure you're leveraging that information in an appropriate way. So this is really how we look at the kind of end end customer identity management space with the big trends of building more customer intimacy and trust based on secure first party opt in and building trusted relationships, making sure that we're fixing a lot of the big problems we see around mobility passwords, big data security, and compliance, and then being able to really connect with customers, collect the appropriate profile information with a transparent, trusted framework, and then being able to utilize that information to make sure you're serving up the best possible customer experience and innovating new products. So with that, I'd like to thank you very much for your time, and I hope you enjoy the rest of the evening. Thank you.
Thank you very much, Jason. Very much on time. There's no questions in the system. Nobody submitted a question, but I still have one question from my side. To what extent are you using big data technology in your, in your platform?
That that's a great question. So we actually inside giga, we're storing about 800 million customer identities in our cloud data store. As of today, we actually store all that data in a no sequel data store, which enables us basically to define certain fields in the data for opt-ins or usernames passwords, things that are known upfront, but then basically have almost an Analyst append to the record that if Facebook say were to change their terms and conditions and provide more information, we would be able to automatically bring that in without having to change or recast the data store.
Okay. Very interesting. Thank you very much again. Great.
My pleasure. Thank you.