Yeah, thank you, Warwick. My name is Phillip Messerschmidt, I'm elite advisor and Analyst for coping a call. And there are four topics I I want to cover today. As an introduction, we will talk about consumers and the consumer, the user experience. We will talk about Siam and the workforce.
I am, how they defer from each other. We will talk about Siam as an extended concept that it issam and a C D P. And last but not least, we will take a closer look at the Siam trends. To kick off the presentation, I borrowed some numbers from a vendor's consumer survey.
On the left side, we have 63% of the consumers are likely to leave an online service for a competitor who makes it significantly easier to log in. 77% of the consumers have stopped creating an online accounter to either too much security or required information.
So on average, we are talking about a 70% drop off rate due to poor user experience. So imagine that if we are taking that to, to numbers that would look like that 15 mil, 15 million out of 50 million potential and willing consumers will become actual customers. So imagine every one of those 35 million customers that are not joining, you would pay a single Euro for your service, 35 million euros. Would you be able to build a same service for that?
Probably, I would say so the the, the question is, isn't that enough? Isn't that good enough to have only 30% of the consumers stick to your service?
Because at this point in time, it's, we are just talking about the login. They have never seen your product, they have never seen your service. At this point.
You can, you could have the best service, the best product in the world if the login is, is just bad. The user experience for that is just bad. They will never reach your service. So what can we do about it? I think the first step we can do is we can understand what, what Siam means. So obviously in Siam there is a C and there is an im. And when we relate that to the workforce part for Im, you have pretty much the same terms. So administration, analytics and risk authentication, authorized nation, that worked pretty well in the, in the workforce environment and the workforce. I am in the past.
So we, we know that we, we are pretty much mature for the workforce part. And that is more or less the problem for, for managers or no, in general, when we are talking about the C in Siam, there's more than just consumers. It's consumers, customers, and citizens. So there are more aspects than just the end user, the classic end user.
The challenge with that is how, how can I serve the c as good as possible? And when we think about IAM in enterprises for workforce managers usually jump to a quick conclusion.
They basically say, I mean, I, I have my IAM for workforce, everything is working fine. Administration, analytics, authentication, authorization, they are all served. So now we just need to add the consumers, right? We have that all in place. It's working for the workforce part. So add the consumers and we have same, yeah, I I I see your face that my reaction's pretty much the same. So the big question is Siam, is that really the same like workforce I am?
No, I I don't think so. And we see that on the market as well. So why is that the case?
If, if we think about workforce and SIAM as two different disciplines, they are also two different perspectives from from the identity side.
So while workforce is, is working for an organization, they have a completely different motivation. They are trying to, to deliver a service. They are caring about being able to deliver their service. They're not caring so much about security. But that is also an important point for, for, for workforce identities.
On the other hand, we, we have the consumers, the sea identities as I would like to call them here, they care about getting serviced by, by, by you. So they are trying to, to log into your service to get a a certain service and they also care about their data. So for the workforce part, our task as I am engineers is to enable them. Why for the Siam part, for the C identities, we need to deliver the service on the one hand and we need to earn that trust. We need to secure that data and, and, and general all the, the login stuff. So this is why we have two completely different perspectives.
Just when we are looking at the identities, and this is why workforce IM and Siam are in general not the same.
So what can we do to better understand c from a, from an Analyst perspective, we take a closer look to the market and we see a split in, in two big market segments. So one half of it is the SIAM part that is mainly focusing on what I basically just said on the, on the operations and performance part. So we are talking about registration, we are talking about social federation, we are talking about authentication and consent and profile management.
So all, all of the stuff that is more in the direction of operations. And for as while we have the second market, the the second market segment that is about the customer data and experience part, we have a couple solutions there. The customer data platform, we have customer relationship management, we have the data management platform and the marketing automation solutions. All of that is, is mainly focusing on the customer journey, the whole experience part. But from an, from an organizational point of view.
So in in general, when we are seeing full grown SIAM services in organization and organizations, we see a combination of of, of both market segments, even though the features belong to one segment each.
So what are the objectives of a SIAM concept in general, they have pretty much the same idea behind that, the same objectives behind both market segments being combined to deliver. So the idea is to build customer experience with improved personalization. It is focused on reducing the drop off rates, either in onboarding or the churn rates for existing customers and consumers.
So in a nutshell, it's basically all about keeping the customer happy and with you as long as possible so that he or she is using your service. And with that you can create a mutual relationship, a good relationship for both sides. The organization as well as the customer or the sea identity in general. Not just the customer but also consumers and citizens. It doesn't depend which one.
Again, going back to the research part, I mean we are an Analyst company. We have market insights and we have split those, those market segments. And we have rated it based on eight criteria. And what you can see on the left side is the SIAM part.
As I said, it's more operational, it's IDP services, authentication and so on. So those eight criteria, onboarding, identity assurance, account, take over protection, authentication, content management, iot device management and identity analytics are all for create for for, yeah, delivering the operations part, the service to the customer.
It, it's not really about the customer journey journey at all while the CDP part, so identity resolution, segmentation, profiling, activation, automation, analytics and reporting and privacy and compliance management is about the customer journey and learning more about the customer to, to serve the customer, to give them a better experience. And what we can also see here in the middle, on the left side, we have marketing and integration on the right side, the connectors, that is the part where both market segments get linked.
So when you take a closer look on our research, this is the part where you link Siam and CDP to an extended definition of Siam.
So ultimately let, let's take a closer look on the SIAM trends. As you can see, there's a lot going on in the market. Warwick just said that we have seen other presentation talking about Siam, that there is stuff moving, stuff developing organizations get more and more aware of that. So what are the most important SIAM trends? And it depends a little bit on, on which source you are looking, if you look at the top three, top five trends.
But, but they are usually coming to the more or less same conclusion. I've listed here a couple trends more than just three or five to give you a better idea. So let me walk you through it. Starting with f fraud reduction intelligence platforms. This is a capability that we see under the top three SIAM trends. And it's all about protecting your C identities. So for different kind of attacks. So major fraud reduction techniques are identity proofing, credential intelligence, device intelligence, user behavior analytics, behavioral biometrics and bot detection. So those are trip capabilities.
And there's also a, an an own market for those techniques. So who, whoever is interested in that, we have research on our website for that.
So what I just mentioned is also identity proofing. We have that here as an, as an own trend listed because that is a very important one. There's lots going, a lot of stuff going on around the identity. So not just identity proofing, but also the decentralized identity part. So the identity is moving much more into the important space.
It, it is becoming much more important to defend the identity as central key. We are learning that also for zero trust. This is also seen on the consumer facing or the C identity market. Talking about data privacy.
I've, I've, I've raised that earlier. To earn trust, you need to make sure the, the sea identities credentials and, and every everything else, the personal data is protected. So this is definitely also an important trend to make sure that this trust is built.
What we, what else can we see? We have identity and personal device matching. So this is also partially covered by FRI, but it's, but, but it's an important step when we are talking about zero trust for consumers.
And an important thing that we are seeing is all, all the authentication part here on the upper right side, risk-based auth authentication, passwordless experience.
So what we are trying to achieve in the workforce market, we are doing that as well in the consumer market because as we have heard at the beginning, the better the user experience are, the better the login and registration processes are. The more consumers I'm able to catch, right? And actual customers are using my services, they are paying for my services. So this is where I get them. And we all know that thinking about that, an easier authentication, a seamless experience. I mean it's, it's better, right? We all like a seamless experience to, to create that.
We have also integration interoperability. So we are experiencing that. We get more APIs, API first approaches for, to, to create that kind of seamless experience.
And last but not least, we have this one here, differentiation into b2c, b2b and B2B to C and this is an interesting one when you're talking to managers, they always call it B2C consumers, Siam, it's always b2c, but it is getting much more complicated. Recently when we are looking at the market, they're also different kinds of consumers and partners sometimes all covered by b2c.
So it, there's a huge difference, difference in b2c. So you are selling directly to your consumers or b2b. So you are selling to other companies or if you are taking a look at B2B two C, there's also a difference because you are selling to other companies that are reselling your goods to your consumers and all of them are treat, I mean you have to treat them differently because customers, so B2B is, is different to and consumers, right? So that might not be the right solution to do everything with a si with a same siam, with the same capabilities and the functional features.
There are probably different requirements for different kinds of delivery models.
So key takeaways for my presentation. First one is consumers don't tolerate bad user experience. We remember that up to 77%. I mean when I think about the 77% have, have you ever dropped off a service in the, in the login process? I mean I'm, I'm definitely part of that 77%. I mean you, you can answer that for yourself, but I could imagine that you are feeling the same here. Second Simon workforce I am are completely different. Treat them as such.
That's, that's what we learned pretty much after that you are not able to, to give the same experience to consumers but the workforce IAM then you can, could with a SIAM solution that is focusing really on the sea identities. So here the third and the fourth bullet, I'm taking them both as a same take as one take the definition of Siam extended by the cdp. However they there, those are two markets, two different markets and they have their own capabilities, they have their own trends, but in, in the reality they belong together.
They have their own goals, their own objectives in a certain way, but they are serving the same if you are implementing them. And last but not least, those Siam trends I was just talking about, they are a reaction to an increasing complexity and also increasing requirements from the market. So with that, I would like to conclude my presentation and thank you for your attention.
Thanks. Thanks very much Phillip. I think the, one of the most striking stats was that 70 plus percent fall off.
I think that, you know, if people had any doubt that they needed a good CIM system, that's a good statistic. I ought to have mentioned that we would like to encourage as much participation from you, the audience, both here and online. So please put your questions into the app so that I can put them to the presenters. But also those of you are in the room have the opportunity of asking a question live.
So anyone, for anyone
Phillip, where do we see things like ad fraud, first party ecosystems and pre customer logins? In terms of CIM trends, are they sort of on the horizon? Are they soft already? How would you look at those three?
So that was pre customer login,
Not entirely sure about that, if that is already solved. I think it's not one of the major trends though. I mean the major trends, if you look at a, the top three or or four trends for Siam, it it's more about the identity, identity proofing the authentication part.
This is, this is where it could be probably, but we, we are seeing more there. The, the passwordless and the risk-based aspect of that. And at the trip would be the, in the top three as well. So I would not, that would not cover that as well.
So it, it's, it is definitely a topic, but I, I don't count that to the, to the top major trends. I, I would say hope that answers the question. Okay.
Okay. Is there any one quick question or No, none in the room. So once again, round of applause for Dr. Phillip Messerschmidt.
Thank you.
