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Data Privacy

Data Security

Capillary’s Secured Identity Management For Your Loyalty Marketing Programs

With multiple devices, online and offline, identity management is critical to build a 360 view of the customer. Read on to learn more about Capillary's secured Identity Management technology.


Jubin Mehta

3 Min Read

January 10, 2023

Data Privacy, Security, and Identity Management have become increasingly important in today’s digital world. Customers’ expectations have gone up and at the same time, customers have become more private about their data. Plus, with data laws (GDPR, LGPD, ePrivacy, and others) becoming more stringent, it seems like everything is stacked against the marketer. But if one looks at this objectively, the fundamentals remain the same. 


Customers are looking for a great experience wrapped around a product/service and if a brand provides that, the chances of a customer remaining loyal to a brand are much higher. And this is exactly what a brand wants. To achieve this, brands need to be mindful of the data privacy laws of the region and use that to arrive at a seamless experience along with building flexibility within the system so that processes can change.  


What is Identity? And components of Identity Management


Firstly, we need to understand what we mean by identity and its components. Identity can be looked at as a sliding scale of attributes varying from person level (individually addressable) to non-person level (not individually addressable). 

Types of Identities

There are various kinds of data: zero-party data, first-party data, second-party data, and third-party data. The first three of them would fall under individually addressable data and then there are- cohort & segment-based audiences and contextual audiences. 


An advanced CDP (consumer data platform) like Capillary’s CDP+ is a secure way to resolve identities and help marketers get the best out of their customer data. But before we get there, there are several factors with identity management that have to be considered in the context of loyalty management software.


Challenges with identity and customer data for a loyalty marketer

Identity Management Challenges

Ensuring the accuracy of customer data: It’s essential to ensure that customer data is accurate and up to date to provide a seamless experience for customers and prevent issues such as incorrect points balances or rewards.


Maintaining data privacy and security: Protecting customer data is crucial in order to maintain trust and prevent data breaches. This includes implementing measures such as secure authentication and access controls.


Managing multiple customer touchpoints: Customers may interact with a company through multiple channels, such as in-store, online, and over the phone. It’s important to be able to seamlessly connect these interactions and maintain a consistent view of the customer across all channels.


Dealing with incomplete or incorrect data: It’s not uncommon for customers to provide incomplete or inaccurate information, either intentionally or unintentionally. This can make it difficult to accurately identify and track customers, leading to issues with personalized communication and marketing efforts.


Integration with other systems: In order to provide a comprehensive view of the customer, loyalty management software may need to be integrated with other systems such as financial, marketing, or HR systems. This can present challenges in terms of data compatibility and security.


How can a CDP or software help with identity management


Now, when you’re selecting a platform to run efficient and secured loyalty programs, here are some things that a platform can help you with. 


Implementing secure authentication: This can include methods such as multi-factor authentication, which requires users to provide additional proof of identity beyond just a username and password.


Encrypt sensitive data: Encrypting data makes it unreadable to anyone who does not have the proper decryption key, protecting it from being accessed by unauthorized parties.


Use secure servers: Storing customer data on secure servers, such as those that use firewalls and intrusion detection systems, can help prevent unauthorized access.


Regularly update security measures: It’s important to keep security measures up to date in order to stay ahead of new threats. This can include installing software updates and patches as they become available.


Educate users: Providing users with information on how to protect their own identity, such as using strong passwords and being cautious of phishing attacks, can help prevent identity theft.


Monitor for suspicious activity: Regularly monitoring for suspicious activity, such as unexpected login attempts or unusual data access, can help detect potential identity theft and allow for quick response. (read about Capillary’s Fraud Detection for loyalty programs)


Capillary’s Product Suite comes with Built-In Identity Resolution

Capillary's CDP+

At Capillary, the heart of the platform is CDP+ where all consumer data securely resides. On top of CDP+, our flagship product Loyalty+ helps marketers execute some of the best loyalty programs (250+ brands use Loyalty+ to reach 875mn+ customers). Because to deliver a successful marketing program, a customer data platform alone is not sufficient. All this data has to be meaningfully resolved to deliver a highly personalized experience. 


With Capillary’s technology, marketers can build a unified customer profile across all touchpoints by connecting identities, engagement data, customer orders, loyalty, marketing journeys, and privacy management. Capillary uses advanced resolution capabilities like fuzzy matching to reconcile identities through standard (common) ID to build unified profiles. 


With these unified profiles, it becomes possible to not just make 1-1 relationships possible but deliver a true “1-You” experience where each experience is tailored for that particular customer in their context. 




People also ask   


1.How does secured identity management enhance loyalty programs?

Secured identity management enhances loyalty programs by protecting customer data, ensuring secure transactions, and building trust with customers, which leads to increased participation and engagement in loyalty programs.


2.What are the best practices for integrating secured identity management into loyalty programs?

Best practices for integrating secured identity management into loyalty programs include implementing robust authentication methods, encrypting customer data, and regularly updating security protocols to prevent breaches.


3.Why is identity management important for customer loyalty?

Identity management is important for customer loyalty as it ensures the protection of sensitive information, fosters trust between the brand and customers, and provides a seamless and secure user experience, encouraging repeat business.


4.How can businesses leverage secured identity management to boost customer loyalty?

Businesses can leverage secured identity management to boost customer loyalty by providing secure and personalized customer interactions, preventing fraud, and enhancing the overall customer experience through reliable and secure services.


5.What technologies are used in secured identity management for loyalty programs?

Technologies used in secured identity management for loyalty programs include multi-factor authentication, biometric verification, blockchain for data security, and AI-driven fraud detection systems to safeguard customer information.


Jubin Mehta

Jubin Mehta is the Associate Director of Marketing at Capillary Technologies. He is a full stack marketer with 10+ years of experience as a tech journalist and B2B SaaS marketer. Also a meditation instructor, he is a proponent of non-dual philosophy. He can be reached out on Twitter @jub_in.

Aauthor Name

Jubin Mehta

Jubin Mehta is the Associate Director of Marketing at Capillary Technologies. He is a full stack marketer with 10+ years of experience as a tech journalist and B2B SaaS marketer. Also a meditation instructor, he is a proponent of non-dual philosophy. He can be reached out on Twitter @jub_in.

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