The impact on online advertising
In the world of online advertising, third-party cookie tracking has been the go-to method for collecting user data for decades. However, in recent years, the use of third-party cookies has been widely criticised by internet users, privacy activists, and legislators. As public opinion shifted, there was a significant increase in the use and demand for ad blockers specifically designed to block cookies. Forcing third-party cookies to disappear.
The trend towards greater privacy protection has only accelerated since then, moving towards a first-party data approach. The rise of self-sovereign identity (SSI) will further accelerate this trend, changing the online advertising world as we know it.
Empowering individuals and reshaping the data economy
Self-sovereign identity is a decentralised approach to identity management that gives individuals full control over their personal data. With SSI, individuals have the power to choose what data they share and with whom, which means that they can prevent third-party data collectors from accessing their data. In essence, SSI would herald the end of the data economy as we know it today.
Building trust and transparency with customers
SSI will further cement the importance of these strategies, allowing companies to build more meaningful relationships with their customers based on trust and transparency.
The rise of self-sovereign identity will reshape the online advertising world in ways we can't fully predict yet. However, one thing is certain: SSI will give individuals greater control over their personal data and force advertisers to find new ways to connect with their audiences.
While this change may be challenging for some, it ultimately represents a positive shift towards a more privacy-minded and user-centric online ecosystem. SSI will enable more accurate and reliable data for advertisers. It will create new opportunities, allowing them to make more informed decisions and deliver more personalised experiences to their customers.
There are countless use cases in which companies can leverage SSI to reap the benefits of this new approach to identity management. From simplifying verification processes to co-creating with customers, SSI offers a range of exciting possibilities for businesses looking to stay ahead of the curve.
Requesting accurate data
A straightforward use case for SSI is online age verification for activities such as online lotteries. Without SSI, customers are often required to upload sensitive identification documents to verify their age. However, with SSI, customers can verify their age without exposing their entire identity on the internet. This increases trust and privacy for customers while also ensuring that the lottery has access to accurate and verifiable data. Overall, SSI simplifies the verification process and improves privacy protection for users.
Another example of how SSI can simplify the verification process is in cases where a company wants to offer targeted discounts or benefits to specific groups of people. For instance, a company might want to offer a student discount, and SSI can enable students to prove their student status without having to disclose their entire student profile. This means that students can access the discount without compromising their personal information or privacy, while the company can still verify the student status accurately and securely.
By streamlining the verification process and minimising the personal data required, SSI creates a win-win situation for both users and companies.
Create real brand ambassadors by presenting a gamified step-by-step plan to customers. Customers could earn points by completing these steps, and upon completing a level, they could unlock several benefits either within or outside the company. To prove that they have completed the game, a third-party company could easily verify this by sending a request to the customer. With SSI, customers can maintain control over their personal data while still being able to prove their achievements and unlock rewards. This incentivises customers to engage more with the brand and fosters brand loyalty, while also respecting their privacy and data ownership. Ultimately, SSI can create a more transparent and trustworthy relationship between brands and their customers.
Another compelling use case of Self-Sovereign Identity (SSI) is the facilitation of co-creation through the establishment of a Decentralised Autonomous Organisation (DAO). By leveraging the power of SSI and DAOs, companies can empower their customers to actively participate in decision-making processes, leading to enhanced collaboration and a more customer-centric approach.
A DAO is a digital organisation that operates through smart contracts on a blockchain, allowing participants to collectively manage and govern the organisation.
Through a DAO, customers can contribute their ideas, vote on proposals, and even allocate resources based on their preferences. This empowers customers to co-create with companies, fostering a sense of ownership and involvement in shaping the future of the brand. With the transparency and immutability of blockchain technology, the decision-making process becomes more accountable and trustworthy.
By leveraging DAOs within the SSI ecosystem, businesses can tap into the collective intelligence of their customer base. Customers' active participation and voting rights enable them to express their preferences and desires directly, providing valuable insights for businesses. This direct feedback loop can inform future strategies, product development, and service offerings, ensuring a more customer-centric approach.
Moreover, the integration of DAOs with SSI can facilitate the formation of communities around brands. Customers can connect with each other, share ideas, and collaborate on initiatives through the decentralised platform. This fosters a sense of community and inclusion, strengthening the bond between customers and the brand. By creating a more democratic and engaging customer experience, companies can build a loyal customer base that feels valued and heard. SSI can make this possible by verifying that each customer has only one vote, ensuring fairness and transparency in the voting process.
Empowering companies for future success
As we dive into the fascinating world of SSI and its diverse use cases, it's crucial for companies to remember the transformative power and opportunities that it brings to the table. Let's recap the key takeaways that businesses need to keep in mind as they navigate the ever-evolving digital landscape:
- Long-term durable replacement for cookies: In an era where cookies are fading away, SSI emerges as a robust solution. It provides a secure and privacy-enhancing alternative for businesses to gather and manage customer data. With SSI, companies can establish trust and build meaningful relationships with their customers without compromising privacy. By embracing SSI, organisations can navigate the changing data landscape and ensure long-term success in personalised marketing and customer engagement.
- New cross-brand opportunities: SSI unlocks a world of cross-brand collaboration and partnership possibilities. By leveraging decentralised identity solutions, companies can seamlessly collaborate and share customer data in a secure and controlled manner. This opens up avenues for innovative co-creation, joint marketing initiatives, and personalised offerings that transcend traditional boundaries. Embracing SSI allows companies to tap into new market segments, amplify their brand reach, and create synergistic partnerships that drive mutual growth.
- The first step to the metaverse: As the concept of the metaverse gains traction, SSI becomes a critical foundation for its realisation. SSI provides individuals with portable and interoperable digital identities that can seamlessly traverse the digital worlds, online platforms, and physical spaces. By adopting SSI, companies position themselves at the forefront of the metaverse revolution, ready to leverage its immersive and interconnected opportunities. This strategic move sets the stage for enhanced customer experiences and a seamless blend of physical and digital interactions.
- New ways to engage and reward clients: SSI empowers companies to reinvent customer engagement by offering personalised and incentivised experiences. With SSI-enabled digital identities, businesses can tailor their offerings, rewards, and incentives based on verified customer data. This fosters a sense of loyalty, belonging, and active participation. Through SSI, companies can create vibrant communities, gamified experiences, and loyalty programs that resonate with their customers' values and aspirations.
The end is near! Of the unscrupulous data marketeer, that is.
Fortunately, there are other ways to achieve customer excellence. In our 5-part limited newsletter, we’ll introduce you to the basics of a privacy-first data strategy, so you can create compelling customer experiences without being a creep.Your journey to privacy paradise starts here.