Authentication is becoming an increasingly important part of doing business. It impacts not only the economy of a company, but also the customer relationship. Furthermore, authentication also plays an unexpected role in the transition to sustainability.
Authentication and counterfeiting
Counterfeiting is a huge problem for many industries, especially luxury brands. According to the Organization for Security and Cooperation in Europe (OSCE) up to 10% of the total global trade is from counterfeit goods, with the largest category being fashion.
Fortunately, product authentication is a powerful tool to fight it. We see it firsthand: in 2021 alone, brands using Certilogo authentication solutions intercepted €36m worth of counterfeit products before customers bought them, thus enabling them to recover these stolen sales.
Today, technology makes product authentication easy and immediate. Thanks to QR codes and NFC tags, a common smartphone is enough to immediately know if a product is original or fake, or find out more about the entire supply chain.
Trust and customer experience
Traceability and brand transparency are excellent drivers of brand loyalty.
A customer who can access information on the product and related content will feel more involved in the company's philosophy, more empowered, and, above all, more confident about how they are spending their money.
All this leads to greater trust in the brand which, in turn, leads to loyalty. Yet customer loyalty is something that companies should nurture over time. To do so, they need to offer a positive customer experience.
The keyword here is engagement.
Customer engagement is the ability to connect with the customer, understand their needs, and offer products, services, and content that goes beyond their expectations. It also means starting a conversation with them. Today, thanks to social media, push notifications, and other technologies, companies can speak directly to customers. They can ask questions, propose surveys, collect feedback and find out what consumers really think. On the other hand, customers can write reviews, ask questions, and create content. It is a reciprocal exchange that brings many benefits to both. Indeed, a study by Bain&Company showed that companies that excel in the customer experience grow revenues 4%–8% above their market.
How authentication helps a company improve its customer experience:
- it supports trust,
- it adds value to the product and empowers exclusivity,
- it enriches the user experience,
- it helps to start conversations and collect feedback,
- it helps to know customers better, by collecting data.