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In recent years, customer ID integration has been gaining attention, particularly in the retail industry. This is because centralizing customer data that is dispersed across multiple services and systems can lead to various benefits such as improved operational efficiency and more accurate marketing.
"We want to integrate customer IDs, but don’t know how."
"We don’t know where to start."
This article is for people like you. We will clearly explain an overview of customer ID integration, methods, and the integration process. In the latter half, we will also introduce successful case studies of customer ID integration. If you're considering customer ID integration, this article will be a helpful reference.
Akira Shimazoe
CEO of Solashi Japan LLC. Engaged in the development and operation of internal systems at Suntory. Founded Yper Inc., serving as CTO and CPO, contributing to product launch and growth.
What is Customer ID Integration?
Customer ID integration is an initiative by companies to centralize customer data managed across multiple systems and services. Through ID integration, previously scattered customer information is consolidated into a single ID, enabling comprehensive customer management.
For example, integrating customer information from an online store and a physical store enables a company to grasp purchase history and preferences across all channels. This improves customer data management efficiency and makes it possible to create a more precise customer profile.
As a result, it leads to the development of accurate marketing strategies and fine-tuned customer service, ultimately increasing customer satisfaction. It also benefits customers by reducing the burden of managing multiple IDs and offering a consistent service experience.
Why is Customer ID Integration Important?
Customer ID integration offers the following benefits:
- Because it leads to improved customer satisfaction
- Because it improves operational efficiency
- Because it enhances marketing accuracy
By examining these benefits in detail, the importance of customer ID integration becomes even clearer. Let’s take a closer look at each reason below.
Because it leads to improved customer satisfaction
Customer ID integration significantly enhances the customer experience. In the past, customers needed to create and manage separate IDs for each service they used. This complexity often led to dissatisfaction and confusion.
With ID integration, customers can access multiple services using a single account. This reduces the hassle of logging in and enables smoother transitions between services.
As a result, convenience increases, barriers to using services are lowered, and customer satisfaction improves.
Because it improves operational efficiency
Customer ID integration greatly improves a company’s operational efficiency. It is especially effective for companies with multiple brands, products, or services across various channels.
Without ID integration, understanding a customer’s full profile requires cross-referencing information across multiple systems. This takes a massive amount of time and effort. By integrating IDs, this issue is resolved and customer information is centralized.
As a result, data searches and updates are simplified, and management costs can be significantly reduced.
Because it enhances marketing accuracy
Customer ID integration dramatically enhances the quality of marketing activities. When each service manages customers with different IDs, the data becomes fragmented, and only partial customer information can be obtained.
By integrating IDs, this information is centralized, and you can grasp the complete picture of the customer. For instance, it becomes possible to link online browsing history with in-store purchasing behavior.
Based on this comprehensive customer profile, you can accurately analyze individual needs and behavior patterns. As a result, customer journey optimization and highly personalized service delivery can be achieved.
How to Integrate Customer IDs
There are mainly two methods for customer ID integration: “integration done by the company” and “integration done by the customer.”
Each method has pros and cons, and it is important to choose the right one depending on the company’s situation and objectives. Let’s take a closer look at each method.
Integration by the Company
The first method is for the company to perform the integration. The company utilizes the customer data it owns to identify and merge accounts belonging to the same individual. For example, it may match accounts based on email addresses or phone numbers.
The biggest advantage of this method is that it does not require any action from the customer. Since the company manages the schedule, integration can be completed relatively quickly.
However, this method requires a significant investment of internal resources and tends to result in high labor costs. Additionally, if data formats and management methods differ between services, aligning the data may take more time and effort than expected.
Recently, more companies are utilizing AI for ID integration. By leveraging such technologies, you can reduce labor costs while achieving more accurate and faster customer ID integration.
Related article: Utilize AI for Business Automation! Specific Tools and Use Cases - Solashi
Integration by the Customer
The other method is to have customers register a new ID themselves and link it to their existing IDs.
The biggest advantage of this method is that it reduces the workload on the company. Since customers actively perform the integration, the resource investment from the company is minimized. Additionally, because the customer manages the process, accuracy also improves.
However, this method also has challenges. The integration process may be seen as burdensome by customers, causing some users to stop using the service. Also, since the integration progresses at the customer’s pace, it’s harder for the company to manage progress, and it may take more time than expected to complete the overall integration. Therefore, providing incentives and building a strong support system are crucial.
Steps to Integrate Customer IDs
Customer ID integration needs to be carried out systematically and in stages. Here, we introduce the basic flow of ID integration.
- Set goals
- Analyze current situation
- Develop basic policies
- System design and development
- Data migration
These customer ID integration processes require advanced IT skills and deep business knowledge. For many companies, it is difficult to carry out this complex process using internal resources alone. That’s why working with a partner that has specialized expertise is an effective option.
Our company, Solashi Co., Ltd, has not only a team of engineers well-versed in the latest technologies but also numerous consultants who understand business strategy and can make appropriate proposals. Based in Vietnam, we can offer high-quality services at competitive prices.
We propose phased approaches and flexible development methods tailored to your business goals. Please feel free to contact us for a consultation.
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1. Set Goals
First, clarify the goals of ID integration. Set specific goals such as "enhancing security," "improving customer satisfaction," or "reducing operational costs."
Clear goal setting makes the project's purpose apparent and facilitates smooth decision-making at each stage. It also provides metrics for measuring final outcomes.
2. Current Situation Analysis
Next, conduct a detailed analysis of the existing ID systems and management methods. At this stage, investigate the following points:
- Structure of the current system
- Data format
- Security level
- Operational flow
- Differences in ID management methods across systems
- Data quality
This investigation helps identify the overall picture and challenges of the current system. It also reveals areas needing improvement. The analysis results will support the formulation of the ID integration strategy.
3. Formulation of Basic Policies
Establish specific rules for the integrated ID. Decide on operational details such as how IDs are created, personal information required at registration, and procedures for registration and authentication.
Since a common ID will be used across multiple services, it is necessary to formulate unified rules considering the characteristics and requirements of each service. Also, ensure consistency with privacy and security policies.
4. System Design and Development
Once the basic policy for the integrated ID is determined, proceed to actual system development. At this stage, design and develop the new ID management system.
First, determine the overall system architecture. The following three points are especially important:
- Security: Can customer information be securely protected?
- Scalability: Can it accommodate future increases in users?
- Usability: Is it easy for customers to use?
It is also important to design the system for smooth integration with existing systems. For example, allow for gradual integration between the online shop and physical store systems.
During development, conduct thorough testing to confirm the system's security and ease of use. In some cases, existing systems may need to be modified to align with the new ID system.
By carefully progressing through this process, a user-friendly and easily manageable ID integration system can be realized for both customers and businesses.
5. Data Migration
Finally, execute the actual ID integration. If your company handles the migration, follow the pre-established plan carefully. If customer cooperation is required, ensure proper notifications, set up guidelines, and provide a support contact point.
To minimize impact on customers, it is important to reduce service downtime during migration as much as possible. Also, create detailed guidelines and set up a dedicated support contact to facilitate a smooth transition. With adequate preparation and careful execution, safe and efficient ID integration can be achieved.
Successful Cases of Customer ID Integration
Below are examples of successful customer ID integrations. They summarize specific integration contents and effects, so if you're considering ID integration, take these cases as references.
- Lotte Co., Ltd.
- Kao Corporation
Lotte Co., Ltd.
Major confectionery manufacturer A carried out a customer ID integration project to enhance customer engagement. Previously, customer management was handled separately for each service such as e-commerce sites and membership services. They aimed to accelerate data-driven marketing through integration.
The project centralized data around customer IDs, enabling marketers to utilize data without directly accessing personal information. Emphasis was placed on automated integration and creating a system that anyone could use easily.
As a result, a data integration platform centered on customer IDs was realized. Going forward, they plan to use this platform for more precise customer communication and to develop marketing that bridges real and digital experiences.
Major Daily Goods Manufacturer
Major daily goods manufacturer B launched a new digital platform to enhance engagement with customers. This platform offers personalized experiences through four core functions: "Learn," "Experience," "Purchase," and "Create."
Integrating customer IDs, previously managed individually by each brand, was a major challenge. They introduced the latest customer data management solutions and built an ID integration platform. This enabled the use of multiple services with a single ID and flexible adaptation to future feature expansions.
In the future, they plan to expand services including product recommendation features and SNS integration. They aim to offer forward-thinking services based on a deep understanding of customer data.
For Customer ID Integration, Contact Solashi
This article explained the importance and method of customer ID integration. Integrating customer IDs brings many benefits such as improved operational efficiency and marketing accuracy. However, the integration process requires expertise and experience.
To succeed in ID integration, it’s essential to have a partner with the right knowledge and know-how. Choose a development company that not only has technical skills but also can identify challenges through appropriate hearings and propose suitable development solutions.
For customer ID integration, trust the cost-effective Vietnamese system development company "Solashi Co., Ltd". They provide high-quality system development while keeping costs low.
Our company has several Japanese project managers familiar with the business. So even if it’s your first time outsourcing development overseas, you can entrust us with confidence. You’re welcome to consult us even if your requirements are not fully defined yet. Feel free to contact us anytime.
Akira Shimazoe
Representative of Solashi Japan LLC. Born in April 1989 in Fukuoka Prefecture. Graduated from the Graduate School of Information and Mathematical Sciences at Osaka Prefecture University. Joined Suntory System Technology Co., Ltd., an IT subsidiary of Suntory Holdings, in 2014. Broadly responsible for the development, operation, and implementation of vending machine delivery management, efficiency improvements, and sales management systems. Founded Yper Inc. in 2017, serving as CTO and CPO. Contributed to the launch and growth of the app-linked delivery bag "OKIPPA." Selected for Toyo Keizai's prestigious "Amazing Venture 100" and Forbes' "Forbes 30 Under 30 Asia 2019."
