2017 Using Digital Identity To Drive Personalization User Experience and Monetization
2017 Using Digital Identity To Drive Personalization User Experience and Monetization
Doug Fantuzzi
Vice President – Amdocs Media & Entertainment Solutions
185 Hudson St.
Jersey City, NJ 07311
240-751-5089
[email protected]
Communications Service Providers (CSPs), which for the purposes of this paper also includes Multi-
System Operators (MSOs) and cable operators, typically manage their relationships and interactions
through a physical street address without much understanding of individualized usage. As an example for
cable operators, a single address would have all or some of the family members watching the same TV in
the living room or sharing the same broadband connectivity, with the operator not knowing which family
member actually interacted with the service. But with the evolution of digital TV and personalized
connected devices, each member of the family can watch TV or connect to digital applications via the
internet using their own personal or shared device, such as a set-top box, a game console, a streaming
media stick, or a tablet.
Today’s viewers expect a more personalized video viewing experience. MSOs and cable operators need
to implement capabilities to better understand who the users are in order to provide smarter personalized
experiences– for example, knowing the user’s digital video recording (DVR) history, favorite channels,
preferred genres, favorite actors and actresses, or the next episode they’ve queued up to watch. All of
this contributes to a more satisfied audience.
The transformation from a CSP to a DSP providing personalized digital experiences will require a change
in the way CSPs engage their customers as well as their business partners. Every video or broadband
interaction, promotion, trailer, advertisement, landing page etc. should be captured and matched to an
individual user. Personalization eliminates the guesswork. It “unbundles the bundle” and opens the door
to a wide variety of futuristic service offerings and business models. But, it requires a thorough, accurate
and integrated digital user identity mechanism. This paper discusses a new digital user-identity approach
(both the challenges and monetization opportunities) that will enable CSPs to transform to DSPs by
identifying and managing their users as active individuals versus passive members of a household
address.
For cable operators, transactions are completed based on a home address, which was originally used as
the basis for feasibility and serviceability. Address-based identification is not a sustainable identification
approach for cable operators wanting to compete in a market where over-the-top (OTT) digital companies
have redefined the user experience. DSPs of the future will need to center their business around user-
specific digital IDs to improve the user experience while providing user-centric personalization, as well as
giving users the ability to self-manage their entitlements.
For the traditional SP, these different types of users are typically managed in different systems and the
same customer may have different user names. If customers are required to self-onboard for multiple
services, the SP may be unable to collect necessary information, personalize their experience and manage
their journey.
The examples below (see Figure 3) depict a variety of personalized digital experiences. Each experience
typically requires a unique registration and authentication. How will the DSP be able to capture the full
user identity and manage the user’s journey if they cannot associate the distinct interactions with a single
user? How can a DSP deliver a true, holistic personalized experience with a disconnected user journey?
On the one hand we have privacy regulations, set by the regulator. In the European Union (EU), General
Data Protection Regulation (GDPR) defines the new data regulation while in the US, the FCC is in charge
of privacy regulation. For example, Verizon was recently fined more than $1 million by the FCC for
“supercookie” tracking which captured user activity without any notification or “opt out” option.
On the other hand, what the user pays varies by digital provider and the value to the consumer is in the
“eye of the beholder.” A variety of Google services are free, but in return for a free service, a consumer is
willing to give up much more information and privacy (and perhaps a drained battery). Some people use
and rely heavily on Google services while others hardly ever use Google. Consumers pay an annual fee
for Amazon Prime, but in return Amazon provides free streaming and free delivery as part of this prime
subscription. and a different value proposition for their user community.
Consumers are constantly checking and validating the value they are receiving in return for the data they
share. If consumers acknowledge that they are getting benefits from sharing their data, they will be more
likely to provide consent for collecting and using their data for personalized purposes. As an example,
Telefonica’s “Giving the Data Back” initiative provides an entirely new edge for Telefonica to
differentiate themselves from their competitors by giving data back to their customers. One of the use
cases is enabling consumers to manage some data functions on their own, and eventually generating
royalties from partnerships or selling data to partners with customers’ permission. So Telefonica collects
and maintains consumer data but returns it to their customers for monetization purposes.
The amount consumers are willing to pay depends on the value they expect and experience in return. For
example, consumes are willing to pay a monthly fee for Netflix for the value of the commercial-free
content (on-demand and original) they can access on top of the standard cable and broadband monthly
fee. Comcast recently announced the launch of a new service for $5.99 offering users the ability to
“Watching TV” no longer means viewing content via a physical TV mounted on the wall. Each family
member can now “watch TV” using personal devices like tablets, or shared devices such as a set-top box
or a streaming media stick or within a digital application. Since viewing and internet habits differ from
person to person, it’s become critically important from a service standpoint for MSOs to understand
exactly who the user is, as well as the groups they belong to, in order to personalize the services for that
specific user and so deliver a user experience to rival or exceed those provided by OTT and other digital
service providers.
Leveraging data at the user level will enable cable operators to:
• Provide recommendations about new series and episodes
• Give consumers the option to switch between favorite channels easily
• Give consumers a more personalized DVR experience
• Give consumers the option to consume on multiple devices switching mid-session
• Create a connected user journey providing a more holistic and intimate understanding of the
individual
MSOs will also need to personalize at a group or family level in order to enable users to perform so tasks
as:
• Managing parental controls, such as the type of content a child is allowed to watch, (and during
which hours)
• Managing the amount users are allowed to spend (e.g. video on demand, gaming) from the family
or group allowance
• Enabling the user to share specific events with their friends
Big data and advanced, contextualized analytics are game changers and are absolutely required for
extracting the value out of the digital identity and user journey. However, CSPs and DSPs continue to
struggle with solving the challenge of managing massive amounts of data collected from all contributors
to the user journey in a highly structured way. DSPs will need to leverage big data in order to make
consumers feel individually valued at precisely the right moment and the right location.
• How will the user purchase the partner’s service? Will they need to register on the partner’s
portal?
• How will the user consume the service? Do they need to login to the partner’s portal?
• How will the DSP differentiate between the users?
• How will partners capture user information in order to deliver a personalized experience?
• Will the user be able to manage family/group entitlements?
Russian service provider VimpelCom recently rebranded itself Veon as part of their DSP transformation.
“We are doing two things”, explained CEO Jean Yves Charlier. “We think we have to be a great telecoms
business providing connectivity, but we also think we have got to do much more than that, and that’s
what we are focused on. We want to bring a new digital model to the industry, not just a bricks-and-
mortar model.”
The potential acquisition of Time Warner Inc., by AT&T, who once referred to themselves as “The
World’s Networking Company,” is yet another step in AT&T’s plan to become a DSP providing premium
content, advanced advertising and a variety of OTT capabilities.
Fifty percent of CSPs’ new digital services originate from partnerships and investment. The diagram
below shows possible partnerships to fulfil the needs of the digital savvy consumer.
Personal profile data is today’s advertising currency reaching across channels like mobile, web and TV as
it increases the targeting capabilities and correspondingly the advertising yields. Digital advertising is at
a point where advertisers are willing to pay a premium to service providers for subscribers’ first-party
data. Generally defined, first-party data is specific data collected by you about your audience (i.e., the
first party is “you”) as compared to third-party data which is acquired from outside resources (i.e., a third
party) and provides generic, segmented information This creates an immediate opportunity for service
providers to monetize new channels by using an enriched customer profile that combines relevant first
and third-party data for use with interactive targeted ads, which increase subscribers’ engagement and
affinity with the advertised product.
First-party data or customer profile data available to SPs is unique. It combines a variety of location,
usage and spending behavior that provides good indications about the customer’s interests and needs.
Data can be gathered ongoing from multiple platforms and interactions, and then packaged in a data
model that enables service providers to create audiences. These audiences, based on rich customer
insights, are highly sought after by brands and advertisers in the advertising ecosystem.
DSPs with properly implemented digital identity and B2B relationships will be able to go beyond regular
behavioral targeting. They will be able to access enhanced customer profiles, consisting of content,
service and user data updated in real time by multiple subsystems in a flexible, efficient, and cost-
effective way. By leveraging this information, service providers can create a high-value advertisement
inventory for themselves as well as for advertisers.
Targeted advertising is not just about offering the right product to the right person at the right time. It is
about “closing the loop” and encouraging the consumer to take action. For example – a car advertisement
which also includes directions to the nearest car dealer to the customer’s location, and which can be
accessed by the customer across multiple channels, touch points and devices.
By leveraging the digital identity of their customers, and the data collected from their activities, DSPs
can:
• Improve user experience by providing relevant ads to their customers
• Increase the value of multi-screen advertising
• Deploy a targeted ad platform with innovative third parties – the operator can license, partner, or
sell ads to the content owners and television networks
• Maximize revenues from digital advertising
• Family Sharing with Apple – family sharing makes it easy for up to six people to share apps,
iBooks, iCloud, music and more
• Netflix’s screens pricing model – pricing determines how many users can access a Netflix account
at the same time
The new bundle will definitely embrace personalized and targeted content, and for these new innovative
monetization models, the service provider needs to have information about individual users and devices.
The digital identity component of this ecosystem consists of the following attributes:
• Users should be able to port their identity using it wherever and with whoever they choose
• User preference and API standards need to be defined to support porting
• Adoption between many partners, across different industries
The digital identity component is the foundational enabler for expanding monetization opportunities. It
needs to be fully integrated with partner contract management and billing systems and enhance the DSP
household level billing to individual user billing.
Access management in many complex organizations is determined by a single sign-on (SSO) property.
3.2.3. Authorization
Once users have been authenticated by the access management system, they can use the services that are
enabled by the provider based on their authorization level. The authorization can be based either on the
role of the user or according to their individual entitlements. Roles can be provided to a group of people
and dictate their permission to access specific activities, and/or, information.
The DSP’s access management should support single sign-on standards like SAML or OpenID Connect.
If the partner does not support these standards, then integration is required and integration tools must be
put in place.
Identity management should support the data model of the entitlements, and access management should
check when a user is trying to access a resource whether that user is entitled to such an activity.
As part of the new EU security regulations (i.e. GDPR in 2018) and in the USA, users own their personal
data, and as such, the user must give their explicit consent for their data to be used for a specific service.
The consent information is stored in the user identity as part of the user profile. Access management
should restrict access to personal information according to the user’s consent.
The user ID serves as an identifier to many of the surrounding systems and connects to the mobile wallet,
BSS, partner B2B and data analytics systems.
User identity is foundational to any BSS environment including global billing and monetization engine(s).
It enables the introduction of fast time to market digital content and services, including real-time
personalized promotions and merchandising for both existing and anonymous customers. In the pre-paid
system, the user ID identifies a specific balance. In the wallet system, the user and group’s identification
will authorize who within the family is permitted to pay using the wallet. In the video system, the user
identity validates the customer’s entitlement for a content.
The user identity stores previous customer actions and connects to the analytics engine. This enables the
delivery of intelligent, contextual and personal interactions across the customer journeys with up-sell and
cross-sell opportunities by collecting and analyzing the variety of customer data available through the
provider’s own platforms as well as partner-originated data, turning it into action by predicting and
automating any customer engagement across the lifecycle. Digital identity drives higher revenues, service
uptake, loyalty, satisfaction and engagement.
The digital identity in the above solution is comprised of two main components: access management and
identity management.
The user management system stores the users, groups, locations, devices, the customer entitlements and
the user entitlements information. When a customer purchases a new service, that service is distributed to
the user management system along with the customer entitlement, devices and location information
specific to that user. The user can manage these entitlements for the family, along with the location and
devices data, by using a graphical user interface (GUI).
When a user logs in to the system, the access management GUI will invoke a series of authentication
steps which are processed according to its configuration. One of the authentication steps is to validate the
user entitlements. Once the user is authenticated, the SSO component in the access management system
uses an access token to login to any service that the user is registered, including operator services and
partner services.
But today’s TV viewers have an overabundance of content to choose from, and have come to expect a
timely, purposeful, customized experience. It will not be long before traditional TV, and for that matter
all connected digital services will be provided by our own personalized content DJ.
Transforming to a DSP requires adopting a more holistic approach to user identity, which takes into
consideration the way today’s viewers are consuming their entertainment: anytime, anywhere, on multiple
devices. In order to put the end user in the personalized driver’s seat, individual consumers will need to be
able to create and manage their own profiles. But this movement from household to individual is not
sufficient as it only addresses one of the many dimensions of a total personalized experience.
A true 360-degree personalized experience will require the DSP to deliver highly relevant experiences
across every connected device and digital channel. There are large amounts of customer digital touch
points and a wealth of data available, but it’s scattered, often non-standard and disjointed. To really
understand customers and deliver the most relevant experiences, a DSP needs to be able to stitch together
all the digital interactions and associated data sources under one digital ID in order to track the user
journey.
To enable a well-connected and contextualized user journey, DSPs must demonstrate they can be a trusted
partner. Customers are only willing to share their information if they know (1) it is being using to help
them get what they want, when they want it, (2) the information is securely maintained, and (3)
consumers can control how their data is used.
Once the digital identity ecosystem is established and embedded within the end-to-end operational
environment and the CSP has transformed to a trusted DSP, the monetization door will swing wide open,
providing access to a variety of new, innovative B2B and B2C monetization possibilities. If executed
properly with the right balance between trust and value, DSPs can enable and support blended,
contextualized, and customized experiences bridging and integrating our different day-to-day digital
interactions along with our entertainment and social experiences.
For the consumer, it will feel like they are carrying around their identity inside a digital locker which can
be plugged into their daily activities and subsequently leveraged to drive an enjoyable, finely tuned
experience. Customers will then become comfortable sharing the contents of their digital locker across
different industries to support a contextually relevant experience that reaches from their living room, to
their car, to the store while traveling with them to and while on vacation.
We are all consumers of digital services and content. As a consumer of a variety of digital services, are
you ready to move from account centricity to individual identities for your family? Are you willing to
have your digital locker full of personalized information? Are you ready to trust your identity with your
DSP? But most importantly, are you comfortable sharing your personalized journey in exchanged for
unique, effortless, meaningful digital experiences?
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