SAP CDC: The engine behind customer identity management

SAP Customer Data Cloud: The foundation for a 360° customer view

SAP Customer Data Cloud (formerly known as Gigya) is the CIAM solution within the SAP Customer Experience suite. CDC offers a comprehensive set of functionalities for collecting, managing, and securing customer identities and data.

The main components include centralized identity management, consent management, self-service capabilities, and fraud prevention. This combination makes it possible to securely collect customer data, transparently manage permissions, and simultaneously provide seamless, personalized experiences.

Want to know more about the technical details and functions of SAP CDC? Check out our CDC specialist page for a comprehensive explanation.

Why is CIAM crucial today?

Digital transformation has fundamentally changed customer expectations. At the same time, privacy regulations are becoming increasingly stringent. These developments make a robust CIAM strategy more important than ever.

The following scenarios illustrate why a good CIAM structure is indispensable today:

Omnichannel consistency

A customer who logs in via social media, later switches to the mobile app, and finally completes a purchase on your website, expects a consistent, personalized experience. Without an integrated CIAM system, these interactions are treated as separate actions by different users, leading to fragmented customer insights and experiences.

Privacy preferences and compliance

With the increase in privacy regulations such as GDPR, as well as technical developments like the phasing out of third-party cookies, it is becoming increasingly important to collect first-party data in a transparent and compliant manner. A robust CIAM system makes it possible to manage explicit consent and track preferences.

Personalization at scale

Today's customers expect brands to know them and provide only relevant, personalized experiences. To make this possible, you need reliable, up-to-date identity data that is accessible to various systems within your organization.

In practice: B2B vs. B2C implementations

The implementation of a CIAM solution such as SAP CDC differs significantly between B2B and B2C environments, especially due to the different expectations of end users and the complexity of organizational structures. Both contexts require a careful balance between security, compliance, and user experience, but with different priorities and implementation strategies.

B2B-context and challenges

In a B2B environment, identity management often revolves around complex organizational structures and hierarchical access rights. Think of the different layers of approval in a purchasing process, or the rights of employees or customers within online portals.

Typical challenges:

• Management of organizational hierarchies and departments
• Different roles and authorization levels within a single customer organization
• Delegated user management (customer organizations often want to determine who gets access)
• Integration with business systems and enterprise applications

End customer expectations in B2B:

• Efficient, streamlined processes without unnecessary steps
• Ability to manage users and rights themselves
• Consistent experience across different business applications
• Reliability and security as absolute priorities

What does it deliver for B2B? A well-implemented CIAM system in a B2B context primarily results in significant efficiency improvements, reduced administrative burdens, and a stronger customer relationship through improved service levels.

B2C-context and challenges

In a B2C environment, the focus is much more on user-friendliness, quick registration, and a seamless experience across different channels. Here, it is crucial to minimize friction while collecting sufficient data to enable personalization.

Typical challenges:

• Balancing ease of use and security
• Managing permissions and preferences at scale
• Consistent identity across websites, apps, and physical touchpoints
• Navigating different privacy regulations in various regions

End customer expectations in B2C:

• Quick, effortless registration and login processes (such as social media login)
• Personal, relevant experiences that build upon previous interactions
• Transparent control over how personal data is used
• Seamless transitions between different channels and devices

What does it deliver for B2C? An effective CIAM implementation in B2C leads to higher conversion rates, better customer retention, and more opportunities for personalized marketing and service.

Implementation: best practices

Start small but think big

CDC implementations that try to cover all use cases immediately often get stuck in complexity and scope creep. A phased approach where you start with one critical touchpoint, such as the web shop or customer portal, delivers results faster and provides valuable insights for later expansions. An effective approach is to start with the most impactful customer journey and optimize related identity processes before expanding to other channels.

Involve stakeholders from both IT and business from the beginning

CIAM projects that are only driven by IT often miss the business context and end-user perspective. Conversely, business-driven initiatives may overlook technical limitations. By having IT and business at the table together, you ensure that you choose a phased data collection that is optimal from both technical and customer perspectives.

Design for privacy from the start

Retrofitting privacy measures is not only inefficient but also risky in the current compliance landscape. By integrating privacy into your CIAM strategy from the beginning, you prevent costly reimplementations when legislation changes. In practical terms, this means separating identifying data from behavioral data, implementing automatic deletion procedures, and designing user-friendly consent journeys.

Invest in data governance

Without clear agreements on data ownership, quality standards, and processing, even the best CIAM implementation can lead to inconsistent customer data. This prevents multiple departments or parties from updating customer profiles according to their own standards, which leads to conflicting data. By setting up a governance framework with clear ownership and quality controls in advance, customer data remains valuable and reliable.

The impact: Benefits for all stakeholders

For C-level & Business

• Increased revenue through improved conversion rates and higher customer satisfaction
• Reduced operational costs through streamlined processes and less management effort
• Stronger brand loyalty through personalized interactions
• Compliance assurance and reduced risks around data protection

For IT decision makers

• Simplified architecture through centralization of identity management
• Improved security and fewer vulnerabilities
• Scalability to support growth without performance issues
• Lower maintenance costs through standardized processes

For Marketing & CX teams

• Richer customer profiles for better segmentation and targeting
• Seamless omnichannel experiences through consistent identity data
• Detailed insights into customer behavior and preferences
• Flexibility in how customer data is collected and deployed

For the end customer

• Easier interaction via single sign-on and simplified authentication
• Higher degree of control over personal data and preferences
• More relevant experiences thanks to intelligent personalization
• Increased trust through transparent data management