The novelty of ecommerce and digital services has officially worn off. If the pandemic made us realize anything about the way our global marketplace works, it’s that online shopping and services are now an essential part of daily life. However, as web-based markets and platforms have grown, so have customer expectations. It’s not enough to simply offer an adequate online channel. Now it has to compete for your customers’ attention.
Today’s consumers crave a seamless and effortless experience from the second they enter a webstore or open their banking app, and that experience includes logging in. Though customers are concerned about privacy and security, they are unwilling to sacrifice a seamless journey for unseen benefits. In 2022, digital CX is focused on making every part of the customer’s path smooth and fast: smoother product searches, speedy bank transfers and nearly invisible logins.
Yet nothing halts an online shopper in their tracks like an account lockout or a forgotten password. Authentication problems are the most frustrating obstacles a customer will face online, and businesses must solve them if they want to increase their revenue and competitive edge. Here are five reasons why giving customers a good first login experience can drive revenue in 2022:
#1 – Customers don’t hang around when logging in takes too long
What makes a great first impression in a digital experience? For most consumers, it’s convenience. If a product can’t be searched up, purchased and delivered right to their door with minimal fuss, consumers will happily turn to a competitor. And, while banks and other digital services don’t suffer the same flightiness in customers, their users will avoid channels that fail to meet their ease-of-use expectations.
For example, some businesses wish to drive revenue through a mobile app in addition to their website or brick-and-mortar locations. However, getting customers to adopt an app that forces them to re-register or one that funnels them through a frustrating login process can prove difficult. According to a 2020 Experian report[1], 1 out of 3 customers will abandon their online shopping carts if it takes longer than 30 seconds to complete an online transaction. Imagine trying to get these customers to download and install an app, then re-login on the new channel.
It’s simply not going to happen.
The tough reality is that consumers have the upper hand when it comes to registration and login convenience in the digital marketplace. You might already have competitive prices, great customer service and a robust selection — but those hardly matter if customers get hung up on authentication. Contemporary consumers often shop across a wide range of online marketplaces, and they’ll be comparing your channels to your competitors’. If you think that a friction-filled login process can’t hurt your revenue, think again.
#2 – Making customers feel safe encourages them to complete transactions
One of the top reasons customers abandon their online shopping carts is that they simply don’t feel secure. According to a 2022 Baymard Institute survey[2], nearly 1 in 5 customers have walked away from a webstore because they didn’t trust it with their credit card information. Customers in 2022 are more wary than ever about handing over their financial information. Data breaches, account takeovers and fraud keep them paranoid — so you need to earn their trust.
But the fear that their credit card information is at risk is not the only thing to worry about. Customers who feel like their digital identity is safe are more likely to spend time browsing, searching and selecting services and products they want to buy. In 2021, an Experian survey[3] revealed that 55% of consumers think of security as the most important aspect of their online experience. This suggests that roughly half of the customers who visit your digital channels believe that security is more important than your prices, your selection and your brand.
Smart companies in 2022 will evaluate how they show customers that shopping with them is safer than ever. It’s not enough to scatter “Norton Verified” and TrustPilot logos across your header and footer. You need to offer more login options, more security features and more control. Back in 2017, a Visa survey[4] discovered that more than half (53%) of credit cardholders would switch banks if their current one doesn’t offer biometric authentication options in the future. We can’t say for certain if they switched — but five years later, many banks have heard this demand and answered it with on-device biometric logins.
#3 – Logging in is part of a wider CX journey — and every step impacts revenue
We’ve already used this term above, but “friction” — a catchall phrase for everything that slows down a customer journey — goes beyond payment options and navigation menus. The reality is that the concept of CX friction applies to logging in, too. User friendliness is nothing new in digital experience, yet many companies forget that authentication is an irrevocable part of the process. It’s an oversight that causes many customers to suffer, and many more will walk away unless companies start taking comprehensive CX, including logins, seriously.
If customers are impeded by a high-friction login process, they might become frustrated and give up. According to research from Mastercard[5], a third of customers will simply walk away if they get locked out of their account. Similarly, a FIDO Alliance report[6] shows that 60% of consumers canceled transactions because they either could not remember their password or were being forced to create a new account and password to make the purchase.
On the other hand, customers adore businesses that give them a more seamless experience. The ability to swap between different channels without re-registering, for example, is an innovation that some companies have begun to offer. Combined with passwordless methods of authentication like physical biometrics, customers can experience the most effortless login experience — one that keeps them moving toward your products and services instead of struggling with account lockouts.
#4 – Effortless logins eliminate friction between browsing and buying
When authentication is fast and smooth, customers are more able to enjoy an uninterrupted online experience. With less frustration keeping them from transitioning from interest to purchase, they’re much more likely to browse, buy goods and services, and recommend your brand to others. Simultaneously, easier logins prevent you from losing a customer because they experience login difficulties. Instead, they’re focused on their personalized journey and the products you offer.
Problems arise when otherwise happy customers are forced to create a new account with a username and password. Instead of quickly moving on to payment, they’re forced to include yet another credential combination in their browser. It’s enough to keep some customers from following through with a purchase altogether, and companies aware of this obstacle will keep the flow uninterrupted. Customers shouldn’t need to think twice about authentication — even if it’s their very first time.
One advantage of passwordless authentication is that new customers don’t even need to create a password and username combination. Instead, they can simply enter their email address or phone number, quickly scan their fingerprint or face and move on to the next step with minimal hassle. Businesses that offer easier, simpler registration and login methods will see more successful transactions and fewer abandoned carts.
#5 – Keeping up with their login expectations shows that you care about your customers
The FIDO Alliance surveyed consumers[7] across a number of different regions and found that 60% believe retailers offering on-device authentication care more about their customer experience. That’s a considerable number of people who could feel like you’re doing more for them — and more for their digital journey — than competitors. Similarly, Experian reported in 2020[8] that 77% of people feel most secure when using physical biometrics, and another 62% believe it improves their customer experience when managing finances or payments online.
Here’s the bottom line: authentication expectations are changing, and customers want the ability to log in with biometrics. That means zero passwords anywhere, and without knowledge-based credentials ever showing up in the process. But it shouldn’t end there. A complete passwordless solution must offer a full spectrum of login options that work for everyone, including those who are not able or ready to use biometrics. Magic links or time-based one-time passcodes (TOTPs) are passwordless methods that also eliminate your greatest risk: customer passwords.
When companies upgrade to a customer-friendly, truly passwordless authentication service, it removes the burden of complicated registration requirements and tough-to-remember passwords. Passwordless authentication turns a process that used to take several stressful minutes into a one-touch operation. The evolution of customer logins is making the digital world more accessible for all of us.
The more your company invests in a better initial login experience, the happier your customers will be. Loyal customers spend more and visit more frequently, and they’ll spread the word about your secure, effortless experience. Every visitor will know something is special and different about your digital channels.
While digital experience specialists have spent years tweaking pixel-perfect website designs and button colors to maximize engagement, they often forget about the friction that comes from first-time authentication. The next competitive step in improving the digital experience is building better, easier and more seamless authentication. It’s no longer a question of whether companies should adopt more refined authentication — it’s when.
Ready to say goodbye to passwords? Learn more about BindID today!
IT Leadership, Passwords, Security
Read More from This Article: 5 Reasons Why a Good First Login Experience Can Drive Revenue
Source: News