The novelty of e-commerce and digital services has officially worn off. If the pandemic has made us realize anything about how our global marketplace works, it’s that online shopping and services have become an integral part of everyday life. However, as web marketplaces and platforms have grown, so have customer expectations. It is not enough to simply provide an adequate online channel. Now it has to compete for the attention of your customers.
Consumers today are looking for a seamless and effortless experience the moment they enter an online store or open their banking app, and that experience includes logging in. Although customers are concerned about privacy and security, they are unwilling to sacrifice a seamless journey for invisible benefits. In 2022, digital customer experience aims to make every step of the customer journey smooth and fast: smoother product searches, fast bank transfers and almost invisible connections.
Yet nothing stops an online shopper in their tracks like an account lockout or a forgotten password. Authentication issues are the most frustrating hurdles a customer will face online, and businesses need to address them if they want to increase revenue and competitive advantage. Here are five reasons why giving customers a great first sign-in experience can drive revenue in 2022:
#1 – Customers Don’t Lag When Connection Takes Too Long
What makes a good first impression in a digital experience? For most consumers, it’s convenience. If a product cannot be researched, purchased, and delivered directly to their doorstep with minimal hassle, consumers will gladly turn to a competitor. And, while banks and other digital services don’t suffer from the same volatility among customers, their users will avoid channels that don’t meet their expectations for ease of use.
For example, some businesses want to generate revenue through a mobile app in addition to their website or physical locations. However, getting customers to adopt an app that requires them to re-register or one that takes them through a frustrating sign-in process can be difficult. According to a 2020 Experian report, 1 in 3 customers will abandon their online shopping cart if it takes more than 30 seconds to complete an online transaction. Imagine trying to trick those customers into downloading and installing an app, then logging back into the new channel.
It just won’t happen.
The harsh reality is that consumers have the upper hand when it comes to ease of registration and connection in the digital marketplace. You might already have competitive pricing, great customer service, and a robust selection — but that doesn’t matter if customers cling to authentication. Today’s consumers often buy from a wide range of online marketplaces, and they will compare your channels to those of your competitors. If you think a friction-filled login process can’t hurt your revenue, think again.
#2 – Making customers feel secure encourages them to transact
One of the main reasons customers abandon their online shopping cart is that they simply don’t feel safe. According to a 2022 Baymard Institute survey, nearly one in five customers left an online store because they didn’t trust it with their credit card information. Customers in 2022 are more reluctant than ever to share their financial information. Data breaches, account takeovers and fraud make 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 their digital identity is safe are more likely to spend time browsing, researching and selecting the services and products they want to purchase. In 2021, an Experian survey revealed that 55% of consumers rate security as the most important aspect of their online experience. This suggests that around half of the customers who visit your digital channels think security is more important than your prices, selection and brand.
Smart businesses in 2022 will assess how they show customers that shopping with them is safer than ever. It’s not enough to scatter the “Norton Verified” and TrustPilot logos all over your header and footer. You need to offer more connection options, more security features, and more control. In 2017, a Visa survey found that more than half (53%) of credit card holders would switch banks if their current bank did not offer biometric authentication options in the future. We can’t say for sure if they’ve changed – but five years later many banks have heard this request and have responded with biometric logins on the device.
#3 – Connecting is part of a larger CX journey – and every step impacts revenue
We’ve already used this term above, but “friction” – a catch-all phrase for anything that slows down a customer journey – goes beyond checkout options and navigation menus. The reality is that the concept of CX friction also applies to connection. Usability is nothing new in the digital experience, but many companies forget that authentication is an integral part of the process. It’s an oversight that pains many customers, and many more will leave unless companies start taking full CX, including connections, seriously.
If customers are bothered by a high-friction sign-in process, they may become frustrated and give up. According to Mastercard research, a third of customers will simply walk away if they can no longer access their account. Similarly, a report by the FIDO Alliance shows that 60% of consumers canceled transactions because they couldn’t remember their password or were forced to create a new account and password to complete the purchase.
On the other hand, customers love companies that give them a more seamless experience. The ability to switch between different channels without re-subscribing, for example, is an innovation that some companies have started to offer. Combined with passwordless authentication methods like physical biometrics, customers can have the easiest login experience – one that drives them to your products and services instead of struggling with security lockouts. account.
#4 – Effortless Connections Eliminate Friction Between Browsing and Purchasing
When authentication is fast and smooth, customers are better able to enjoy an uninterrupted online experience. With less frustration preventing them from going from interest to purchase, they’re much more likely to browse, purchase goods and services, and recommend your brand to others. At the same time, easier connections prevent you from losing a customer because they are having difficulty connecting. Instead, they focus on their personalized journey and the products you offer.
Problems arise when otherwise satisfied customers are forced to create a new account with a username and password. Instead of quickly proceeding to checkout, they are forced to include another combination of credentials in their browser. That’s enough to stop some customers from following through on a purchase, and businesses aware of this obstacle will keep the flow uninterrupted. Customers shouldn’t have to think twice about authentication, even if it’s their very first time.
One of the benefits of passwordless authentication is that new customers don’t even have 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. Companies that offer easier and simpler sign-up and login methods will see more successful transactions and fewer abandoned carts.
#5 – Tracking Their Connection Expectations Shows You Care About Your Customers
The FIDO Alliance polled consumers 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 massive number of people who might feel like you’re doing more for them — and more for their digital journey — than your competition. Similarly, Experian reported in 2020 that 77% of people feel more secure when using physical biometrics, and a further 62% believe it improves their customer experience when managing finances or making payments online.
Here’s the bottom line: Authentication expectations are changing and customers want to be able to log in with biometrics. This means there are no passwords anywhere, and no knowledge-based credentials ever appear in the process. But it shouldn’t stop there. A complete passwordless solution should offer a full range 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 access codes (TOTPs) are passwordless methods that also eliminate your biggest risk: customer passwords.
When businesses switch to a user-friendly, truly passwordless authentication service, it eliminates the burden of complicated registration requirements and hard-to-remember passwords. Passwordless authentication turns a process that previously took several stressful minutes into a one-touch operation. The evolution of customer connections is making the digital world more accessible to all of us.
The more your business invests in a better initial login experience, the happier your customers will be. Loyal customers spend more and visit more frequently, and they’ll make your experience safe and effortless. Every visitor will know that something is special and different about your digital channels.
While digital experience specialists have spent years tweaking website designs and pixel-perfect button colors to maximize engagement, they often overlook the friction that comes with first sign-on. The competitive next step in improving the digital experience is to create better, simpler, and more transparent 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!