A new report from the Business Performance Innovation (BPI) Network and the CMO Council suggests that businesses that rely on passwords will end up losing customers to the competition. The report found that more than 60 percent of consumers have walked away from a transaction after becoming frustrated with the authentication process, while a full 81 percent would seek out brands that deliver a simple and secure identity verification experience.
Passwords were a major point of contention in that regard, with a strong majority (68 percent) of consumers indicating that it is difficult to remember and key in a large number of passwords. Nearly half (44 percent) believe that biometric authenticators are easier to use, while 34 percent would prefer to use them as their primary means of identity verification as long as the technology is secure. For comparison, only 10 percent would prefer to use passwords when other authentication methods are available.
As it stands, a poor authentication experience can seriously tarnish a brand’s reputation. The majority (53 percent) said that login frustrations have a significant negative impact, while a vast majority (85 percent) said that they think less of a company that struggles with identity verification. That was particularly true for financial institutions, with consumers listing banks, credit providers, and mobile payment services as some of the most egregious offenders.
The results are based on the feedback of 2,000 consumers in the US, the UK, Canada, and Ireland. The survey itself is part of a new Unify How You Verify initiative that will encourage businesses to deliver a streamlined authentication experience across every customer channel. The initiative is a collaboration between BPI Network, the CMO Council, and Daon.
“Businesses and brands need to listen to what consumers are so clearly telling them,” said BPI Network and CMO Council Executive Director Donovan Neale-May. “Simplify and improve authentication and you will gain customer loyalty and grow your business. Fail to do so, and you can expect greater customer churn and revenue losses.”
The Authentication Frustration report echoes another recent report from Ping Identity, which similarly found that customers will abandon companies that offer poor online experiences. For its part, Daon noted that the number of people using digital services has increased during the COVID-19 pandemic, and the company has attempted to meet that growing demand for remote identity verification technology. Most notably, the company’s new VeriFLY immunity passport has rapidly gained traction in the air travel and hospitality sectors, while its IdentityX onboarding solution has proven to be popular with credit unions.