Sunday, December 19, 2021

Online retailers will lose out on millions in revenue this Christmas - here’s why

Retailers are sacrificing millions of dollars in ecommerce revenue as a result of annoying password and sign-up experiences, new data shows.

According to a survey of 1,000 UK consumers from access management firm Beyond Identity, 62% of people would abandon a shopping cart if asked to sign up for an account.

Worse, the vast majority (83%) said they would seek out the services of a competitor, 76% would be hesitant to return to the website in future and 58% would be left with a poor opinion of the offending brand.

In other words, password- and login-related friction is having serious knock-on effects for retailers.

‘Forget the password’

With many millions of dollars in consumer spending to play for during the holiday shopping season, retailers will want to do everything they can to maximize checkout completion rates. But it appears consumers are increasingly unwilling to accept any form of friction in the shopping experience, even for the sake of security.

Asked to name the most annoying aspects of online login and registration, more than a third (38%) of respondents cited the likelihood of forgetting their password, 39% are frustrated by specific password requirements, and 39% said they resent CAPTCHA authentication.

Many respondents (32%) also reported that “fatigue from constantly creating online accounts” had prevented them from completing a purchase in the past.

“We’ve all experienced the frustration of forgetting our passwords. Now it’s time to forget the password altogether, because the results of this survey show they are becoming a liability,” said TJ Jermoluk, Beyond Identity CEO.

“The online retail space is hugely competitive, so brands should be very nervous to hear that problems with passwords, account sign-ups and online registration can drive customers to abandon their carts or seek a competitor’s service.”

It has been said many times before that the days of the password are numbered, but the incentives now appear to have lined up for all parties involved. Beyond Identity predicts this will usher in a future in which passwordless login (which combines biometrics and device-based authentication) becomes the established norm.



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