Why passwords are to blame for loss of revenue, identity attrition and poor customer experiences
Transmit Security has released a state of customer authentication report that includes customer experience insights based on its survey of 600 U.S. consumers. According to the report findings, organizations are losing potential customers and a substantial amount of revenue due to their dependency on traditional password systems and outdated customer authentication models.
Challenges connected to password-sharing habits
The report also underscores the challenges connected to password-sharing habits. More than 50% of the survey participants admit they have shared a password to, at least, one of their online accounts with someone else and 41% say they share their passwords often.
Not only does password-sharing pose a severe security risk, it impacts businesses in a number of ways, from the amount of revenue they’re able to generate to their ability to monitor usage and personalize services.
Traditional passwords also significantly impact customer experiences. The report revealed 55% of consumers have stopped using a website because the login process was too complex, and that 87.5% of consumers have found themselves locked out of an online account after too many failed login attempts. Worse, 92% of users will leave a website instead of recovering or resetting their login credentials.
Complicated, error-ridden password systems
In fact, for most customers the problems with passwords begin long before a failure. Data shows that 66% of users will leave a website if the registration process is too complex. And 64.5% will abandon the site if they are simply asked to create a username and login.
“The number of consumers getting blocked from their online accounts because of poor password experiences is staggering. Customers are dropping out of transaction processes – or failing to use a site at all – due to overly complicated, and oftentimes error-ridden, password systems,” says Transmit Security CEO Mickey Boodaei.
“These horrible customer experiences are costing businesses an unimaginable amount of money, not to mention the revenue that’s lost due to password-sharing between consumers. The market is ready for change. It’s time to eliminate our dependency on outdated password technology and evolve to a place where passwords are no longer necessary.”