Marketing

Why complicated processes damage customer loyalty – eCommerce Magazin

Massive abandoned purchases cost companies a lot of money and resources in the long run and have a negative impact on their reputation. Therefore, decision-makers should take a closer look at the online behavior of users and not underestimate their preferences when logging in. In order to highlight the extent to which the expectations of the online users match the login options of the companies, the identity management provider Auth0 carried out the study “Logins: What German Consumers Want” with more than 2,000 users and 200 decision-makers in Germany.

Cumbersome logins as a knockout criterion

Specifically, the survey showed that 78 percent of German consumers have canceled their purchase process or the registration for online content / apps or would cancel if the process is too difficult. This has a lasting effect, especially for smaller providers. Because interested parties who discover the goods they are looking for there, but are confronted with a time-consuming registration before buying, often make their way to one of the large suppliers with whom they are already registered. The chance to win a new regular customer is wasted.

Unsurprisingly, it was found that consumers in Germany are most annoyed when they have to fill out long registration or registration forms (42 percent) and enter personal data (38 percent). This is particularly understandable if this information is to be entered on the smartphone. However, this does not seem to have arrived at many companies: 37 percent of the decision-makers surveyed assume that it will take between one and five minutes and twelve percent assume that the process will take five minutes or more.

Marketing decision-makers underestimate preferences when it comes to logins

Interestingly, the traditional username / password combination is no longer the measure of all things. For example, 40 percent of consumers prefer multifactor authentication in a security-conscious manner – i.e. the verification of identity on the basis of multiple credentials (e.g. biometric features, knowledge queries and code transmission to smartphones). The following places are followed by single sign-on (32 percent) – i.e. one-time registration with an identity service for the use of several services – and biometric logins (31 percent). 25 percent of those surveyed expect access that does not require a password and almost as many (24 percent) expect social login via a network service that is already in use, such as Apple, Twitter or Google.

What customers prefer for login procedures

This distribution shows that the login preferences of consumers are very different. After all, not all users have the same technical understanding and the same technical requirements. Demographic characteristics, but also the individual feeling of security when registering, play a role – for example, many consumers consider increased security measures for authentication for the online bank account to be sensible, while the same precautions for a “simple” online news subscription could be incomprehensible.

Website operators come closest to these different wishes if they offer different login methods for their online presence, depending on the online behavior of the users. In this way, they also cover the requirements that arise for individual customers depending on the device they are currently using (PC, tablet, smartphone, web terminal). Most companies fall short of these expectations, however. Decision-makers underestimate the importance of a simple login and, despite the general frustration of consumers with the use of passwords and their need for modern login technologies, do not offer them.

It is therefore a Vabanque game whether the online visitor willing to buy can use the preferred registration procedure in the web shop of their choice. According to their decision-makers, the ranking of the login services offered by companies does not match the wishes of customers. Here single sign-on (46 percent) leads before social login (29 percent) and multifactor authentication (27 percent). 24 percent of the registrations do not require a password, identification via biometric data is provided by only 17 percent of the websites. The biometric sensors omnipresent in current smartphones make it possible to verify access without a password.

Ignorance of the hurdles with logins costs sales

In general, more than four out of five (85 percent) of the decision-makers surveyed assume that potential customers will cancel the order when shopping or when registering for the online services of their shop. One in three of them (33 percent) think customers do this all the time or often. Of the decision-makers who state that potential customers cancel their registration, 41 percent attribute this to the registration process. 35 percent see the cause in the login process.

Customer loyalty is a must, especially when it comes to performance in the online shop. But for users to become customers at all, the registration process has to work smoothly. That means, convenient and secure at the same time, whereby companies should not make the mistake of assuming consumers to have a uniform sense of security. At first glance, standardized solutions are associated with fewer costs and resources for companies. However, tailor-made login solutions can offer the decisive competitive advantage in terms of customer loyalty. Otherwise, the providers concerned not only lack the lost sales, but also registered customers who can become regular customers. (sg)

Logins Auth0
Vitor de Sousa is Regional Director DACH at Auth0. (Image: Auth0)

About the author: Vitor de Sousa is Regional Director DACH at Auth0. In this position he is responsible for the brand growth of Auth0 in the DACH area and supports customers in the area of ​​identity and access management. With over 20 years of experience in the consumer goods industry as well as in technology and software sales, Vitor de Sousa develops innovative solutions. These support the interaction of identity authentication and customer experience with regard to current challenges from cybersecurity and data protection. (sg)

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