Online retailers need to improve login experiences or risk losing customers

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Online retailers rely on the appeal, consistency, and effectiveness of their website and app to attract new business and build lasting relationships with existing customers.

While the website and app may be attractive, all too often the login box lets retailers down. If the first buying interaction customers have online is disappointing, retailers will pay a high price. Customers abandoning their online carts represents lost business that may never be recovered. 

A shopper’s entire online experience can be impacted by a clunky or insecure login. So much so that 72 per cent of Aussie shoppers say they wouldn’t give an online retailer a second chance if they had a bad experience.  

This means it is absolutely crucial that online retailers provide the right sort of experience for their customers or risk jeopardising sales. However, there is still a significant disconnect between what consumers and businesses think of login methods, according to a recent  YouGov/Auth0 survey of businesses and consumers in the Apac and EMEA regions. 

Cart abandonment due to poor login processes

The research found that almost nine in 10 Australian consumers (86 per cent) abandon their shopping cart or registration attempt due to a complex login process. Interestingly, however, while 88 per cent of Australian businesses admit that potential customers abandon their cart or sign-up process, nearly one in three (29 per cent) think it’s unlikely that login processes are the cause of abandonment.

It’s clear from this research that businesses are failing to recognise the impact a poor login or sign-up experience can have on the shopper’s experience, leading to cart abandonment. In addition, there is a significant disconnect between what businesses are offering and the experiences customers expect during login. Half of consumers (50 per cent) are frustrated by long login and sign-up forms, yet businesses are not expediting the process. Thirty per cent of businesses estimate that it takes between one and five minutes for new customers to sign up for their app, and as many as one in four (26 per cent) say the login process for returning customers takes more than one minute.

Choice is the spice of life

When providing a login experience for customers, both simplicity and speed of sign-up are important. As customers become increasingly savvy about the value of their data and the repercussions of it being breached, security is absolutely a priority.

The Auth0 research found Australian consumers want greater choice in login technologies and will choose retailers that provide them. For example, more than half surveyed (52 per cent) say they are more likely to sign up to an app or online service if a company offers multi-factor authentication (MFA). Other preferred technologies included Single Sign-On (SSO) that uses a single ID and password for multiple related services, followed by biometrics and passwordless.

Each of these technologies provides a secure and frictionless experience, yet most Australian businesses don’t offer these login options, despite the demand. While 53 per cent of businesses surveyed do offer SSO capabilities, only a third offer biometrics (34 per cent), and fewer still offer MFA (30 per cent) and passwordless (23 per cent). In total, across EMEA and Apac, one in 10 IT and marketing decision-makers said they don’t offer any of these login technologies.

The opportunity for retailers

By optimising their customers’ login experiences, retailers have a huge opportunity not only to reduce cart abandonment, promote loyalty and protect online transactions but also to gain insights into customer preferences, navigation journeys and buying habits. These insights into customer behaviour hold the key to personalising the shopping experience for each customer.

Customers already expect retailers to remember key information on their preferences, history and delivery details so retailers that can gather and use this data securely will encourage repeat visits. 

However, it’s absolutely critical when dealing with data that retailers understand the importance of using it in the correct way or risk breaking customer trust. Retailers must only use customer data in specific ways to enhance the shopping experience and treat the data with the same importance and care that the customers themselves do. 

As you have seen, the login experience is more than a necessary part of the customer transaction. By providing an effective, frictionless and secure way to access online services, retailers can better understand customer behaviours and improve customer loyalty. 

About the author: Richard Marr is General Manager for Apac at Auth0.