Consumers would rather do business with companies that make authentication simple and safe, according to 81% of the 2,000 consumers surveyed by CMO Council and Business Performance Innovation (BPI) Network.
The data shows that frustration with cumbersome and repetitive authentication processes leads consumers to search for brands that offer a different type of digital verification process.
Based on a survey conducted across the United States, Canada, the United Kingdom, and Ireland, the study — Authentication Frustration. How Companies Lose Customers in The Digital Age — cites the challenges consumers face when using passwords and authentication processes.
Some 61% said frustration over authentication has caused them to give up and abandon a business transaction, followed by 32% who said the frustration did not cause them to abandon the transaction, and 8% who said they were not sure.
The frustration stems from a variety of challenges. Some 85% of respondents said a difficult authentication process reflects negatively on a company and its brand, including 53% who said it has a “major” or “significant” negative impact on their perception of the brand. Some 31% note that it has “somewhat” of an impact, followed by 10% who said it impacts them “slightly, and 5% who said not at all.
Financial services companies are a frequent source of authentication frustration. Consumers point to digital devices as the area where they face the most difficult identity experiences, at 43%, while some 37% cite banks as the biggest area of challenge, 29% cite credit and debit cards, and 27% cite mobile payment services.
Users said they strongly prefer physical biometric authentication methods such as facial and fingerprint recognition. Some 68% said they have issues remembering and using passwords, while 55% say it is difficult to keep track of numerous passwords, 34% say they have trouble when asked to strengthen their password, and 25% have issues coming up with new passwords.
Some 40% use at least 11 passwords, including 23% who have 16 or more passwords.
Only 10% prefer passwords and other forms of authentication over biometrics. Those who prefer biometrics, at 44%, favor the use of their voice, fingerprint, face, eyes, and behaviors and say it is an easier and better form of verification.
Some 34% would prefer to use biometrics as long as it is secure, and 10% prefer passwords and other forms of authentication compared with biometrics.
The report is part of a new initiative by the BPI Network and CMO Council called Unify How You Verify, being conducted in partnership with Daon, an identity assurance technology.
The program explores the critical business need to simplify the way companies recognize and authenticate their customers and partners across channels of engagement.