New Survey reveals that High Levels of Frustration Over Identity Authentication Are Turning Consumers Away from Brands, causing high levels of Consumer Fattyness
According to a new report released by the Business Performance Innovation Network and CMO Council, "Authentication Frustration is increasing consumer frustration with cumbersome and repetitive authentication processes." SAN JOSE, Calif., Oct. 12, 2021 /PRNewswire/ -- Consumer frustration over cumberous and lengthy authentication procedures is causing consumers to seek for brands and digital experiences that securely unify and simplify identity verification, according to the BPI Network's and the CMC Council'' "Authority Faultration." How Businesses Lose Customers in The Digital Age,"
Based on a survey of 2,000 people across the United States, Canada, the UK, and Ireland, based on the study, an overwhelming majority of 81% of respondents would rather do business with firms that perform fewer tasks of recognizing and verifying their identity "simply, quickly,and securely." Over 60 percent of respondents say they've given up on business transactions because of authentification difficulties.
Download the complimentary report at: https://cmocouncil.org/thought-leadership/reports/authentication-frustration/
Problems with passwords are a major concern for consumers, who claim they prefer physical biometric authentication methods such as facial and fingerprint recognition over password problems. Nearly 7 in 10 consumers (68 percent) say they have difficulty remembering and using passwords. Forty-percent of respondents say they have at least 11 passwords, compared to 23 percent of those with 16 or more.
The study is part of a new initiative by the BPI Network and CMO Council, Unify How You Verify, being conducted in partnership with Daon, based on renowned identity assurance technology. The thought leadership seminar addresses the business imperative to simplify and unify the way firms recognize and authenticate their clients and partners across channels of communication.
In addition to examining consumer attitudes towards current authentication methods, the initiative will include a further report, based on interviews and interactions with senior executives and experts in identity management, security, customer support, and ecommerce, on what can be done to enhance customer experiences and increase revenue, satisfaction,, compliance, among other things. The program will host a webinar discussion on research findings on modernizing the customer authentication experience on Oct. 27. You may register to participate in the webinar here.
"Password pain is not a new phenomenon," says the author. Yet, it remains a persistent concern for consumers," said Donovan Neale-May, executive director of the CMO Council and BPI Network. Businesses and brands must be aware of what their consumers are saying to them. Simplify and improve authentication and you'll gain customer loyalty and expand your business. Fail to do so, and you'll likely see more customer churn and less revenue.
"Data protection, privacy, and identity theft are significant challenges for today's digital business world," said George Skaff, Daon'' svp of marketing. "The problem has gotten significantly more acute in recent months, as consumers have relied heavily on digital transactions during the Covid epidemic. We at Daon believe that companies must adopt an "Identity Continuity" approach to authentication, in which biometric and non-biometric factors come together on a single platform to create statewide unified identity experience throughout the customer relationship lifecyclefrom identity proofing and onboarding to identity verification and recovery."
Market data shows that consumers have significantly increased their use of digital channels and interactions during the epidemic, according to a recent McKinsey study. Global business executives estimate that their digital interactions with customers and partners have increased by about 3 to 4 years due to the pandemic.
Other findings of the Authentication Frustration report are:
- 85 percent of respondents say a lengthy authentication process negatively impacts o firm and its brand, including 53 percent who claim it has 'a major' or significant' negative impact.
- Financial services businesses are a frequent source of authentication frustration. Consumers say the top areas where they encounter difficult identity experiences are:
- 43% Digital devices are 41% Digital.
- 37% Banks.
- 29% Credit and debit cards (including wire transfers)
- Mobile payment services provide 27% Mobile payments are offered at a discount.
- Most vexing problems with passwords:
- 55 % Keeping track of numerous passwords is an absolute must.
- 43% Needing to re-create passwords
- 34% Being asked to strengthen passwords.
- 25% Coming up with new passwords?
- Consumers overwhelmingly favor biometric authentication, including voice, fingerprint, face, eyes, and behaviors, according to the survey.
- 44 percent of respondents say they "absolutely" believe biometric authentication is a faster and more secure method of verification.
- 34 percent of respondents would like to utilize biometrics as long as it is secure.
- Only 10 percent of adults would rather use passwords and other forms of authentication than biometrics.
About the BPI Network About BPN About The BTI Network BUI The Business Performance Innovation (BPI) Network is a peer-driven thought leadership and professional networking organization that serves 50,000 senior executives in IT transformation, change management, business re-engineering, process improvement, and strategic planning. The BPI Network brings together global executives who are advocates of change through ongoing research, authoritative content, and peer-to-peer discussions. Visit www.bpinetwork.org for more information.
About the CMO Council About CIO Council Overview The COO Council provides a number of key advisory services to CFOs. The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership, and personal relationship building among senior corporate marketing leaders and brand decision-makers in a variety of industries. The CMO Council's 16,000+ members control more than $1 trillion in annual marketing expenditures and run complex, distributed marketing and sales operations around the world. Over 65,000 global marketing and sales executives in over 110 countries, spanning a variety of industries, segments, and markets, make up the CMO Council and its strategic interest communities. Regional chapters and advisory boards are active in the Americas, Europe, Asia Pacific, Middle East, and Africa. The Council's strategic interest groups include the Customer Experience Board, Digital Marketing Performance Center, Brand Inspiration Center. Marketing Supply Chain Institute, GeoBranding Center and the Coalition to Leverage and Optimize Sales Effectiveness (CLOSE). https://www.cmocouncil.org/ to learn more.
Daon Dao Daun Dai Daong Dain Dae Da' Daon, www.daon.com, is a world-renowned innovator in developing and deploying biometric authentication and identity assurance solutions. Daon has pioneered methods for securely and conveniently combining biometric and identity capabilities across multiple channels with large-scale deployments that span payments verification, digital banking, wealth, insurance, telcos, and securing borders and seamless travel. Daon's IdentityX platform offers a comprehensive, trusted digital security experience, allowing the creation, authentication, and recovery of s/he name, as well as enabling businesses to perform transactions with any consumer through any medium with total confidence. Get to know us on Twitter and LinkedIn. https://www.daon.com/ to learn more.
SOURCE CMO Council of Ministers Council on Marketing SURCE Council COO Council