Transmit Security has published the results of a survey that suggests that passwords have a direct (and negative) impact on a business’s bottom line. The survey found that more than half (55 percent) of US consumers have stopped visiting a website after losing patience with that site’s overly complicated login process.
Meanwhile, an astonishing 87.5 percent have been locked out of an online account due to failed login attempts. Those lockouts translate directly to lost sales, since the vast majority (92 percent) will abandon a site instead of going through the steps needed to recover an account.
That effect can even be observed during account creation. Two-thirds of consumers will walk away from a complex registration process, while a similar number (64.5 percent) will leave as soon as they are asked to create a username and password.
Transmit also noted that more than 50 percent of consumers have taken advantage of the fact that passwords can be shared, and given someone else access to at least one of their accounts. In addition to the obvious security risk, that can limit a site’s potential customer base since the person receiving the shared password no longer needs to sign up on their own.
With that in mind, Transmit argues that businesses that want to attract and retain their customers should work to remove passwords from their customer experience. The company recently released BindID to provide businesses with a passwordless authentication option.
“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,” said Transmit Security CEO and Co-Founder Mickey Boodaei. “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 It’s time to eliminate our dependency on outdated password technology and evolve to a place where passwords are no longer necessary.”
The Transmit survey is based on the feedback of 600 US consumers. The findings echo those of the FIDO Alliance, which has similarly reported that online retailers will lose sales if they rely too heavily on passwords. Other organizations have highlighted the dangers of sharing passwords in the workplace.
March 31, 2021 – by Eric Weiss