[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/05\/10\/passwordless-authentication-solve-cx-pain-points-boost-revenue\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2022\/05\/10\/passwordless-authentication-solve-cx-pain-points-boost-revenue\/","headline":"Passwordless authentication: Solve CX pain points, boost revenue","name":"Passwordless authentication: Solve CX pain points, boost revenue","description":"Passwordless authentication is gaining traction as brands grapple with the risks posed by traditional account passwords. Learn how it works and the business benefits.","datePublished":"2022-05-10","dateModified":"2022-05-17","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/ratul-shah\/#Person","name":"Ratul Shah","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/ratul-shah\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/62b0423fd8b1057b26029bde5e614303?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/62b0423fd8b1057b26029bde5e614303?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Customer Engagement and Experience","logo":{"@type":"ImageObject","@id":"http:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/03\/logo-fcee-schema-app.png","url":"http:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/03\/logo-fcee-schema-app.png","width":278,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/04\/MFA-Cybersecurity_1200x375.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/04\/MFA-Cybersecurity_1200x375.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2022\/05\/10\/passwordless-authentication-solve-cx-pain-points-boost-revenue\/","about":["CDP: Customer Data Platform","Customer profiles: Customer Identity + Access Management (CIAM) for B2B and B2C","Data Privacy: Laws, Consumer Expectations"],"wordCount":1218,"keywords":["Authentication","CIAM | Customer Identity and Access Management","Consumer Privacy"],"articleBody":"As account takeover attacks skyrocket and customer frustration with digital experiences mount, passwordless authentication has become a hot topic. A recent survey by Enterprise Strategy Group found that 85% of IT and cybersecurity professionals agreed that adoption of passwordless technologies is a top\u00a0 strategic initiative.But is it right for your business? Let\u2019s explore what this authentication approach involves, its benefits, and how to implement it effectively.      What is customer identity and access management? Why does it matter?                Customer identity and access management is becoming a must-have for brands in the digital era. Get up to speed on this emerging technology.      The business impact of password hellPasswordless authentication is gaining traction as businesses grapple with multiple risks associated with traditional account passwords.Customer attrition: In one recent study, nearly 20% of customers who forgot their passwords abandoned their account rather than endure the password reset process.Cart abandonment: A survey of 1,000 consumers found that one in four online shoppers were willing to abandon a cart of $100 or more if they had to reset their password to check out.IT helpdesk resource strain: By one World Economic Forum estimate, larger businesses allocate nearly 50% of IT help desk costs to password resets.Cybersecurity: Bot-driven credential stuffing attacks are growing. Aberdeen Strategy & Research found that 84% of business survey respondents said their online users had experienced a successful account takeover (ATO) in the past 12 months.      With data breaches everywhere, customer data management becomes crucial                Customer data management best practices allow businesses to fortify their commitment to positive relationships. The potential for growth, in commerce and trust, is massive.      Two-factor authentication comes to the rescue, but there’s a catchTo combat these risks, many brands shifted to a two-factor authentication (TFA) strategy, where users create a password and choose another method to verify their credentials.While TFA is effective against cybersecurity threats, the additional verification step adds a level of friction and rigidity to the experience. Users can be reluctant to adopt it.Last November, Twitter revealed that only 2.3% of its active accounts opted in for TFA. Meta said it\u2019s TFA enrollment was similarly small.Bye, bye passwords: The promise of passwordless authenticationBrands are turning to passwordless strategies to address the weakness of traditional password authentication and avoid the rigidity of TFA. In fact, Apple, Google, and Microsoft recently announced plans to expand support for a common passwordless sign-in standard created by the FIDO Alliance and the World Wide Web Consortium.Put simply, passwordless authentication is the process of giving a user access to a digital property using credentials that don\u2019t involve password setting. Here are examples of some of the most popular types:Phone login (mobile SMS) – Customers receive a one-time SMS code that enables them to access a digital property.E-mail one-time password (OTP) or magic link – A brand sends customers a one-time code or an HTML link to the email address on file, which enables access to a digital property.Fast Identity Online (FIDO) – This method turns a customer\u2019s device (either mobile or desktop) into the authentication key. Set up after the initial log-in, FIDO authentication uses the security of today\u2019s devices \u2013 such as biometrics \u2013 to validate the customer\u2019s identity and offer a frictionless log-in experience.Push authentication – Customers authenticate on their mobile phones by confirming a push notification, instead of using their password.While each method executes differently, they all reduce the security risks associated with the traditional password, make accessing digital properties fast and easy, and offer relief to contact center reps.      Why data security is critical to the future of CX                No technology can overcome the fact that the customer experience is a human endeavor. Learn why data security is critical to the future of CX.      Authentication: one size does not fit allNo single passwordless method has risen above the others. In fact, the key may be offering customers a choice, according to McKinsey & Company: \u201cTo reduce friction from rigid multifactor-authorization requirements, for example, customers could be allowed to choose their preferred multifactor method from a list of options.\u201dThis notion of choice demonstrates the need for an authentication strategy to consider the balance between security and experience.If the method favors a frictionless experience too much, there may be security implications. Conversely, a rigid multifactor approach may be secure, but it might also drive customers away.The right balance, however, can improve customer retention, grow more revenue, reduce IT costs, and boost security.      Is it easy for consumers to buy from you? How customer identity management can help                Customer identity management matters because requiring customers to log in each time they visit an e-commerce site or interact with your brand can erode CX, reduce conversions, and push customers toward competitors with easier authentication processes.      Get ahead of the curve with CIAMThe shift away from passwords is still in the early stages. A new Microsoft report found that just 22% of the companies in the Azure Active Directory used strong authentication.So, the window of opportunity is open now to gain a competitive advantage by beating competitors to market with passwordless authentication. Here’s where customer identity and access management (CIAM) software can help.With the job of creating the front door to a brand\u2019s digital properties, today\u2019s CIAM software offers a range of authentication options, including passwordless, and enables a brand to apply its chosen method efficiently.As this example shows, brands can choose an authentication type with just a few clicks.      CIAM solution: Should you build, adapt, or buy?                When looking for a customer identity and access management solution, companies have three options. Find out how to choose what's best for your brand.      Risk-based, intelligent authenticationGlimpsing into the not-too-distant future, the next evolution of authentication strategy brings artificial intelligence into the conversation.Instead of basing access on a pre-set authentication flow, innovative businesses are using AI to assess the risk of the log-in attempt. The assessment includes several factors, including:What time of day is it for the user?What IP address is the user logging in from?How many attempts has the user made to log in?Has the user suffered an ATO attack previously?The score determines the user\u2019s authentication journey. If they\u2019re low risk, a frictionless method is served. If they\u2019re high risk, the brand can automatically add authentication steps \u2013 like the dreaded CAPTCHA challenge \u2013 to ensure security.      Benefits of CIAM: Better security, slick CX, and more revenue                Discover the benefits of customer identity and access management (CIAM) software and how it can help your business grow revenue.      Bottom line: simplicity, security, and satisfied customersAuthentication is a critical point in the digital experience and passwordless approaches are gaining momentum.C-suites should prioritize executing the strategy that best suits their customer needs and finding the right supporting technologies, like CIAM. By doing so, they can boost customer retention, reduce security risk, and ultimately drive revenue.As history shows, authentication constantly evolves. New methods, standards, and innovations are the rule, not the exception. By partnering with a CIAM vendor who works to update their software with the latest innovations, businesses can benefit from new methods as they arise while maintaining their focus on growth.  Break free of password hell & crush your revenue targets. 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