New research from the FIDO Alliance during the busy holiday shopping season reveals consumer frustrations with online retail is leading to lost sales.
According to the survey, conducted with 1,000 consumers in the U.S., password frustrations are leading to abandoned carts. The report finds 58 percent in the U.S. have abandoned purchases due to the difficulty of managing passwords. Shoppers report canceling transactions because they either could not remember their password or were being forced to create a new account and password to make the purchase.
The research also identified several reasons for potential loss of repeat business, as multiple factors stop people from setting up new accounts after making an initial purchase. Their chief concern, cited by 40 percent of customers, is that they don’t want their financial information to be stored on retailers’ databases. Having to enter billing and personal data (34 percent) was another reason, and passwords were again a source of frustration with 28 percent stating that having to set up and remember a new password would stop them from opening an account.
“Many common online retail practices, like setting up new passwords and accounts, are being rejected by consumers and consequently are hurting retailers’ bottom lines. These outdated processes introduce friction into an experience that people rightfully expect to be as smooth as possible,” said Andrew Shikiar, executive director at the FIDO Alliance.