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Boosting Customеr Rеtеntion Ratеs With Stratеgiеs for Passwordlеss Authеntication

With the rise in cyber crimes, like phishing attacks, due to weak passwords and password reuse, passwordless authentication is the new way businesses can improve customer retention by providing a sense of security to users.

The conventional use of one-time passwords (OTPs) and passwords have long been fundamental in securing online accounts. With these strategies, businesses might not give what today's users want - seamless and secure user experience. Additionally, the constant need for users to remember and input passwords, along with the vulnerabilities associated with OTPs, can affect customer retention rates.

Marketers strive to enhance customer retention rates; it becomes essential to reassess traditional methods. The logic is simple: if the user finds logging into your website easy and hassle-free, they will likely visit more, ultimately boosting customer retention rates. This is where passwordless authentication comes into the picture.

You can maximize the lifetime value of each customer, and passwordless authentication is one of the strategies that reduce customer friction. Let’s learn how passwordless authentication for customer retention is one of the best tools marketers can use to easily retain existing customers and build new customers.

What is Passwordless Authentication?

Passwordless authentication is an authentication method where users can access an application or website without entering passwords. It involves implementing push notifications, magic links, biometrics, and QR code authentication to ensure seamless login without compromising security.

According to a recent Oxford University study sponsored by Mastercard, an impressive 93% of consumers express a preference for biometric authentication over traditional passwords. This strong consumer inclination underscores the demand for more convenient and secure **passwordless authentication for customer retention. **


To explain how passwordless authentication can improve the user journey, here is an example: a remote user must tap the fingerprint sensor and enter the one-time, short-lived SMS code sent on their phone to access a mobile application.

It is an example of a situation when passwordless authentication is used with multi-factor authentication, where users need to provide multiple pieces of evidence to log into their accounts. From a user's point of view, it becomes easy to log in and access the account without entering passwords.

Why Should Digital Marketers Think Beyond Passwords & OTPs?

Traditional OTPs and passwords pose significant challenges for businesses aiming to enhance customer retention rates. The downsides of OTPs and passwords are becoming increasingly evident, with issues such as user fatigue, security vulnerabilities, and the rising threat of Account Takeover Fraud.

Also, users are juggling between different websites, and remembering passwords for each is a hectic task. Marketers understand that it can affect customer loyalty when customers face difficulty recovering their accounts or resetting passwords. It drives away existing customers and increases operational costs for new customer acquisition efforts.

Passwordless authentication for customer retention is crucial to enhance user satisfaction by assuring your user seamless login without the risk of security. Now, what are the benefits of passwordless authentication?

Benefits of Passwordless Authentication

Here are the key benefits of passwordless authentication:

  • Increases conversion rates

Passwordless authentication contributes to a superior user experience as compared to competitors depending upon traditional authentication methods. It is easier to set up, simplifying user onboarding. Additionally, it increases conversion rates by reducing annoyance with the authentication process.

  • Guarantees seamless access

Passwordless authentication assists the users to log in without requiring them to remember passwords. It ensures that users log in without any distractions. For example, resetting passwords to access their eCommerce account can force users to return later. However, with biometric login, users can quickly access their accounts and continue shopping.

  • Enhances accessibility and inclusivity

Users with disabilities, who may face challenges in creating and remembering complex passwords, benefit from the simplicity of passwordless methods like biometrics or email magic links. This inclusivity not only broadens the user base but also aligns with the principles of designing applications that cater to diverse needs.

  • Assures users of secure login

Many users take risky shortcuts, like keeping the same passwords for multiple accounts, using simple passwords, and writing passwords in a diary or sticky notes. Now, all these methods can lead to data breaches. However, users can securely access their accounts with passwordless authentication methods.

  • Lowers long-term costs

While there may be upfront investment, passwordless authentication pays off over time. It lowers costs associated with security breaches, offers better scalability as organizations grow, and simplifies IT operations by reducing the need to issue, secure, rotate, reset, and manage passwords.

  • Ensures compliance with regulatory bodies

Passwordless authentication aligns with industry standards for access controls to protect sensitive data environments. It goes beyond traditional measures by preventing broken authentication attacks when combined with secure session management and automatic bot detection.

Wrapping Up!

Adopting passwordless authentication for customer retention not only as a security enhancement but as a pivotal force for marketers to elevate user experience. The seamless user journey, combined with elevated security protocols, positions passwordless authentication as a game-changer.

Marketers can utilize passwordless authentication to nurture leads into potential clients and build lasting relationships. The ultimate goal is to keep the end user happy, and in this competitive digital landscape, passwordless authentication emerges as a strong tool for achieving business goals. You can give what the consumer wants - a seamless, low-friction passwordless login experience- and Login Radius experts can help implement passwordless authentication with a customizable and fully configurable solution.


Deepak Gupta

Written by Deepak Gupta

Deepak is the CTO and co-founder of LoginRadius, a rapidly-expanding Customer Identity Management provider. He's dedicated to innovating the LoginRadius platform. He loves foosball and winning poker games!

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