Onboarding is a critical step in any online process, and it’s a necessary step to ensure customers are who they say they are rather than scammers in disguise. The user authentication processes used to determine this are of different types, ranging from simple passwords to more complex operations, such as multi-factor authentication (MFA), background checks or advanced biometric procedures.
Some of these systems, however, may do more harm than good, as they may be ointrusive enough or too zealous to scare off legitimate customers. A 2020 study found that 63% of customers abandoned a bank application process due to slowness and time integration process, for example. Behavioral analysis appears to be a smart choice for balancing authentication and friction, as it relies on examining the information that consumers have to enter anyway, such as names and social security numbers, as well as how from which they enter this information. This probably results in a lot less friction and less customer abandonment.
August / September Monetize Digital Intent Tracker®: Using Behavior as a Service to Drive Revenue Growth explores the latest developments in the world of behavioral analysis, including the frictional dangers of preventing intrusive fraud, the risks of false positives when weeding out bad actors, and how behavioral analysis works to authenticate customers in a transparent manner.
Developments in the world of behavioral analysis
Businesses can potentially lose untold amounts of money due to excessive fraud prevention. A study found that 83% of potential customers would leave a website or abandon an online shopping cart due to complex issues. login process, in fact, 49% of them say these processes leave them frustrated and 21% say they take too long. Some companies have turned to password-based systems to streamline their logins, but these can create security risks, especially with 85% of customers admitting to reusing passwords for multiple accounts.
Smooth and seamless integration is quickly becoming a top priority for consumers. A survey by tech giant IBM found that 59% of adults expect to spend less than five minutes setting up new accounts. It also revealed that they were willing to compromise their personal cybersecurity for convenience, with 51% of them saying they would rather place an order using an insecure app or website instead. than having a more secure payment experience with a provider in person.
Businesses could claim to understand the needs of customers, but they may overestimate their capabilities. A report found that while 88% of companies agree that there is a need to understand the customer journey, only 31% of organizations say they already have such knowledge. A key tool to improve this could be behavioral analysis, as customer friction can be instantly identified and shared with UI designers.
To learn more about these and other behavioral analysis news, download this month’s Tracker.
Reduce customer fraud and friction with behavioral analysis
Preventing customer abandonment during onboarding or checkout is crucial for any business, but so is preventing fraudsters from infiltrating their systems. These goals are often contradictory, but behavioral analysis could do both without compromise.
In this month’s article, PYMNTS talks to FinTech Mission Lane chief fraud officer, Gaurishankar Gopalakrishnan, on how behavioral analytics can deliver smooth and secure experiences without forcing customers to enter additional information or take additional action.
Deep dive: Reduce customer friction with behavioral analysis
Digital fraud is a pressing and understandable concern for mmerchants, who use layered security systems to make sure their customers are who they say they are. However, many of these systems could do more harm than good, as 86% of customers report having abandoned cart due to excessive friction at some point while shopping online.
This month’s Deep Dive explores the barriers customers face in their online shopping experiences and how behavioral analytics can alleviate them.
About the tracker
The Monetize Digital Intent Tracker®: Using Behavior as a Service to Drive Revenue Growth, a PYMNTS and Neuro-ID collaboration, is the go-to monthly resource for updates on trends and changes in behavioral analysis.