If your new users onboard with a mobile device, you’re very likely losing 20-30% of that potential new revenue every single month. But the good news is there is now a solution.
COVID-19 has accelerated the migration of business to online. But online now primarily means mobile, and that creates a whole set of challenges which most businesses have not even begun to address. Take onboarding, for example. Time and again, businesses tell us that when they look at the numbers, trying to onboard customers on mobile typically results in 20-30% customer drop-off at registration – whether via app or mobile web.
Those are big numbers with serious implications – not only in reduced revenues, but very likely also in increased customer support costs and potential damage to your brand from negative reviews on social media. Altogether, a terrible business result. But if you simply remove the barriers to onboarding, you’ll spend even more money dealing with fake accounts and fraud.
In this article we’ll explain briefly how to calculate these losses you may not have factored in, the reason users drop off, and the consequences for your business. We’ll then show you an alternative solution that fixes the issue of leaky onboarding in a way that removes user friction compromising on secure authentication....
If you have good analytics, it’s an easy calculation (using the low-end figure):
Lost Revenue per annum = New Monthly Signups * 20%/80% * ARPU * 12
Here’s a worked example:
- New monthly signups: 1,000
- ARPU (Average Revenue / User / Month): £25.00
- Lost revenue per annum = 1,000 * 20%/80% * £25 * 12 = £75,000
You can check the exact numbers for your own business using our free online ROI calculator.
Digital identity and authentication grew up in a desktop world, but today mobile is the primary way most people access the internet. However, what worked on desktop often doesn’t work well for mobile. Authentication methods that (sort of) worked for desktop are simply no longer fit for purpose, which is why you are likely to be leaking potential customers at such an alarming rate.
For example, a new customer trying to register on a desktop or laptop might have to type an email address, wait for a verification email, then retype a PIN code and enter a password. This is workable – just about. But on mobile, where we all live now, this is an incredibly frustrating and unnecessarily lengthy experience.
Worse still is the additional SMS verification we all have to go through because passwords are not secure. Even on a desktop, it’s a very poor experience to have to pick up your mobile, wait for an SMS, get the PIN code, then retype it. But on mobile, this is a complete UX disaster – one that many of your potential users will quickly decide isn’t worth it.
All this authentication complexity leads to user frustration, which translates directly into abandonment – and indirectly into higher support costs and negative posts on social media. If you are using SMS PIN codes, this can also lead to big fraud problems. It all adds up...
Lost revenues due to:
Support costs due to:
Fraud costs due to:
You can now avoid all of these problems by switching to SIM-based authentication from tru.ID. For the first time, you can improve conversion and customer satisfaction while also reducing your risk of fraud.
We use the best possession-factor your customers have – the SIM card in their phone. Together with the cryptographic security built into mobile networks, this delivers seamless, secure, private authentication that is easy to use and fast to deploy.
Seamless UX: For a user, the approach is extra simple – just type your number and it will be verified instantly, in real time, with no further action required: no email to enter, no SMS to wait for, no PIN code to retype.
Powerful security: The solution is also far more secure than legacy approaches. A SIM card comes with impenetrable cryptography and is the same piece of highly secure, scalable and proven microcomputer technology that you can see in every credit card.