Are Social Media Logins Good or Bad For Business?

As the internet has grown, more people are making it part of their everyday lives - using it to keep in touch with others and “running errands” through online shopping.

There are no indications using the internet to purchase items is slowing down, with the forecast showing that by 2021, more than 2.14 billion people worldwide are expected to buy goods and services online. That’s up from 1.66 billion global digital buyers in 2016.

It should be no surprise then that two of the most popular reasons to jump online - social media and shopping - has integrated through social media logins. 

But are social media logins good or bad for business? Here are some questions you may have about whether your business should get on board.

What Exactly Are Social Media Logins?

If you have ever bought something online where you have needed to create an account, and were offered the opportunity to use one of your social media account to create that account, you’ve used a social media login.

Using your social login information connects a social media account with the new account being created, and a transfer of information occurs.

In most instances, whatever information you have in your profile will be transferred to the new account.

Is It Really That Popular?

Yes! You’d be hard pressed to find a major consumer brand NOT offer this option for their customers. 

For one, it makes it a whole lot easier for online shoppers. Why? You only have to remember one login to access all your online accounts. Consumers are then more likely to return to a website that remembers them without having to remember their login information.

In fact, research shows 86% of users find creating new accounts on websites as inconvenient. Software developer Monetate also reports 40% of consumers PREFER to use social logins. 

Especially with younger demographics, users expect a seamless online experience. If they are forced to fill out a time-consuming form and come up with a username and password that fits a long list of requirements, they might abandon their online cart and head for another site.

Even if you make it through the registration process, there’s the problem many people face when they forget their password - and who hasn’t done that? The ability to socially login dramatically reduces the number of times you’ll have to ask for a password reset.

What Benefit Does It Provide For My Business?

From a marketing perspective, offering a social media login gives marketers additional tools with which to personalize content aimed at the interests of their buyers. This is especially true for eCommerce sites that really need to focus on buyer behavior, interests and purchases. 

In fact, according to a study performed by Janrain, 96% of consumers say they have received mistargeted information or promotions from marketers or businesses. 

This is an enormous waste of your marketing budget and efforts, and all the more reason to use social logins to ensure you’re getting the right information.

Why Is This Important?

Ensuring you’re getting the right information is extremely important to customer satisfaction. In fact, consumers are getting fed up with receiving information they don’t want or are unable to unsubscribe.

What does this lead to? Marking you as spam or visiting your website less frequently ultimately leads to buying fewer of your products.

Social logins help deliver the profile data that enables desirable personalized experiences. From both a consumer and marketing standpoint, it’s a win-win situation.

Why Do Some Consumers Avoid Social Media Logins?

As a business, you will be able to funnel the right information to your consumers. The question many wonder, however, is... Do consumers think you are poking your nose in their business?

Some of the primary reasons why consumers are hesitant to use social media logins are:

• Consumers don’t trust the company to use the information gathered correctly.
• Consumers think you may spam them or the people they are connected with.
• They think you will post to their social feeds.
• They worry about someone hacking their social media sites and getting their login and password information.

It’s easy to see that the largest drawback to using social logins is the trust needed on both sides for it to work!

Here’s how to solve this problem:

• Ensure you have a strict policy on how a person’s information is handled.
• Don’t bury this policy in a mile-long terms and conditions page. Make this policy easy to see, and keep it short and to the point.
• Allow a simple email and password option for logging in or creating an account.

If a consumer has never done business with you and you don’t have the clout of a big brand name, then transparency about how you use their information is vital.

Is It Safe?

In today’s online world, hackers are a valid concern. 

Consumers are so concerned that one of the major arguments they make for not using social logins is the possibility of someone hacking into their accounts and getting their login and password information. 

There’s also concern among consumers that their information will be used improperly or sold to other companies. Again, this is a trust and confidence issue, which is why it’s important that you are up front with customers and let them know exactly what you plan to do or won’t do with their data, and what precautions are in place to secure it.

So, Should I Offer It?

From a business and marketing perspective, absolutely.

But, it’s important that once you have their information, you follow through with targeted communications, offers and product information that will ensure you keep customers and not risk losing them. 

Remember, they are only a click away from unsubscribing! Considering digital marketing experts estimate that most people in the United States see 4,000 to 10,000 ads per day, that’s a risk you don’t want to take.

Marketing messages have to reach their intended targets, and the more you know about that target, the easier it is to get your message seen and more importantly acted on! Social media logins are a step in that direction.