By
Bill Walls
Bill Walls on April 1, 2014

Are Social Media Logins Good or Bad For Business?

Are Social Media Logins Good or Bad For Business?

Social Media

You've probably seen social media logins almost everywhere these days. But are they a good idea or not?

Target Consumers Better with Social Media Logins

Before we answer that question, there are a lot of people who are still a little fuzzy on exactly what it is. If you have ever bought something online or need to create an account on a website, you may have been asked to create that account using one of your social media accounts. (See image below) Using your social login information connects that social media account with the new account you are creating, and a transfer of information occurs. Whatever information you have in your profile will usually be transferred to the new account.

Approximately 91% of all consumers who have used a social media login, love it. For one thing, it makes life a whole lot easier. You only have to remember one login to access all your other online accounts. Consumers are more likely to return to a website that remembers them without having to remember how to login. They would also make more purchases online using their mobile devices, if social media login was made easier.

social-media-login

From a marketing perspective, it gives marketers additional tools with which to personalize content aimed at their interests. Especially, for eCommerce sites that really need to focus on buyer behavior, interests and purchases.

Since 96% of consumers say they have received mistargeted information or promotions from marketers or businesses, according to a study performed by Janrain, then it makes sense to use social logins to ensure you’re getting the information.

Consumers Are Getting Fed Up!

As consumers are getting more and more fed up with receiving information they don’t want, they are able to unsubscribe, mark you as spam, visit your website less frequently and ultimately buy less of your products. Social logins help deliver the profile data that enables desirable personalized experiences. So, from a consumer and marketers stand point, it seems like a win win situation.

Not So Fast!

As a business, you will be able to funnel the right information to your consumers, but do they want you 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 correctly
  • Consumers think you may spam them or the people they are connected to
  • They think you will post to their social feeds
  • They worry about someone hacking their social media site and getting their login and password information

It’s easy to see that the largest drawback for social logins is trust!consumer-trust

Ensuring that you have a strict policy on how a person’s information is handled will help a great deal. Unless, of course, you bury it in a mile-long terms and conditions page. If a consumer has never done business with you before and you don’t have the clout of a big brand name like Amazon, then transparency about how you use their information is vital. You should also allow a simple email and password option for logging in or creating an account.

What About Hackers?

One of the major arguments consumers have for not using social logins is the possibility of someone hacking into their account and getting their login and password information. Again,this is a trust and confidence issue, based on the level of trust you have as a business in the marketplace. In the minds of consumers, this could lead to catastrophe as they watch their other accounts get penetrated.

FacebookHackedOnce you have their information, following through with targeted communications, offers, and product information will ensure you keep that customer. Deviate it from it, and you run the risk of losing them. Remember, they are only a click away from unsubscribing!

So, is it a good idea or bad idea? The recent Target fiasco may suggest that it’s a bad idea. Can you really trust businesses that take your personal information and keep it safe? Bloomberg TV has a great segment about what actually happened in the Target debacle.

The answer to the question from a business and marketing perspective is yes. However, from a consumers standpoint I believe the jury is still out. People who do not trust the systems in place will use password security programs, like Dashlane and Password Genie, to secure their login information. Others who like the convenience of using just one or two logins, along with the connection they have between the products and services they purchase and the subsequent information they receive afterwards, will use social media logins with no hesitation.

The Times They are a Changin!

The times are not just changin, they've changed! The average consumer is bombarded with anywhere between 3,000 to 20,000 marketing messages per day. (The larger number include supermarket labels, clothes labels, etc., whether you see them or not) Our brains cannot process that much information. If we are not interested in the message, it’s in the trash. 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.Request an Inbound Marketing Assessment

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Bill Walls

Bill is the CEO and Founder of InTouch Marketing. Bill drives the vision and direction of InTouch except when England's playing in a soccer tournament, because everything stops!