Social Login: The Retail Game Changer

Whether a visitor to your website is coming directly from a social network or is just one of the millions of people who make social a part of their daily lives, offering the option of signing in with a social login (e.g., Facebook or Twitter) as an alternative to filling out a form has clear benefits. A Blue Research study revealed that three out of every four internet users leave a website rather than take the time to register a new account.

In addition to improving the user experience and removing a barrier to list growth, offering social sign-in options has the potential to impact both the amount and accuracy of data that retailers can collect. Here's how:

Increases opt-in rates by making the process easier: Offering social login reduces the number of required fields visitors must fill out, leading to a reduction in form abandonment. Companies that have implemented this option have seen conversions increase between 10 percent and 50 percent.

Increases amount of data: With social login, retailers have access to lots of information they may have wanted in the past but lacked an obvious way to collect. Some social sites provide a lot of information while others provide just a little. Regardless, the net result is that you'll capture useful data right out of the gate that might have taken you several form fields and a year's worth of time to capture in the past.

For example, you may have wanted to capture gender and ZIP code data, but were hesitant to ask for this information at opt-in because of fear of form abandonment. With social login however, you can gather this data and be able to deliver more relevant content based on a consumer's gender and location.

Increases accuracy of data: By offering social login, you're likely to get more accurate data because you're removing a barrier for people who want your offer but don't want to fill out a long form, while also reducing the inflow of inaccurate data. According to the Blue Research study, 88 percent of consumers admit to providing false registration information on traditional registration forms.

For example, a chain retailer may ask for state and ZIP code information, and consumers may select any state from a drop-down menu or type in 12345 for their ZIP code to get through the registration process quickly. If data is captured accurately, however, the retailer might suddenly know if new subscribers are located near specific retail stores and could then use this data to promote a location-based marketing program.

Social login provides a valuable opportunity for retailers to interact with customers and prospects on their terms. Retailers should be keen on not missing out on this opportunity to integrate social media into their communications and gather valuable data while doing so.

Loren McDonald is the vice president of industry relations at Silverpop. Loren can be reached at lmcdonald@silverpop.com.