How can enterprises measure the ROI of adopting passkeys?

How Can Enterprises Measure the ROI of Adopting Passkeys?#

Enterprises can evaluate the return on investment (ROI) of adopting passkeys by analyzing both the cost savings and the long-term benefits. Here’s a step-by-step guide to calculating ROI:

1. Cost Savings#

• Reduced SMS OTP Expenses: Calculate the reduction in SMS authentication costs, which can decrease by up to 90% with passkeys.
• Lower Account Recovery Costs: Measure savings from reduced customer support tickets related to password resets or failed SMS deliveries.
• Fraud Prevention: Quantify the financial impact of reduced phishing and credential stuffing attacks, which passkeys mitigate.

2. Operational Efficiency#

• Fewer Support Interventions: Assess the decrease in support team workload for account recovery and troubleshooting authentication issues.
• Faster Logins: Evaluate the time saved in user authentication, especially for large user bases, and its impact on productivity and user satisfaction.

3. Increased User Retention and Conversion#

• Improved UX: Enhanced login experiences lead to higher user retention rates, reducing churn and increasing revenue.
• Seamless Onboarding: A simplified authentication process can boost new user sign-up rates, directly contributing to growth.

4. Regulatory Compliance Benefits#

Avoid penalties and fines by meeting cybersecurity regulations such as NIST, GDPR, and Essential Eight, which mandate strong authentication methods like passkeys.

5. Long-Term Financial Gains#

• Customer Trust and Loyalty: Improved security and UX build trust, resulting in long-term customer loyalty and increased lifetime value.
• Scalability and Adaptability: Passkeys integrate seamlessly with evolving technologies, reducing future migration costs.

Calculating ROI#

To calculate ROI:

1. Add the total savings (e.g., reduced SMS costs, fewer support interventions).
2. Include revenue gains from increased user retention and conversion.
3. Subtract the initial implementation cost of passkeys.
4. Divide the net benefit by the implementation cost to determine ROI.

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