For those that may not be close to tech, the rise of 2FA (aka “two factor authentication”) has impacted nearly all users of software — both desktop and mobile — over the past several years.
What is 2FA?
Still not clear what it is? 2FA is the feature in your banking mobile app that text messages you a code after logging in. Or, when logging into your favorite online shopping site, emails you a 6-digit code to copy and paste.
These 2FA services are all about ensuring login confidence and preventing ID theft.
For subscription business sales teams, though, it’s had an unexpected benefit. And especially those businesses that monetize on a per user basis.
For those in the SaaS world, you’ll know that monetizing on a per user basis isn’t necessary in vogue at the moment. It’s often thought of as “the old way”. Charging based on how much your product is used, or usage-based pricing, has taken hold as the next generation monetization model, primarily due to its ability to charge the customer fairly and proportionally to the value derived at any given moment.
But some businesses, especially information/data/intelligence businesses, where even a little bit of information can have significant positive impacts for a user, are connected to per user pricing and find it very difficult to switch monetization models.
And for information businesses, traditionally, sharing of account details between different users has been a constant headache. Imagine one organization sharing one account with 10 users — that’s a 90% reduction in potential revenue. IT HAPPENS ALL THE TIME.
The Impact of 2FA
2FA has changed all that. Now, account uniqueness is enforced by the 2FA system itself. No more password sharing. No more “cheating the system”.
For businesses that are leveraging 2FA for their per user models, it is very likely they will see double-digit revenue gains from its implementation. And for business leaders looking for growth, use of 2FA is a rare opportunity to find guaranteed acceleration.
Admittedly, I have a B2B bias here. But don’t think the B2C solutions aren’t thinking about use of 2FA themselves.
For all those sharing Netflix accounts around their family…be careful. You might find yourself in the position of a forced purchase in the not, too distant future.