By Elizabeth Dwoskin
Facebook Inc. and Google Inc. are battling to be the gateway
through which users connect to websites and mobile apps. But users
and businesses may be losing interest in such "social login"
services.
Consumers worry about broadcasting their preferences and habits
to companies and across their social networks. Businesses are torn
between making life easier for users and letting Facebook and
Google see the resulting data.
"A few years ago, there was a frenzy, but the interest has
peaked," says Sucharita Mulpuru-Kodali, an analyst at Forrester
Research who studies social login. "There's the fear of, 'Oh my
God, I'm going to click something and God knows what's going to
show up on my Facebook wall.' "
Facebook created Facebook Connect in 2008, and later changed the
name to Facebook Login. App makers have found it useful in
attracting users, who are spared the hassle of registering their
credentials. Meanwhile, Facebook learns more about what its users
did elsewhere on the Web. Google followed suit with Google+ Sign-In
in 2013.
The social login buttons allow consumers to log in to other
websites and apps using their usernames and passwords, for example,
from Facebook Login or Google+.
But a Forrester survey of 66 large and midsize companies finds
that only 17% use social-login buttons, and more than half have no
plans to do so. Forrester hadn't previously done a similar survey,
but Ms. Mulpuru-Kodali says social login offerings are no longer
appealing to retailers and users.
The plateau for social-login offerings highlights the challenge
of establishing digital identity and Silicon Valley's repeated
efforts to put itself at the center. As long ago as 1999, Microsoft
Corp. offered Passport, which included a username, password and
wallet enabling users to register and buy goods across the
Internet. Amid consumer indifference and privacy lawsuits,
Microsoft stopped offering a universal sign-on service in 2006.
Others, including Yahoo Inc., Amazon.com Inc., and Twitter Inc.,
have their own social-login buttons, which have attracted few
followers. Yahoo recently banned other companies' login buttons
from its Web properties, dramatizing the competition.
Establishing digital identity is increasingly urgent as screens
shrink, passwords multiply, and businesses seek ways to reach
people on their smartphones and to recommend products based on
users' habits.
Today, when users first log in to a website or app using
Facebook Login or Google+, they're asked about the data they are
willing to share, including profiles, contact lists and "likes."
Google+ users can also add their Google Wallet information and
YouTube preferences.
Businesses whose core products are built around an app, such as
hotel-booking site HotelTonight, say one-click sign-in is a huge
benefit on a smartphone's small screen. People "are happy with the
option of bypassing a lengthy form," HotelTonight Chief Executive
Officer Sam Shank said of Google+ Sign-In. "What matters is making
the transaction as seamless as possible." HotelTonight also uses
Facebook Login.
Facebook says its service is gaining popularity, and is used by
80 of 100 top-grossing smartphone apps in the U.S. Google has
described its login button as a potential replacement for browser
cookies, which can be inaccurate and don't extend a user's identity
to smartphones.
Both companies are shifting their social-login strategies.
Facebook recently said it would begin to offer anonymous logins, a
response to privacy concerns. The head of Google+ recently stepped
down amid signs the social network isn't popular with users.
"We've gotten feedback," said Eddie O'Neil, product manager for
Facebook Login. "We first heard from people that they want more
transparency, second, more control."
Some users remain wary. "I don't want everyone in my social
network to know what I'm shopping for," said Rebecca Silliman, who
works in marketing for an e-commerce company in San Francisco. "I
feel like every time I give permission, I'm probably giving away
more than I'm ultimately comfortable with."
Likewise, many businesses, particularly brick-and-mortar
retailers, are conflicted.
Login buttons "are a great concept," said Eric Singleton, chief
information officer for women's clothing retailer Chico's FAS Inc.,
which is considering including social logins in its planned
smartphone apps. Mr. Singleton said Chico's wants to offer
personalized recommendations to shoppers, which could vary by
location and time of day.
Social logins could help, Mr. Singleton said, but he is
concerned with Facebook's mixed record of protecting consumer
privacy. Chico's is internally testing Google+ Sign-In, but Mr.
Singleton is worried about the technical challenges of connecting
to Google's system, and whether it would bring Chico's the type of
data it's looking for.
When Google approached Macy's Inc. about using social login in
the spring of 2013, officials at the retailer were concerned that
Google would gain access to data, such as how often shoppers bought
jeans or housewares on Macys.com, according to a person familiar
with the matter.
Google said it doesn't collect such data. Macy's asked to see
the computer code that would be placed on its website by Google,
but Google declined, according to the person familiar with the
matter. Macy's, which hasn't adopted the login, declined to
comment. Google declined additional comment.
Others wonder what the fuss is about. When real estate website
Zillow Inc. added a Facebook login button more than two years ago,
CEO Spencer Rascoff thought it would make life easier for users who
would no longer need to remember a Zillow password. But he said
about 15% of visitors used the Facebook login, fewer than he had
expected.
Mr. Rascoff speculates the people could be concerned they might
inadvertently share with their social network a house they looked
at on Zillow. Facebook says that such sharing could only happen if
users agreed to share preferences with friends.
Frank Hamlin, executive vice president of marketing for Guitar
Center, said that adding social login buttons from Google and
Facebook last year helped attract younger customers, but the
numbers are small and haven't translated into sales. "There's
definitely value in the data, but not demonstrable revenue," he
said. "It hasn't moved the needle on the business."
Rolfe Winkler contributed to this article.
Write to Elizabeth Dwoskin at elizabeth.dwoskin@wsj.com
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