New Study Finds UK Shoppers Are Willing to Spend More on Trusted Sites
October 4, 2023
Forter, a fraud prevention technology provider, recently launched its first annual ‘Consumer Trust Premium Report‘, hoping to shed some light into the experience shoppers have, their habits, and brand trust ahead of one of the most important holidays for merchants globally: Christmas.
The study consisted of 5,000 adults over 18 years old who have “two active e-commerce accounts and shopped online at least once in the last three months in the UK, USA, Germany, Singapore and China.” 1,000 of these consumers originate in the UK.
The data shows that, surprisingly and despite everyone’s wallets feeling a little bit lighter due to inflation, UK consumers would be willing to spend up to 44% more with a retailer they already trust. And 77% revealed they would abandon their online shopping carts if the checkout system is too convoluted. As UK consumers revealed that false declines are becoming a major problem.
On average, retailers wrongly declined around 35 per cent of the consumers shopping online in the UK, in the last three months alone.
On average, consumers make from 44% to 63% of their shopping online, however, younger consumers have a higher risk of getting false declines – 42% for millennials and 60% for Gen Z, while only 10% of Baby Boomers, and 24% of Gen X encounter this problem.
As a result, 93% of Gen Z has reportedly had a negative shopping experience in the last three months alone, 20% more than the other age demographics.
They emerged as four times more likely than older shoppers to have had personal information compromised in a data breach. In response, 89 per cent of all UK respondents want their personal data better protected during the checkout process.
However, consumers aren’t the only ones struggling to trust online retailers – online retailers have the same problem trusting consumers, as there is no way to be able to accurately assess the trustworthiness of every single person trying to shop at their site.
According to the study, for every $1 stolen from retailers due to fraud, retailers lose $30 by declining legitimate customers. Younger consumers have been incredibly gracious however, and forgiving, opening the door for retailers to right their wrongs and bring in the money.
Mastercard has also gone a step further by launching the Sustainable Materials Directory, an eco-friendly alternative that keeps billions of plastic cards out of landfills. It is a push that Mastercard has taken in the past, creating sustainable consumer cards to curb pollution.
With that, Mastercard moves towards an initiative desired by many consumers, who think the US government has not done enough to combat climate change.
This situation doesn’t have to continue unchecked. Balancing the importance of fraud prevention without impacting customer experience will be the next major test for retailers during the upcoming holiday shopping season.
This data highlights the importance of building consumer trust and loyalty for the long term. Especially because of the previously mentioned rising inflation. Therefore, retailers have to be willing to invest in solutions to identify who is a real shopper and who is a scammer more accurately, in order to establish mutual trust that will benefit both parties.
Want to learn more? Check out The Fintech Times’ full write-up here.
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