Forter has launched its inaugural 2023 Consumer Trust Premium Report. The research explores how consumers truly feel about their online shopping experiences. The report analyses the relationship between consumer shopping habits, their experiences, and brand trust, as retailers approach the Christmas shopping season.
The report polled 5,000 global consumers aged 18+ who have at least two active eCommerce accounts. Furthermore, these respondents shopped online at least once in the last three months. 1,000 consumers were based in the UK.
The trust Premium
The biggest factor for the next generation of shoppers is trust. The research suggests trust is a precious commodity that must be earned. 69% of those surveyed say that more than half of their shopping is done online. Consequently, the spending power of the next generation is growing — and it will be spent with the most trusted brands.
Coined the “Trust Premium,” consumers are willing to spend 46% more on average with a retailer they trust. Furthermore, depending on the region and demographic a retailer serves, the Trust Premium may be higher. Forter suggests that at a time when consumers are cutting spending, trust can make or break the bank for retailers.
Despite some negative experiences, consumers are still surprisingly trusting of retailers. When asked how much they trust the retailers they’ve shopped with, the average respondent rated them 8 out of 10. This disparity between consumer trust and experience underscores trust’s crucial role in the relationship between retailers and their shoppers.
However, this is not in the way individual consumers may have thought. The report says harnessing and realising the full potential of the Trust Premium is a responsibility that squarely rests on the retailers.
A seamless checkout experience is one of the most essential pieces of building trust with consumers. While many shoppers enjoy the hunt — that is, browsing for goods to put in their cart – when it comes to checkout, time literally equals money. 77% of consumers report abandoning a purchase altogether if the checkout experience is anything less than perfect.
Other Key technology and data security findings include:
- UK consumers are willing to spend 44% more on average with a retailer they trust – coined ‘The Trust Premium’.
- 89% of UK consumers stated it was important to have secure checkout/protection of personal data. This helps determine their trust in a retailer.
- 8% of UK respondents stated their personal data was compromised in a data breach as a factor that negatively impacted their shopping experience.
- Amongst UK consumers, online scams are the most prevalent, experienced by 15%. This is followed by data breaches (12%), credit card fraud (12%), and identity theft (9%).
- 73% of UK respondents have suffered a negative online shopping experience.
- 20% of UK consumers found that poor user interface/mobile application negatively impacted their shopping experience.
Ensuring efficiency and effectiveness in fraud prevention provides consumers with a secure, efficient consumer experience and fuels revenue growth.
Younger shoppers face the most friction in online shopping for various reasons – from smaller digital footprints to fewer proof points for retailers to trust. Millennials and Gen Z are up to four times more likely to be falsely declined at checkout and up to 10 times more susceptible to having their information compromised in data breaches (compared to Gen X and Baby Boomers)
The Global perspective
US – Facing Friction
US-based consumers face higher false decline rates (56%) than any other region. One likely reason they’re willing to spend 56% more with trusted retailers.
Germany – BNPL options
German-based consumers differ primarily from other regions in their favoured payment methods. The research indicates 30% say they prefer Buy Now Pay Later (BNPL) over traditional methods.
Singapore – Earning Trust
Singapore-based consumers face high rates of false declines (48%) and potential security breaches (22%). Additionally, they are willing to spend 48% more with brands they do trust.
China – Checkout Priorities
China-based consumers highly value seamless checkout experiences – with 84% willing to abandon carts at the first sign of friction.
Enterprise Times: What this means for business
This is another interesting report from Forter, with the key learning from this year’s report being trust. Trust lies at the heart of the consumer-retailer relationship. Clearly, the shoppers of tomorrow are placing more value on trust than any previous generation. This is particularly the case with the younger generation.
These lessons are in line with similar reports from analysts and other industry players. However, building trust requires effort from both sides. And while consumers seek trustworthy retailers, retailers must gain the confidence to trust their consumers.
Forter correctly suggests brands that win the next generation of shoppers will provide fast, frictionless and fraud-free shopping experiences. As a result, they will establish mutual trust with their consumers. Perhaps the only missing ingredient from the report is the use of more case studies to illustrate the valid points raised in the report.