Forter has published the second annual Consumer Trust Premium Report. Based on an independent survey of more than 2,000 consumers located in the US and the UK. The report finds a strong connection between trust and the amount that consumers spend.
Where UK shoppers trust a brand, 48% are willing to spend more, up 44% from 2023. Overall, respondents are 51% more likely to spend on brands they trust (up only 1%). However, UK consumers trusted brands less than a year ago, with only 7/10 trusting brands, down from 8 in 10.
Michael Reitblat, CEO and Co-Founder of Forter, commented, “The digital experience impacts trust more than retailers may think, whether with complicated check-outs, unfriendly policies, or other shopper friction. By treating their shoppers like people – instead of bots or bad actors – retailers can secure higher average order values and stronger customer lifetime value.”
Friction decreases Trust
One of the insights in the report, and has been seen in many other reports, is that friction for consumers degrades trust. 77% of consumers who find the checkout process complex will abandon their cart; worryingly. There is no improvement from last year’s report.
Friction can take many forms, from multistep processes to shipping fees, especially when obfuscated to the end of the process. The report cited the top three causes of UK consumer friction as:
- 52% abandoned their shopping basket outright due to shipping fees
- 31% after experiencing a complicated checkout process
- 22% when they were required to create an online account
While many retailers use the additional step to validate customers, complex verification processes can lead to cart abandonment (18%).
On a more positive note, shoppers identified how they select a brand. Citing:
- Shipping Policies (93%)
- Discounts & Promotions (91%)
- Return Policies (89%)
The report studies the importance of policies and also highlights that retailers have reason to be optimistic about the upcoming holiday season. 48% of UK consumers indicated they were going to spend the same or more with brands they trust. However, flexible payment options are critical for success, with 72% indicating that varied payment options are important.
The challenges with payment
While fewer consumers have declined in the last 3 months (33%) compared to 2023 (35%), generation Z has a less positive experience. 54% of of Gen Z have been wrongly declined, though this is down from 60% in 2023.
They are also experiencing poor customer service(29%) and seem to suffer more from data breaches. However, the report does not dive into why this might be the case. Gen Z faces the greatest challenges around loyalty points being stolen (18%) and experiences of a difficult returns policy (30%) compared to others.
The result is that Gen Z consumers have a lower trust in brands (6/10) than the UK average. Considering it is this generation that will likely have the buying power in years to come, retailers must aim to resolve these issues.
Social Shopping is Growing
Another trend identified in the report is that social platforms are seeing increasing engagement for retailers. 89% of UK respondents have made purchases on platforms like TikTok and Instagram. The percentage is despite the concerns around security when doing so. 38% of UK consumers do not trust their personal information is secure when using such platforms.
Enterprise Times: What does this mean?
The report summarises the key take-outs from this report by saying, “Building trust directly translates to wallet share.”
Usefully, it shares 4 actions for Consumers and four for Retailers that will help build trust. For retailers, the take-outs are obvious:
- Invest in Trust-Building Measures
- Minimise Friction Across Transactions
- Enhance & Secure Loyalty Programs
- Adapt to Evolving Consumer Preferences
The report details what is meant by these, and with the Forter platform in place retailers can help build trust bidirectionally.
Reitblat concluded, “Every major retailer is future-proofing their business to thrive in an uncertain economic environment with unpredictable consumer behaviour. One of the biggest changes they can make is to invest in knowing who their good customers are so that they can deliver tailored experiences and build lifetime value through mutual trust.”
