Half of American consumers say they don’t bother completing an e-commerce transaction if it can’t be completed quickly, according to recent research from international fraud protection provider CleaSale.
Based in Miami, ClearSale commissioned Sabio Research to survey 1,000 frequent online shoppers in the U.S., Canada, the U.K., Mexio and Australia. The results were published in its 2021 Global Ecommerce Consumer Behavior Analysis report, which was released earlier this week.
The study reinforced common perceptions about the shift toward digital customer experiences, with 78 per cent of all consumers saying they feel as safe or safer shopping online than in stores. There is also an increased willingness to browse beyond their own borders. More than half, or 52 per cent, of all consumers order from overseas merchants as well as in-country retailers and 50 per cent are most likely to shop on a phone or tablet, ClearSale said.
Given the vendor’s focus on fraud, a lot of the data explores consumer attitudes and fears around risks such as identify theft, and what level of protection they expect as part of the e-commerce experience.
“Americans, for one, value convenience but are willing to accept some electronic monitoring and assessment as they shop if it keeps them safe. Most even say they’re OK with using two-factor authentication,” the report’s authors noted.” Requiring registration prior to checkout, however, is where many shoppers draw the line. If you ask Australian or American shoppers to create an account, they are more likely to jump ship (or abandon cart).”
Thirty-eight per cent of American respondents, for instance, said they abandoned a transactions when asked to register with the brand’s site. The No. 1 reasons U.S. online shoppers walk away, however, is trust: 61 per cent said they had abandoned a purchase because they didn’t feel comfortable giving the brand their credit card data.
360 Magazine Insight
If you’re developing or trying to improve CX in an organization or sector where fraud concerns are high, there is plenty of information in the ClearSale report to help make the business case for its protection services. However the report is also interesting for the picture it paints of consumers transitioning their behaviour from in-person to digital shopping.
For instance, only 40 per cent of those surveyed said they had their credit card within reach when they were making an online purchase. How might the extra effort required to get up and go get your wallet affect the likelihood for a conversion? More importantly, what could brands do (other than embrace mobile payments, which is what the report recommends) to nudge or remind consumers to get their wallets earlier in the process?
Beyond insights from ClearSale, the report (which is ungated) includes quotes and commentary from CX executives at Oracle, which drill down into some of the e-commerce opportunities and challenges that may play out among different industries. These include fashion and luxury, travel and automotive.
Longer-term, fraud will likely have to reach epic levels before it becomes fundamental to delivering outstanding CX. More likely it’s simply a customer expectation — something that, as e-commerce activity continues to increase — they’ll want to take for granted.
Shane Schick tells stories that help people innovate, and to manage the change innovation brings. He is the former Editor-in-Chief of Marketing magazine and has also been Vice-President, Content & Community (Editor-in-Chief), at IT World Canada, a technology columnist with the Globe and Mail and Yahoo Canada and is the founding editor of ITBusiness.ca. Shane has been recognized for journalistic excellence by the Canadian Advanced Technology Alliance and the Canadian Online Publishing Awards.