Forter, a trust platform for digital commerce, released findings from its 2024 Consumer Trust Premium Report, which explores the evolving relationship between consumer shopping habits and brand trust, based on 2,000 survey respondents in the US and UK.
The ‘Trust Premium’ report revealed that UK consumers surveyed are now willing to spend 48% more, on average, with retailers they trust – up from 44% in 2023. Despite the impressive Trust Premium uplift, these consumers in the UK ranked their overall trust in online brands a 7/10 – down slightly from 8/10 in Forter’s 2023 Consumer Trust Premium Report.
Officials from Forter said 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.
Younger consumers struggle with easy online shopping
Despite their growing buying power, the report found younger UK consumers continue to face challenges shopping online. 54% percent of Gen Z consumers surveyed in the UK have been wrongly declined in the last three months, compared to an average of 33% across all ages. Gen Z shoppers are also more likely to suffer poor customer service, have their online loyalty points stolen, and experience expensive or difficult returns policies.
Social commerce popularity soars but trust isn’t certain
Emerging shopping platforms, such as social commerce, are booming in popularity, especially among younger generations. The report found that 89% of all UK respondents have made purchases through social media platforms such as Instagram and TikTok, compared to 99% of Gen Z.
However, 38% of respondents do not trust that their personal information is secure when making purchases on social commerce. This poses an immediate challenge for retailers that must build consumer confidence to fully capitalise on the Trust Premium in social commerce.
The hidden cost of friction
Many retailers implement friction in the checkout process to identify legitimate shoppers and deter fraud, but this approach can lead to significant revenue losses. The report revealed that 77% of UK shoppers are likely to abandon their purchases if the checkout process is complicated or time-consuming. In just the last three months, 31% of respondents reported abandoning their shopping carts due to complex checkouts, while 22% did so because they were required to create an account.
The study also noted the impact of regulations like PSD2, with 60% of UK consumers experiencing additional verification methods, such as one-time passcodes. This increased friction in the purchasing process has resulted in 18% of shoppers abandoning their transactions. These findings suggest that while security measures are essential, they can inadvertently discourage customers from completing their purchases.
In addition to checkout issues, many consumers find returns and shipping policies unsatisfactory. According to the report, 89% of UK respondents consider returns policies important when deciding where to shop, and 93% cite shipping policies as a key factor. However, 52% have abandoned carts due to high shipping fees, and 22% due to restrictive returns policies, highlighting a significant gap between customer expectations and retailer practices.