Forter, a Trust Platform for digital commerce, has 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 U.S. and U.K.
Coined the “Trust Premium,” the report revealed U.K. consumers surveyed are now willing to spend 48 per cent more, on average, with retailers they trust – up from 44 per cent in 2023. Despite the impressive Trust Premium uplift, these consumers in the U.K. ranked their overall trust in online brands a 7/10 – down slightly from 8/10 in Forter’s 2023 Consumer Trust Premium Report.
“The digital experience impacts trust more than retailers may think, whether with complicated check-outs, unfriendly policies, or other shopper friction,” said Michael Reitblat, CEO and co-founder, Forter. “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 U.K. consumers continue to face challenges shopping online. Fifty-four per cent of Gen Z consumers surveyed in the U.K. have been wrongly declined in the last three months, compared to an average of 33 per cent 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; Trust Isn’t Certain
Emerging shopping platforms, such as social commerce, are booming in popularity, especially among younger generations. The report found that 89 per cent of all U.K. respondents have made purchases through social media platforms such as Instagram and TikTok, compared to 99 per cent of Gen Z.
However, 38 per cent 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 use friction to validate good shoppers – and keep fraudsters at bay. But the report found that friction continues to cost retailers money at alarming rates.
More than three-quarters (77 per cent) of U.K. respondents say they are likely to abandon their purchase if the checkout process is too difficult or time-consuming, in line with last year’s findings.
In the last three months alone, almost one-third (31 per cent) have abandoned their shopping baskets due to a complicated checkout process, and more than one in five (22 per cent) have done so because they were required to create an account.
In light of regulations such as PSD2, 60 per cent of U.K. consumers surveyed say they have experienced additional verification methods such as one-time passcodes in the last three months, leading 18 per cent to abandon their purchase.
Unfriendly Policies Cause Good Customers to Quit
Despite having a strong influence on where they shop, Forter’s report revealed that many returns and shipping policies do not meet customer expectations. Eighty-nine percent of U.K. respondents said a retailer’s returns policies are important when deciding where to shop, and 93 per cent said shipping policies are a key factor. However, 52 per cent of consumers have abandoned a cart in the last three months due to high shipping fees and 22 per cent have done so due to restrictive returns policies.
“Brands are future-proofing their businesses to thrive in an uncertain economic environment with unpredictable consumer behaviour,” said Reitblat. “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.”
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