To trust or not to trust is the ultimate question when it comes to online, card not present transactions. For e-commerce merchants and online shoppers it should be a two-way street. But far too often, a customer who should be trusted has a transaction wrongfully declined. This tarnishes their relationship with the merchant, the bank and the credit-card company, resulting in loss of revenues, interchange fees and most importantly, lifetime loyalty.
The impact of consumer action in the face of a decline can have real and measurable effects on all parties, including credit card companies, banks and merchants manifesting itself in lost revenues, lost fees and lost customer loyalty. In fact, in a recently commissioned independent survey by 41st Parameter, a part of Experian, 17% of consumers surveyed had an online transaction declined. That equals about $40 billion lost each year due to false positives… $40 billion that could be reclaimed.
What’s even more distressing for consumers, however, is how they FEEL when their online transaction is declined. 83% of those surveyed felt upset, embarrassed or just plain angry. These powerful emotions are evident in WHO the consumer blames for the unwarranted decline – the simple fact is that consumers blame everyone; from the issuing bank to the credit network to the online merchant. Bottom line; everyone loses.
Unnecessary operational costs. Decreased loyalty. Interchange loss. Lost revenues. These are just some of the negatives to unwarranted CNP transaction declines.
This session will explore how to improve customer service and loyalty by leveraging information merchants and issues already have about consumers – including their buying patterns, methods and payment and devices they use. The combination of these and other factors creates a TrustScore which helps both the merchant AND the issuer determine if these are consumers that can be trusted – even if they only shop with a merchant on a casual basis. Recognizing customers through trusted digital identities and approving more CNP transactions in real-time provides the opportunity for online retailers to collectively boost top-line revenues by as a much as $1 billion annually.
What’s the key to commerce in the digital world? Trust. How do we know that? Here’s the data to prove it. http://bit.ly/41stinfo #vision2014 Click to Tweet
[INFOGRAPHIC] How to foster consumer trust in a digital world http://bit.ly/41stinfo #vision2014