False Declines Are Harming Retailers’ Reputation on Social Media as All Ages Voice Complaints Online

Consumers want seamless transactions, and failing to ensure this can have a drastic impact on a company reveals ClearSale, the global risk tech solution provider in its latest report.

Uncovering consumer habits, ClearSale has published its latest report Ecommerce False Declines & Consumer BehaviorThe report analyses the impact that fraud can have on consumer loyalty as well as the impact false declines will have on returning consumers, and ultimately, the retailer’s bottom line.

The Federal Trade Commission received nearly five million fraud reports from consumers in 2020 and 2021. While fraudsters are escalating attacks and devising more sophisticated strategies with the help of AI, consumers continue to increase their appetite for online shopping. The report, using original research from ClearSale, will equip retailers with crucial insights to navigate the delicate balance between customer satisfaction and fraud prevention.

Rafael Lourenco, ClearSale EVP and partner

“When customers turn away from a retailer because of a false decline, that merchant loses the opportunity for a loyal customer as well as their lifetime value, which can be significant,” said Rafael Lourenco, ClearSale EVP and partner.

“One false decline could result in $25,000 or more in lost revenue from a single customer. That’s why it’s so critical to get this report into the hands of online retailers so they can make informed decisions about their customers’ purchase experience.”

Key findings from the report include:

Consumers are sensitive to fraud. Eighty-three per cent of customers stated that they would not return to a retailer that failed to protect them from fraud.
Widespread false declines are an issue. In 2022, 25 per cent of respondents experienced false declines, with 36 per cent encountering multiple instances.
False declines = social media outcry. Across all age groups, consumers indicated a tendency to voice grievances on social media platforms, ranging from 22 per cent of Baby Boomers to 41 per cent of Gen Zers.
False declines are impacting retailers’ revenue. Alarmingly, 65 per cent of false declines were later validated as legitimate transactions, resulting in significant revenue loss.

In addition to highlighting consumer perceptions and behaviours, ClearSale’s report offers actionable strategies for fraud prevention and enhancing the customer experience in e-commerce.

The post False Declines Are Harming Retailers’ Reputation on Social Media as All Ages Voice Complaints Online appeared first on The Fintech Times.

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