1 June 2021
Articles by digital innovation expert Andra-Bianca Muntean
We are all aware of the profound transformation that has occurred within the retail sector over the past 18 months.
The pandemic and successive lockdowns have disrupted the norms of consumer demand and accelerated an already well-established shift towards digital and mobile channels.
With millions around the world suddenly relying on technology to shop, work, study and connect with friends, it is imperative for brands and retailers to create reliable and high-quality digital experiences for their customers.
The digital shift has further enabled shoppers to leverage their ability to look for newer, better, faster and more convenient services.
Customer Centricity: The importance of understanding consumer needs
Recent events have accelerated existing trends, and new and emerging patterns of consumer behaviour can already be detected. Understanding these and responding accordingly will be essential for retail success.
Digital Identity Net commissioned extensive market research, together with engaging with the UK’s leading retail brands and banks, to uncover and better understand how today’s consumers shop and engage online.
The core element of the research highlights specific causes and concerns that drive abandonment in online retail journeys.
These range from:
- a lack of transparency regarding costs
- poor website speed
- cumbersome checkouts
- frustration at the need to register and open an account.
New customer acquisition creates a variety of pain points in the checkout journey and consumers should not have to compromise between secure and convenient processes.
Cart abandonment is an ongoing battle for online businesses, currently standing between 84% to as high as 96.8% across UK sectors.
Abandonment is also affected by device type, and conversion is more than halved on mobile devices when compared to desktop shopping journeys.
COVID-19 has also meant businesses have seen an unprecedented number of new online customers, and legacy fraud systems have struggled to identify and distinguish legitimate new users from fraudsters due to a lack of data.
Unsurprisingly, evidence suggests that a greater percentage of fraud is taking place online and on mobiles than ever. Impersonation, investment, and purchase scams have increased significantly since early 2020, with a 41% spike in identity fraud.
This has a profound effect on online retail businesses. If a customer’s first transaction with a retailer is declined, 50% will refuse to transact with this business and turn to competitors instead.
As a result, false declines not only cost organisations the individual transaction value, but the whole customer lifetime value.
This is where an assured identity solution can have a significant impact on easing the pain of complex onboarding journeys and complicated checkout processes.
How OneID can help
OneID from Digital Identity Net is the UK’s only bank-backed solution. It enables consumers to give one-time access to businesses to their validated data held by their bank.
Whenever anyone needs to be onboarded or identified remotely, this can be done using OneID – the most comprehensive whole-of-market identity solution, covering over 97% of the UK adult population with a bank account.
It might sound complicated, but it really is simple.
When a person signs up for a new online service or connects with a new business or retailer, rather than filling in the complex forms to manually sign-up, the consumer just chooses the ‘Continue with OneID’ button, authenticates biometrically using their online banking app and consents to the transfer of specific personal data.
The consumer’s validated personal information is then shared with the business and the process is complete, all with zero data entry or form filling.
Yes, zero data entry or form filling
For individuals, OneID generates benefits in a way not seen before in the UK: it empowers them to take control over their own digital identity, using it where and how they want to in a safe, secure yet simple manner.
It removes friction in their online journeys, freeing up time and reducing frustration.
For retailers and businesses, OneID brings a smoother online customer journey and eliminates some of the critical pain points that damage the customer experience.
OneID can also be used to re-authenticate for returning customer journeys, further securing and protecting businesses and consumers from fraud, an invaluable offering when the total value of fraud in the UK stood at £1.7bn in 2020, more than doubling from the previous year.
One essential element of a successful online business is knowing your customers are who they say they are.
OneID provides both businesses and customers with the security assurances needed to complete legitimate transactions in a simple, highly inclusive, customer-friendly manner.
By removing payment friction and bringing in an ally that assists in keeping up with regulations that are forcing retailers to further identify and protect their customers, businesses can also focus on further improving their customers’ online retail experiences.
OneID is currently in pilot with several organisations across industries such as retail, entertainment, sports, and education. It’s free to join and easy to implement.
Sign up today to find out more about OneID and how it can help revolutionise your customer experience.
The benefits of OneID
- Simple integration
- Reduced Cost
- Bank supported
Article originally featured in Retail Times.