Black Friday and Cyber Monday aren’t just about staggering discounts; they’re pivotal for retailers to generate substantial revenue and, more importantly, build lasting customer relationships. Forter’s Trust Platform played a crucial role, processing and decisioning on over $6 billion in gross merchandise value (GMV) for over 36 million shoppers across 239 countries and territories.
- Despite the pundits and predictions, consumer spending behavior is trending upward – with a 4.6% year-over-year increase in median order value in 2023.
- Regionally, average order values were on the rise – with EMEA (+11.6%) and APAC (+10.6%) leading the way.
- Beauty, footwear and apparel industries emerged as the “winning” industries from a transaction volume standpoint.
- Over 30% of consumers shopping over Black Friday and Cyber Monday were new to merchants, highlighting the period’s importance in expanding customer bases.
However, these opportunities come with a responsibility: delivering exceptional experiences. Given that over 76% of consumers have reported a negative online shopping experience in the last three months, the stakes for retailers are high. And a single negative experience can slash that customer’s lifetime value – with over 40% of consumers stating they won’t return to a retailer if their first experience is negative.
- With the rise in consumer activity also came a slight increase in fraud pressure. Attempting to hide in the crowd of good consumers, fraud pressure across retailers was up 4% vs. 2022.
- Consumers shopping across the weekend were also over six times more likely to ship an order somewhere other than their normal, preferred address. And regardless of industry, fraudsters attempt to hide in this noise – with 10-15% of fraud attempts involving some form of address manipulation.
Both data points indicate that fraudsters were adapting and attempting to (unsuccessfully) take advantage of retailers by hiding in the crowd of good consumers. Without a trusted partner in the fight against fraud, retailers leave substantial revenue on the table and create negative experiences for good customers.
- With the continued adoption of alternative payment methods, such as digital wallets and Buy Now Pay Later (BNPL), fraudsters are adapting their strategies to attempt to exploit these emerging options. Over Black Friday and Cyber Monday, Forter’s Trust Platform saw a 24% increase in fraud attempts against these alternative payment methods.
This trend emphasizes the adaptability and sophistication of modern fraudsters and underscores the urgent need for a robust and versatile partner in the fight against fraud and evolving threats. Retailers must stay ahead of these evolving threats to safeguard their transactions and maintain customer trust, especially during high-volume shopping periods such as the holiday season.
As the holiday shopping season continues, understanding consumer behavior, payment trends and security threats is vital. And with consumers indicating they are willing to spend over 56% more with a retailer they trust, the importance of establishing trust through secure – yet seamless – customer experiences has become even more paramount.
*Based on Forter’s first-party data