Published: January 14, 2021
Reading time:  minute read
Written by: Forter Team

Unlocking the Promise and LTV of New Online Shoppers

Shoppers around the world have been quarantined at home due to COVID-19, causing a shift to digital experiences which has led to a new norm of retail.

New consumers navigating to online channels provide a huge growth engine for businesses, but merchants should be aware that new shoppers are 5-7x more likely to be declined than returning users.

This high rate of false declines, a phenomenon Forter has coined New User Missed Opportunity (NUMO), is costing e-tailers millions in lost opportunities and hundreds of millions more in lost lifetime customer value.

Key facts

  • Volume of new shoppers is 2x greater than pre-COVID-19 levels
  • New online shoppers are 5-7x more likely to be declined than returning customers by current fraud tools
  • 40% of customers who are falsely declined will purchase from the competition instead


“Every little piece of data that we have to make a good decision about the customer is key. With Forter’s machine learning and global network of user data, we’re able to make real-time decisions and scale automatically without adding more resources. Prior to Forter, embracing these new customers without creating friction would have been difficult and would have resulted in them potentially shopping elsewhere.”

Jess Carstens

Global Director, E-Commerce Operations

What is at stake for merchants?

Not only are merchants turning away a new potential revenue stream, they are also missing out on the valuable lifetime value of each of each of these customers. Using data from existing Forter network customers, it’s possible to estimate the real missed opportunity cost.

Read the full report to find out the annual missed revenue per customer

Merchants can lose up to 75x more revenue to false declines than they do to fraud.

To find out more about the impact and true costs of NUMO, read the full report here.

Get the report.


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