Consumers’ perception of ‘security’ has increased in importance since the corona outbreak
The five dimensions that consumers say define a ‘secure’ webshop
In order to understand the concept of ‘security’, we asked the one third of consumers that rated this concept as important, to detail what they associate with ‘a secure webshop’. The spontaneously mentioned top-of-mind associations reveal that ‘security’ as a concept is made up of five different facets.
The primary area that online consumers associate with a secure webshop is payment and delivery (34% of associations). Within this area, the most commonly mentioned aspect was ‘reliable delivery’ followed by ‘offers trustworthy payment methods’. Other aspects mentioned span from ‘good customer service’ to ‘delivery from homeland’ and ‘order tracking’.
Second, online consumers associate financial and technical robustness of the merchant with a secure webshop (25% of consumer associations). Only 9% of all consumer associations were related to data security and privacy aspects. This is equal to the share that associate webshop security with the comfort that the webshop has been in business a long time.
The third dimension that online consumers associate with a secure webshop is related to recommendations & assortment aspects (19% of consumer associations), and here ‘good customer reviews’ is the dominant aspect.
Fourth, online consumers also associate security to the more general concepts of previous customer experiences (made previous purchases, 8%). And finally, the general strength of the merchant brand (well-known brand, 14%) is also key in consumers’ perception of webshop security.
Diving deeper into the data, we see that online shoppers in Germany associate a secure webshop more with financial and technical robustness (36% of all German consumers’ associations), in particular that the webshop has been in business a long time and having webshop certifications. But on the other hand, Germans do not associate security with a well-known brand to the same extent (10% of all German consumers’ associations). Norwegian consumers associate security more with payment & delivery (42% of all Norwegian consumers’ associations), especially around reliable delivery and trustworthy payment methods. And Dutch consumers associate ‘security’ relatively more to having made previous purchases (11% of all Dutch consumers’ associations).
From a demographical perspective, consumers aged 18-34 years old have significantly stronger associations to recommendations & assortment aspects such as ‘offer known brands’, ‘good customer reviews’ and ‘recommended by peers’ (30%). In comparison, of consumers aged 55 years and older only 14% associate security with recommendations & assortment. Consumers aged 45 years old and above associate a secure webshop significantly more with aspects related to financial and technical robustness (30%).
Offering trustworthy payment methods is essential to be perceived as a secure merchant
Now that we have uncovered which elements define ‘security’ in the mind of an online shopper, the next step is to find out how important these elements are in consumer’s perception of ‘security’. To do so, we used a multiple response list of answer alternatives containing aspects that merchants can influence in the short- to mid-term. i.e. the aspects previous purchases and well-known webshop were excluded.
Overall, results show that offering trustworthy payment methods is key. Of the consumers that rate the overall concept of ‘security’ as important, around 70% of online shoppers in The Netherlands, Germany and Norway say that offering ‘trustworthy payment methods’ is the most important aspect in defining their perception of a secure webshop.
Looking at the overall results, payment & delivery is the most important of the dimensions. 95% of consumers in Germany and Norway mention at least one aspect in this dimension as important. The corresponding share in The Netherlands is 92%. Aside from offering trustworthy payment methods, other important aspects are ‘reliable delivery’, clear payment information’ & ‘good customer service’. Notable country differences are a higher need for ‘clear payment information’ in Germany and ‘good return policy’ in The Netherlands. Dutch consumers are evidently also more used to international purchases, as only 20% in the Netherlands claim ‘having all information in local language’ is important to feel secure, whereas this share in Norway and Germany is 37%.
Aspects related to recommendations & assortment are mentioned as important by 67% of consumers in Norway, 61% in The Netherlands and 59% in Germany. In this area, Norwegian consumers have a relatively higher need for peer validation in terms of ‘has been used by someone I know, with a positive experience’.
And Germany sticks out when it comes to the area of financial and technical robustness of the merchant. Here, 81% of German consumers mention at least one aspect in this area as important, whereas the corresponding figure for Norway is 64% and 60% for The Netherlands. Notable demands that are higher in Germany in this area are ‘been in business for many years’, ‘clear information about owner of the webshop’, ‘has a stable financial situation’ and ‘share external certification about credit worthiness’.
Deep-diving into demographics, there is a strong correlation between age and the importance placed on the recommendations & assortment aspects of security. This is especially evident regarding ‘has been used by someone I know, with a positive experience’, ‘has social media accounts with lots of followers’ and ‘has many positive customer reviews’. For example, 63% of 18-24 year olds place importance on ‘has many positive customer reviews’, in comparison to 22% among consumers aged 65 years and older. For all age groups, the importance placed on the recommendations & assortment aspects of security is highest for 18-24 year olds, and decrease in importance as consumers get older.
And a gender comparison shows that women place more importance on
‘trustworthy payment methods’, ‘clear information about refund process’, ‘reliable delivery’ and ‘good return policy’ than men. No clear differences exist in between consumers when it comes to life stage, degree of urbanization and household income.
Consumers who spontaneously associated a secure webshop with previous purchases and well-known webshop also rate ‘trustworthy payment methods’ and ‘reliable delivery’ as the most important for them to feel secure.
Experienced shoppers are driven by the ‘recommendations & assortment’ aspects of ‘security’
The demands that consumers place on merchants related to security are quite different depending on consumers’ purchase frequency online. Merchants need to cater to different aspects depending on customer type.
We see that online purchase frequency is correlated to the importance placed on the recommendations & assortment aspects of security: the more frequent a consumer makes online purchases, the more importance the consumer places on recommendations & assortment aspects of security. In addition, the perception of a secure website is also more driven by merchants’ brand strength and in particular the reliance on peer reviews.
Interestingly, heavy shoppers, defined as having made 5 purchases or more online during the last two weeks, put a significantly higher importance on the merchant having ‘many positive customer reviews’ but have a relatively smaller need for having website ‘information in your local language’.
And both heavy shoppers and medium shoppers have a higher need for ‘clear payment information’ and ‘reliable delivery’ compared to light shoppers – who on the other hand put the highest importance on ‘trustworthy payment methods’.
What can online merchants do to increase consumers’ perceived ‘security’?
Online merchants can take three general aspects into account when investigating how to increase perceived security: location, brand novelty and consumers’ demographics.
When it comes to location, we see that the importance that consumers place on the aspects of security apparently differs per country/market. Identifying key aspects in consumers’ perceptions of security per market is therefore essential in shaping consumers’ perception of how secure a webshop is.
- Brand novelty
Second, a difference in level of perceived security seems to exist between established brands and newcomers. Having a superior brand awareness that attracts new customers and/or relying on previous (good) customer experiences is of course a part of being perceived as a ‘secure’ merchant. But being a younger brand not yet having built these strategic assets, there are three other tactical levers to use. For new players, social brand building, conveying a financially stable brand image and offering efficient and stable functional delivery are three key areas to work on to increase perceived webshop security.
- Consumers demographics
Consumers’ age seems to play a big role in the perception of security. Define your consumer profiles as narrowly as possible and adjust your messaging and informational pages accordingly.
Besides these general aspects, merchants can also focus on improving the specific aspects within the previously described dimensions of perceived webshop security. To which degree however, depends on how established a webshop is. For newer and online webshops, building brand awareness and a positive customer experience are key.
When looking at payment and delivery, creating a ‘secure’ perception is all about giving consumers a sense of control and generating trust. If all other aspects of perceived security are not up to par, consumers often fall back on possibilities within payment and delivery methods to mitigate their perceived risk exposure. Paying by credit card, for example, often offers insurance against undelivered items, services or fraud, and it gives consumers the possibility to chargeback any costs that they do not agree with. On the other end of the spectrum, pay-after-delivery services offer the ultimate form of security and control as consumers only pay after they have received goods and services, and are able check the contents and quality of their order.
- Do you work with well-known payment and shipping partners? Let customers know. As we have seen in our research ‘well known brands’ automatically increase perceived security and trust.
- Offer multiple delivery methods from different partners to give consumers a sense of control.
- Show the payment providers you work with clearly on your website or during check out. Transparency and providing enough and clear information are essential in shaping consumers’ perception of webshop security. In this regard, it is also essential to explain the ordering, payment and shipping process clearly during checkout and in your website’s FAQ.
- Make sure your customer support department is easy to reach. Does your webshop not offer 24/7 support? Consider adding a chat.
Using financial and technical robustness to increase consumers’ perception of security is particularly related to level of data security, how long a webshop has been operational and if external certifications are available.
- Inform (potential) customers that you have data- and privacy policies on your website and make sure to review and update these when necessary. Make them easy to read.
- Make sure you have an ‘About’ section on your webshop where you give background information on your webshop, including when it was founded and who the owner is. Also add external credit scoring if available. Transparency is key here.
- If your webshop has quality marks or certifications, make sure to mention these on strategic places in your webshop. For example on your FAQ page or during checkout.
When it comes to recommendations & assortment, consumers perception of security is heavily influenced by a visual, emotional experience, like having a well-designed website, offering well-known brands and use of online advertising, as well as social affirmations, like customer reviews and recommendations from peers and friends.
- Ask (happy) customers to leave reviews on a renowned review platform so that potential new customers include this in their consideration to purchase with you.
- Set up a ‘refer-a-friend’ campaign to generate new user growth.
- When looking for new brands to offer in your webshop, consider working with big names as well-known brands increase the level of trust with consumers.
- Consider setting up a digital marketing campaign aimed at increasing consumers’ trust and perception of your webshop’s level of security.
What is next?
Coming up is a new data set, with which we will be able to add two new data points to our ‘Trends’ tab. Next is also a detailed deep dive into how consumer behavior has developed in Fashion since the corona outbreak.