2018 Retail Consumer Survey Insights...v v Your customers have a story Retailers, your customers...

2018 Retail Consumer Survey Insights

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2018 Retail Consumer Survey overview

The TransUnion Retail Consumer Survey asked 2,600+ consumers about their expectations and plans for holiday shopping, payments, and views on identity verification during the 2018 holiday season.

Background

Key findings

ObjectiveTo provide powerful insights regarding consumer views and the impact intrusive prevention experiences may have on online consumers, as well as retail's bottom line.

Over 44% of shoppers say they will never buy from a retailer again after a data breach.

Almost 60% of shoppers want retailers to protect both their account information and credit card payment information.

More than 88% of shoppers are willing to go through additional verification steps to ensure safety and security during the online shopping process.

88% 60% 44%


As expected, consumers will conduct the majorityof their shopping online and half are using a mobile device

100% – I’ll do all my shopping online

75% – I’ll do most of my shopping online

50% – I’ll do half my shopping online

25% – I’ll order a few things online

0% – I prefer to shop in brick and-mortar stores

Q: What percentage of your holiday shopping will be done online?A: More than 40% of consumers will do 75% of their shopping online.

Q: When you shop online, what’s the most common device you use? A: Mobile devices are being used as much as desktop computers when it comes to online shopping.

Home PC or laptop with web browser

Mobile phone browser

Mobile phone app (e.g., dedicated store app)

Public kiosk

I don't shop online


Customers value additional security measures andwill abandon your brand after a data beach

The cost of fraud is especially detrimental to retailers during the holidays. Those able to strike a balance between sophisticated identify verification and a great shopping experience will benefit all year round.

55% of respondents said additional identity validation requirements during the checkout process is viewed positively and makes them more likely to continue their purchase.

55%

Over 44% of shoppers say they will never buy from a retailer again after a data breach.44%


Q

While cash and credit cards still serve as dominantpayment methods, over 12% of consumers will be usingalternatives, such as PayPal and mobile payment apps

55% of holiday shoppers expect to use personal credit and store branded cards for purchases.

What is your preferred payment type during the holiday shopping season?


Consumers expect a frictionless and secure experience at checkout

Using device payment technology (e.g., Apple Pay or Google Pay)

Autofill of personal information and credit information

Use of device security capabilities (e.g., fingerprint reader or facial recognition)

I don't shop online

Q: When you shop online using your mobile device, what’s important to you? A: 35% of consumers surveyed prefer an auto-fill feature to make their online shopping easier.

Q: During your holiday shopping, which type of security is most important to you on an e-commerce website? A: 6 out of 10 shoppers care most about both their account information and credit card payment information.Protection of my login ID and password

Validation of my credit card and identity information at checkout

Both account information and credit card information security are important

Neither – Security is the responsibility of the store; my priority is a good deal and fast shopping experience


Consumer spending for the 2018 shopping seasonappears strong

Almost half of consumers (48%) will spend the same amount as last year, while 23% said they planned on spending more.

QHow much do you plan on spending this holiday shopping season?


Scope of the 2018 holiday shopping season

While consumers are willing to spend some time for security, as long as it doesn’t affect their shopping habits, retailers are in jeopardy of losing customers and sales by using intrusive, e-commerce fraud prevention tools.

1. Source: Deloitte’s Retail and Distribution practice - https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-2018-survey-retail-holiday-sales-to-climb.html

2. Source: National Retail Federation - https://nrf.com/system/tdf/Documents/retail%20library/NRF-NRSS-Industry-Research-Survey-2018.pdf?file=1&title=National%20retail%20security%20survey%202018

E-commerce holiday sales expected to rise ~20% to $134 Billion.1

Loss of inventory related to theft, shoplifting, error or fraud had a total impact on the overall U.S. retail economy of $46.8 billion in 2017.2

https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-2018-survey-retail-holiday-sales-to-climb.html

https://nrf.com/system/tdf/Documents/retail%20library/NRF-NRSS-Industry-Research-Survey-2018.pdf?file=1&title=National%20retail%20security%20survey%202018


““Glen GoldsteinSVP technology, retail and e-commerce markets

To fight back against fraud, retailers must move beyond rules-based systems to embrace technology that can quickly respond to threats by incorporating information from digital and device layers.

Digital layers look for behaviors such as session velocity. Additionally, device layers can analyze attributes of the device itself (e.g., location and reputation).

The end result is the retailer properly safeguards their company while also quickly moving forward with a consumer transaction.


Establish consumer identity

Authenticate consumers

Prevent fraud

Fight fraud with a 360º view of consumers With TransUnion’s multi-faceted solution, retailers can quickly and accurately determine good customers from criminals.


Prevent fraud• Assess fraud risk of online

transactions or identities

• Identify potentially fraudulent actions or behaviors

• Investigate suspicious behavior and inconsistent data elements

§ FraudForce Device-Based Reputation*

§ SureScore Trust Indicator

§ Fraud Models and Scores

§ Fraud Prevention Exchange

§ Investigations (TLOxp)

TransUnion solutions

* Powered by iovation


Authenticate consumers

• Validate the claimed identity is who they say they are

• Utilize authentication at specific touchpoints

• Employ methods that match the risk level

§ Knowledge-Based Authentication

§ One-time Passcode

§ ClearKey Device-Based Authentication*

§ LaunchKey Multifactor Authentication*


* Powered by iovation


• Verify identity against a broad set of personal and digital data

• Utilize when an account is originated or provisioned

• Form a basis for greater identity confidence

Establish consumer identity

§ Identity Verification

§ FraudForce Device-Based Reputation

§ IDVision Alerts

§ Verified Prefill


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Your customers have a story

Retailers, your customers have spoken:• 88% are willing to go through additional steps at checkout to ensure their safety

• 60% want retailers to protect both their account information and payment information• 44% will not shop with a retailer who has had a data breach

When more than 94% of shoppers plan to purchase items online this holiday shopping season, retailers have a responsibility to protect their customers.

Visit transunion.com/idvision to learn more about TransUnion’s powerful fraud solutions.

https://www.transunion.com/idvision

Date post:	15-Mar-2020
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