Understanding the Challenges Impacting Ecommerce Growth Today
Why Recognizing Customers Matters in Ecommerce
Recent research offers valuable insights into the challenges facing ecommerce growth worldwide. A new report from Elephant explains how many legitimate customers are being blocked from transactions, negatively impacting businesses across the globe.
The Survey Findings
Elephant conducted a survey involving 1,000 consumers across several high-growth markets. The findings indicate that almost 60% of participants faced obstacles completing purchases in the previous months, with 15% having these issues on multiple occasions. This situation highlights a dire need for improved recognition of genuine customers.
A Major Roadblock
Matthew Hertz, CEO of Elephant, emphasizes the severity of this issue, stating, "Locking out real customers from global commerce is a significant problem." He argues that misrecognition, rather than fraud, is hindering the expansion of ecommerce, suggesting that many businesses are overlooking this critical aspect.
Key Insights from the Report
The report identifies several crucial insights into consumer behavior and ecommerce dynamics:
- Approximately 70% of consumers have opted for competitors due to transaction barriers. This trend may lead to a long-term loss of customer lifetime value beyond just a single lost sale.
- Over a third of consumers indicated they would increase their spending significantly if platforms could enhance their identity recognition and build trust.
- In markets like Brazil, around 33% of consumers are turning to more adaptable competitors due to outdated trust models that misinterpret their purchasing behavior.
The True Challenge in Ecommerce
The report reveals that the actual challenge confronting ecommerce businesses is visibility rather than fraud. Traditional fraud models focus on risk detection instead of authenticating consumer intent. Without a comprehensive understanding of a customer's identity, many platforms may incorrectly choose to reject potential purchases.
Forging a New Path Forward
According to Hertz, the key to success in the ecommerce landscape is not in preventing fraud but in identifying and welcoming genuine customers. He asserts, "We must cease viewing invisibility as a risk; most individuals are not threats but simply unrecognized purchasers."
The Identity Crisis report serves as an essential resource for ecommerce companies aiming to close the Identity gap. It outlines the necessity of global identity intelligence for companies seeking to expand into less familiar markets.
Elephant's Role in Ecommerce
Elephant stands as a premier identity trust solution built for scalability. Its robust technology, supported by a vast network, offers real-time trust scores that minimize manual reviews and reduce false declines. This service helps businesses unlock revenue across various regions.
Only Elephant provides reliable, high-confidence identity insights, allowing ecommerce companies to recognize genuine users faster and more efficiently. This capability is crucial to overcoming the hurdles that stifle growth and customer engagement.
Frequently Asked Questions
What does the Elephant report reveal about ecommerce?
The Elephant report highlights how many genuine customers are blocked from completing transactions due to misrecognition, impacting ecommerce growth significantly.
Why is customer recognition important for ecommerce companies?
Recognizing customers helps avoid blocking potential buyers, thus improving customer retention and lifetime value.
What are the key findings of the Elephant survey?
Key findings include that 70% of consumers switch to competitors due to transaction barriers and many are willing to increase their spending with better identity recognition.
How can ecommerce businesses improve their customer recognition?
By adopting advanced identity verification technologies and building trust, businesses can enhance customer recognition and reduce barriers to purchase.
What is Elephant's role in the ecommerce industry?
Elephant provides identity trust solutions that help companies recognize real customers quickly, thereby boosting sales and improving overall ecommerce performance.
About The Author
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