More and more people are making their purchases online; in the first quarter of 2022, €8.2 billion was spent, that is 7% more than in the same period last year. However, this increase is accompanied by security problems that consumers expect companies to solve for them. Companies must be able to ensure and prioritise online security without disrupting the customer journey.
Consumers expect to be protected throughout the digital journey. So companies need to build and promote an excellent reputation for safe and streamlined online activities. Investing in online security is one way to build trust in your brand – and businesses are aware that they need to meet these expectations.
Both customers and businesses are concerned about online fraud and cybercrime. 80% of Dutch consumers are fairly to highly concerned about the risk of fraud during their online activities, according to our Global Identity and Fraud Report. Cybercriminals continue to use sophisticated technologies to thwart transactions. So in order to demonstrate that your business can consistently combat fraud, you need to take a well-organised and forward-looking approach. This can be a complicated process if you do not have the right resources.
Growing usage, growing concerns, growing expectations
Experian’s research shows that consumers worldwide have suffered more than $5.8 billion in losses, an increase of 70%. Although 82% of Dutch consumers surveyed said they had never been a victim of online fraud, security (80%) and privacy (82%) are still cited as the two most important aspects when it comes to the online experience. However, the number of digital transactions is increasing and more than half of consumers plan to spend more online in the coming months. It is therefore no surprise that consumers consider security and privacy a top priority and tend to use well-known brands that they perceive as trustworthy.
To be seen as trustworthy, companies need to adapt to changing threats and expectations. This means integrating everything from biometrics to AI automation. Customers are more willing to give up personal data if it leads to safer online services. But it can also be a challenge for businesses, as they have to manage a growing arsenal of security solutions.
Protection via orchestration
Businesses need to deploy a wide range of security solutions to protect their customers online. Not only because this helps address new and existing challenges, but also because customers do not all have the same preferences. For example, Millennials prefer biometric behavioural data and Gen Z is attracted to physical biometrics. Read more about how the views on online safety differ between generations.
A variety of solutions should help increase consumer trust, but can lead to separate operational departments where cyber attacks can easily take place. With orchestration solutions, where systems are automatically configured, coordinated and managed, this can be countered. In addition, providing a single platform that brings together all your tools and data sources, and connects everything from recognition software and fraud prevention solutions to customer journey optimisation makes it easier to implement change on a large scale. Optimisation makes it possible to present the right identity and fraud service to the right customers, based on predefined workflows. Different customer journeys can thus be deployed via a single platform. Depending on specific criteria or risk appetite, steps can then be added or removed. Orchestration platforms, like Experian CrossCore, help to manage risk, meet customer requirements and coordinate the customer journey – in detail.
Outsourcing improves security
Companies also outsource IT tasks to keep up with and catch up with competitors. 27% of Dutch companies say they rely on other companies to help them. This is an important tactic to keep fraud prevention as a top priority. Outsourcing allows small and large businesses to expand their digital capabilities to an extent that would not be possible if they only used in-house resources. With so many solutions available and the pressure to provide reliable service, it makes sense to take advantage of expertise that fits the needs of your business.
It is important to properly explain why certain work is being outsourced. As a company, you have gained knowledge and experience with online transactions specific to your industry. Transferring this knowledge to external partners can smoothen the process and improve the end results. To build consumer trust in your business, you need to continuously invest in different security solutions, deploy them with the right orchestration solutions and outsource when necessary. This will result in your company being able to provide the very best security services and build a strong reputation with positive customer experiences. This is how you invest in long-term customer trust.