Online businesses need to build customer confidence
Consumers want more assurances from online retailers
The UK’s online economy is in danger of stagnating if businesses do not build more confidence in their customers, according to research released today by vendor Symantec.
The survey, carried out among 2,500 UK adults, says despite three-quarters of the population shopping and banking online, many are looking for additional reassurances from online retailers before spending more.
The study shows 66 per cent of consumers believe that making transactions online puts them at increased risk of online fraud, and 30 per cent agree that internet security threats prevent them from making more online transactions.
'The results from this study clearly demonstrate that consumers are desperate for a confidence boost from the businesses that they are transacting with online,' said Lee Sharrocks, consumer sales director, Symantec UK.
'Despite the high-levels of online activities, it seems that customers are curtailing their spending because of fears about security.'
The survey also found that if businesses guaranteed they would compensate their customers should their money or identity be stolen, 77 per cent of those questioned would be more encouraged to spend online.
The majority of consumers (69 per cent) would be more comfortable carrying out online transactions if they were given assurances that online retailers were taking steps to secure their data, although only 33 per cent of those questioned always check the credentials of a company before embarking on a transaction.
'With an increasing number of services becoming available online and the huge potential for further growth in online spending, these results demonstrate that businesses need to be aware of what is holding customers back and take steps to boost consumer confidence,' said Richard Archdeacon, director Symantec's Innovations Team.
A significant proportion of those questioned (30 per cent) believe that it is the responsibility of the business they are transacting with to secure their data, while only nine per cent lay the responsibility with their bank.
Consumers also expect any compensation to come from these online retailers (40 per cent), rather than from their bank or credit card company (18 per cent).
'In the past banks have traditionally been held responsible for compensating fraudulent transactions,' said Archdeacon. 'However, these results suggest that consumers want the businesses they are dealing with to take responsibility for securing their private details. This means that anyone who sells online needs to take steps to display their security credentials to reassure their customers.'
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