Retailers Can Use Security to Combat Abandoned Shopping Carts
SANTA CLARA, Calif., September 17, 2009 - The world’s largest dedicated security company, McAfee, Inc. (NYSE:MFE), today revealed the power of security to get consumers to click “buy,” in its study Digital Window Shopping: The Long Journey to Buy. McAfee found a majority of shoppers are “digital window shoppers,” or consumers who start shopping on a site, leave for a period of time and return later to complete the sale. McAfee studied the behavior of 163 million shoppers and found that sales conversions were 11% higher for digital window shoppers who were shown a security cue, like the McAfee SECURE™ trustmark. Further, the longer it took customers to complete a sale, the more responsive they were to security cues.
“Online retailers who ignore the role security plays in converting digital window shoppers to customers are missing out on billions of dollars they can’t afford to lose in this economy,” said Shane Keats, senior research analyst for McAfee. “Many will take traditional measures to get customers to return, like reducing shipping costs or offering coupons, but more can and should be done.”
Retailers should re-examine abandoned shopping cart rates. McAfee’s study found that 65% of all shoppers wait a day or more to complete a purchase, and the average delay is 33 hours and 54 minutes. Instead of panicking, e-tailers should understand the reasons for abandoned shopping carts and implement strategies to combat consumer fears.
“Retailers shouldn’t misinterpret abandoned shopping carts – many of these potential sales return later to finalize the sale,” said Keats. “Understanding this delay is critical for merchant analytics.”
Every year e-tailers lose billions from consumers with purchase intent due to security fears, not price. In a recent Harris Interactive study, 63% of consumers said that even in an attempt to get a good deal they won’t purchase from a Web site that doesn’t display a trustmark or security policy. In 2008, online retailers lost $21 billion in online sales due to identity theft and online shopping fears, according to Javelin Strategy and Research.
How to Combat Abandoned Shopping Carts
For retailers to succeed in this hyper-competitive market, McAfee recommends the following strategies:
1) Make Consumers Feel Safe on Every Page.
Online retailers should use transparent privacy policies and security seals throughout the entire shopping experience to reassure consumers that their personal information will be safe when shopping on the site.
2) Be Patient. Don’t Panic.
When remarketing to shopping cart abandoners, there is a great risk in approaching them too soon. Likewise, when evaluating the effectiveness of a paid campaign, merchants should factor in realistic timetables for shoppers to complete their transaction. Otherwise, the retailer could annoy the customer who is window shopping or under-represent the campaign ROI.
3) Optimize the Entire Site.
Focusing on shopping cart abandonment can blind retailers to the larger issue of site abandonment. Optimizing check-out is a vital exercise, but retailers should not neglect the rest of the site. Many consumers fail to buy because the entire site experience does not feel secure.
4) Choose the Right Security Cues.
Online retailers should know not all trustmarks are created equal. A recent Yankee Group whitepaper, Trust Marks: What’s Behind the Label Counts, found trustmarks that indicate daily vulnerability scanning, like McAfee SECURE, deliver the highest level of protection, compared to reputation, privacy and SSL trustmarks.
About McAfee SECURE Service
Sites that display a McAfee SECURE trustmark must pass rigorous daily tests for vulnerabilities that pose a threat to sensitive customer information. McAfee also conducts daily network perimeter scanning, testing for more than 10,000 network and Web application vulnerabilities, security testing to ensure protection against malware, and business practice review for Web site owners and online retailers. With the McAfee SECURE service, e-commerce merchants can also demonstrate PCI-compliance, the standard for the payment card industry. The McAfee SECURE trustmark is used by more than 80,000 Web sites.
The trustmark appears on the e-tailer Web site, and also in McAfee SiteAdvisor® search results, enabling merchants to stand out in those results. Online retailers can get additional exposure in McAfee’s secure shopping portal at www.mcafeesecureshopping.com. McAfee SECURE shopping only features e-tailers who have been certified using the McAfee SECURE service and directly reaches security-conscious shoppers.
The McAfee SECURE service is available today for Web site owners. Pricing is based on the number of IP addresses or page views. For more information, please visit: www.mcafee.com/mcafeesecure.
To download the Digital Window Shopping: The Long Journey to Buy white paper, please visit: http://www.mcafeesecure.com/content/mfes/DWSCampaign.jsp.
About McAfee, Inc.
McAfee, Inc., headquartered in Santa Clara, California, is the world's largest dedicated security technology company. McAfee is committed to relentlessly tackling the world's toughest security challenges. The company delivers proactive and proven solutions and services that help secure systems and networks around the world, allowing users to safely connect to the Internet, browse and shop the Web more securely. Backed by an award-winning research team, McAfee creates innovative products that empower home users, businesses, the public sector and service providers by enabling them to prove compliance with regulations, protect data, prevent disruptions, identify vulnerabilities, and continuously monitor and improve their security. http://www.mcafee.com
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