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Shop News
14 Aug 2007

Online shops underestimate their customers’ need for security

Lack of confidence in security leads to order processes being discontinued on the Net

Only very few retailers take advantage of security issues to build trust

Online shops hold back with security tips
Customers’ perception of security on the Net has a critical influence on online consumer behaviour. That is why data security declarations and encrypted payment methods are absolutely essential to e-commerce. While such tools have established themselves as standard in nearly all online shops, only very few retailers additionally provide their customers with tips about security. An amazing 47.2 per cent of the e-commerce community can name only one e-shop that offers its customers active advice about security—even though more than half of all mail-order companies in Germany claim to consider security tips as an important method of boosting their online customers’ confidence. These are the findings of the World Business trend scout "Sicherheit beim Online-Kauf" (Online Shopping Security) conducted for novomind AG in collaboration with Internet World Business.
Risk warnings boost confidence
As long as Internet retailers are unable to eradicate all the objective risks of e-commerce, they will need to implement measures to boost their customers’ confidence. Transparent price policies, comprehensive customer care even following a purchase and details of the current order status, for example, can do much to improve the situation. Many online retailers forget, however, that Trojan horse, phishing and virus alerts issued by the shop can also engender greater customer confidence. Only 14.3 per cent of respondent mail-order companies, for example, considered that information about Internet risks should be an element in an online shop’s offering.
Customer unease reduces online sales opportunities
Due to their lack of confidence-boosting measures, such as information on the secure handling of credit card data, Internet companies fail to exploit the great potential of such measures to build up customer confidence. A fall in sales can be the consequence. Indeed, around two out of three German online shoppers have at some time discontinued placing an order because they felt the shop in question did not seem reliable enough. About half of those who interrupted their order would have continued if a TÜV (German technical inspection authority) badge had been visible, as this would have signalled to them that their order would be in good hands.
Background information
The Internet World Business trend scout presents the results of an online survey conducted for novomind AG in collaboration with Internet World Business. The data was collected in the period from 12 to 20 June 2007. A total of 171 skilled and management personnel employed in Internet business took part in the survey.
novomind AG: innovative software for professional customer communications
novomind is a software developer in Hamburg and the fastest-growing company in the field of electronic customer communications and mail management. As the leading provider of innovative solutions for digital customer communications, novomind AG provides software for service-oriented and personalised customer dealings. The software not only optimises efficiency in customer administration significantly, it also gives the user a faster return on investment. The portfolio of the Products division includes the novomind Self-Service Suite. The software package contains all the communication modules necessary for a customer service centre on a central knowledge basis: e-mail management, virtual customer consulting and systems for interactive, real-time communication. The novomind AG Services division implements complex e-business applications. More than 40 major companies have already decided in favour of novomind technology, among them Citibank, Otto, Yello Strom and the German pension institution Deutsche Rentenversicherung Bund. Club Bertelsmann, EnBW and Mexx as well as public-sector users, such as the German Bundestag (parliament) and the German Department of Trade and Industry, have already successfully introduced novomind systems to optimise their customer communications, turnover and PR.