Every time a consumer decides to shop online, they are entering a digital marketplace. Storefronts here glow on screens, and purchases happen with a couple of clicks. More often than not, a purchase is made without ever touching the product or talking to a vendor. It is a digital universe by itself where the customer is presented with a maze of stores, products and promises. Essentially a galaxy of choices. This begs the question—what really motivates a consumer to pause, explore and commit to a purchase?
The answer to that question is digital trust—something that is tangible yet invisible, and far above discounts and well captured images. It is the assurance that their information is secure, their transaction is safe, and the organisation will deliver on their promises. This is the final push that makes the consumer press on “purchase”. Digital trust is the new currency of e-commerce.
A recent global survey discovered that more than 50% consumers would abandon a brand after a data breach, and 40% deliberately seek out companies with reliable data protection. This suggests that building your customer’s trust is not something that's negotiable. A violation of this trust can lead to long-term damages to an organisation's reputation and even financial loss. In contrast, sustaining this very trust can have significant payoffs ranging from creating a sense of loyalty in your customers to encouraging dialogue about your brand/organisation.
Customers are growing more conscious of the dangers associated with online shopping as a result of data breaches and privacy issues making headlines. This has made them mindful of who they choose to trust. With this awakened sense of cautiousness, customers now expect reassurance when it comes to privacy, security, and transparency with regards to their personal and financial data. Therefore, trust today is not built through a warm handshake or even the familiar face of a celebrity endorsement, it is earned through encrypted connections, transparent practices, and the ethical use of algorithms.
To establish and sustain digital trust, organisations must focus on some of its foundational elements:
- Security and privacy: Robust security protocols like encryption, secure payment portals, and multi-factor authentication are now the minimum requirements to protect consumer data from unauthorised access and cyber-attacks. Compliance with global standards such as Payment Card Industry Data Security Standard (PCI DSS) and General Data Protection Regulation (GDPR) can further reinforce their trust by displaying a commitment to protecting customer data. Retailers that invest in these tools are not just safeguarding data; they are building invisible bridges of trust with their customers.
- Transparency: Clarity is crucial, especially when it comes to fineprint. Gaining a customer’s trust requires open and honest communication about data collection, its use, and protection. Almost half of all consumers think about switching brands when data usage policies are unclear or hard to understand. Younger, digitally native audiences are even more likely to be critical. Key trust signals that resonate with customers include transparent privacy policies, prominently displayed trust badges, and open lines of communication.
- Identity security and access control: As the e-commerce sector grows in complexity, identity security emerges as a key to managing access for both customers and employees. Effective identity management ensures that only authorised individuals access sensitive information thereby minimizing potential data breaches and enhancing consumer trust.
- Ethical and responsible use of technology: AI and automation have become a significant aspect of e-commerce, making ethical considerations around data usage and algorithmic transparency essential. Customers increasingly expect brands to be good custodians of their data and to offer transparency over AI-driven recommendations and personalisation.
In the face of advancing technology, the digital marketplace is not without its risks. Phishing, data breaches, and identity theft are constant threats.The global trust index in digital services has taken a hit because of this. Constant vigilance is an imperative. Proactive trust-building is no longer optional; once lost, trust is difficult to regain.
Innovative retailers are making trust into a differentiator. Here are some of the ways they are taking control of the trust narrative.
- Predictive security: Using AI to anticipate and eliminate threats before they materialise.
- Privacy by design: Incorporating privacy into each digital touchpoint, from checkout to chatbot.
- Real-time transparency: Fostering trust by providing real-time order status, security features, and data usage information.
- Consumer empowerment: Empowering shoppers to own their data and make decisions pertaining to it. Essentially making them active partners instead of passive users.
In the digital retail ecosystem, trust is both a shield and an accelerator. Brands that make digital trust a priority not only shield themselves against reputational and financial damage, but also open themselves to new avenues of growth and differentiation. As e-commerce continues to grow, organisations that succeed will be those that put digital trust at the centre of their vision—redesigning retail for a future where confidence is the most valuable currency.
how Infosys BPM can help?
Companies are shifting from responding to threats after they occur, to preventing them proactively by integrating safety measures through combined human insight, AI-powered moderation, and comprehensive operational frameworks. Infosys BPM provides Financial Crime Compliance services. Leveraging expertise in generative AI and digital transformation, we protect users and platforms while maintaining regulatory compliance and creating secure digital environments that support sustainable business growth.
