AERO Report | Apparel & Accessories
Calculating the real impact of NUMO
We've highlighted the overall risk of NUMO, but let’s provide a simple calculation specific to Apparel & Accessories. Our data shows the value of transactions from new users represents 4% of gross merchandise value. In a simplified formula, if you have:
Without Forter, the rejection rate for new users would be approximately 6x greater, so these businesses would be rejecting up to 3% of new user transactions. That means they would be generating:
It gets worse. Historical data suggests new users attempt 5 transactions per year, and the average customer lifetime value is 4 years. So we’re actually talking about...
- $500M
- $20M
- $0.5M
- $2.5M
- $10M
in annual gross merchandise value
of those transactions are from new users
LESS revenue
lost annual gross merchandise value
lost customer lifetime value
But that’s an example with Forter approving transactions based on our Persona Graph. Let's assume the average approval rate for all transactions is approximately 99.5% (0.5% rejection rate).
That’s NUMO, and it makes for a compelling case to invest in solutions that optimize genuine customer experience and lifetime value.
- Omni-Channel Experiences
- Account Takeovers
- New User Missed Opportunity (NUMO)
A new era of eCommerce brings new challenges
208%
INCREASE IN BOPIS/CLICK AND COLLECT
The global pandemic changed the way businesses interact with their customers. For example, Buy Online Pickup In-Store (BOPIS) or Click and Collect, increased 208% as a means of limiting contact. Naturally, Buy Online Return In-Store (BORIS) also grew substantially. The rapid growth of these channels—and consumer expectations of integrated, omni-channel experiences—makes it increasingly necessary for businesses to have a 360-degree view of the personas they interact with.
Let’s start by getting the obvious out of the way—the global pandemic has accelerated the shift to eCommerce. In 2020, eCommerce exceeded $4.3 trillion dollars, a volume originally forecast for 2025; in just 12 months, we’ve leapt forward five years. So, while the surface area for fraud and abuse has grown, the real focus for businesses has to be on growth.
That has created new opportunities and new challenges for any business transacting online.