AERO Report | Apparel & Accessories

The increasing scale of eCommerce

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The common thread in the above three trends (and the completed circle from our opening) is the increasing scale of eCommerce. Businesses today have to be able to deliver differentiated customer experiences and fight fraud and abuse—across more touchpoints and at unanticipated scale. That is precisely why leaders trust Forter; to bring insight and expertise to new opportunities, to provide the largest Persona Graph on the planet, and to apply automation that drives outcomes at scale.

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...

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.