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 Food & Beverage. Our data shows the value of transactions from new users represents 6% 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:

If those new users would have attempted 9 more transactions in the next 12 months, and the average customer lifetime value is 4 years, then we’re actually talking about:

• $500M in annual gross merchandise value
• $30M of those transactions are from new users
• LESS revenue lost annual gross merchandise value
• $0.75M lost customer lifetime value every year
• $6.75M lost customer lifetime value every year
• $27M lost customer lifetime value every year

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.