Online card fraud poses major problem
It appears fraudsters are shifting their tactics online even in advance of the migration of in-store POS to EMV compliance.
The U.S. Retail Fraud Survey 2015 has reported a substantial increase in online credit card fraud. Published by Retail Knowledge and sponsored by cash handling technology provider Volumatic, the survey shows the biggest area of online loss remains, overwhelmingly, from the fraudulent use of credit cards (66%).
The cost of online credit card fraud to retailers is an estimated $1.88 billion. Currently, online sales account for an average of 6% of sales. In the next three years, retailers are estimating to achieve 15% of sales to be made online.
In addition, while retailer spending on online fraud prevention has doubled in the last two years, 58% of them are still more concerned about the ability of monitoring and analytics to deal effectively with the fraudsters by identifying and stopping them.
Study reveals three rules of mobile retail
Retail is a lot like real estate – it’s all about location, location, location.
At least this is the conclusion of the fourth annual Mobile Path to Purchase study from location-based marketing provider xAd. The 2015 report reveals that 35% of U.S. shoppers who researched their impending purchases on their mobile device expect to buy within the hour.
In addition, those who research goods and services on the go are nearly twice as likely to purchase within the hour than those at home, and have a greater likelihood to convert in store.
Also, 2015 is the first year where mobile use at home surpassed on-the-go. One-third of consumers searching at home will go on to complete their purchase on their mobile device. Half of consumers wanting to make a transaction within an hour expect to travel up to five miles from their current location.
Other notable findings include:
- Forty-four percent of consumers report their mobile devices as being the most essential aid to their decision.
- Smartphone owners under 35 are three times more likely to rely on their smartphones as their primary source of information than consumers over the age of 55.
- For quick and frequent purchases from restaurants or groceries, nearly two-thirds of respondents rely solely on mobile to research buying decisions. But even one in six consumers who used their devices for a research-intensive vehicle purchase did not rely on any other media.
- In 2015, more than half of consumers visited a business as part of their research and year over year, in-store smartphone usage is on the rise, increasing by four times since 2013.
- Sixty percent of consumers who used their smartphone to research decisions in-store made a purchase at the physical location, compared to 35% who ultimately purchased online.
Belk engages customers for holidays
Regional department store retailer Belk Inc. is using social media to make the holidays a little more fun and rewarding for its shoppers.
North Carolina-based Belk, which operates about 300 stores, has teamed up with digital marketing solutions provider HelloWorld for the return of the Santa Baby sweepstakes, now in its second year. In an effort to increase mobile opt-ins and ultimately boost brand awareness and consumer engagement, Belk and HelloWorld are allowing customers to create personalized e-cards, gifs, and TV spots.
Prizes include a $10,000 grand prize and instant win Belk gift cards.
From Nov. 7 – Dec. 31, participants will be able to enter the sweepstakes via the revamped mobile-optimized Santa Baby site, and earn additional entries by sharing the campaign on social networks, following Belk’s social media channels and referring friends to enter the sweepstakes. Additionally, entrants will be able to personalize and share Santa Baby gifs as well as customize e-cards, which will have the chance to be featured on the official sweepstakes site.
Consumers will have the opportunity to vote for their favorite commercial ending for the Santa Baby TV spot, set to air on Nov. 7. As participants vote for their favorite ending throughout the promotion period, they are encouraged to return to the site to see where their choice stands in the ranks.