# How Digital Commerce Merchants Can Weather the Economic Storm
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-12
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Boost Your Revenue and Customer Experience in 2023
Meta Description: Discover how to enhance customer experience & drive revenue in the digital retail landscape. Learn the impact of personalization & frictionless
URL: https://financedigest.com/how-digital-commerce-merchants-can-weather-the-economic-stormhtml

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![Aaron Begner, EMEA General Manager at Forter](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/aaron-begner-450x352-1736814578975-compressed.jpg)

_By_ **_Aaron Begner,_** _EMEA General Manager at Forter_

As energy and fuel prices, food shopping bills and [rent spikes push the cost of living](https://www.financedigest.com/redefining-renting-tipi-launches-the-best-way-to-live-in-london.html "REDEFINING RENTING: TIPI LAUNCHES ‘THE BEST WAY TO LIVE IN LONDON’") up across the U.S., consumer [spending habits are shifting in response to these economic](https://www.financedigest.com/infosecurity-europe-agenda-spotlights-innovation-as-security-leaders-address-cybersecurity-spend-in-the-face-of-economic-headwinds.html "Infosecurity Europe agenda spotlights innovation as security leaders address cybersecurity spend in the face of economic headwinds") pressures. Findings from [Toluna’s Global Consumer Barometer Study](https://tolunacorporate.com/lp/barometer_wave19/?source=Acq-Q222-MIX-OrganicWebsite-Report-Data-TL-Glb-Barometer-LearnMore-Wave19&channel=OrganicWebsite) show that a majority of consumers think they will fare worse financially in the coming months and consumer confidence remains low at 25%.

Overall, [economic sentiments](https://www.financedigest.com/euro-zone-economic-sentiment-rises-in-january-to-seven-month-high.html "Euro zone economic sentiment rises in January to seven-month high") about 2023 are pessimistic, but U.S. consumer spending shows it has not affected purchasing quite yet. Online shopping is still reporting increased spending, [about 27%](https://www.mckinsey.com/business-functions/growth-marketing-and-sales/our-insights/how-us-consumers-are-feeling-shopping-and-spending-and-what-it-means-for-companies#:~:text=Year%2Don%2Dyear%20growth%20in%20e%2Dcommerce%20was%2027%20percent%20in%20March%202022%3B) year-over-year from 2021 and traditional brick-and-mortar stores are also benefiting.

The current economic climate has made consumers more selective about where they spend their [money and the length of time taken to deliberate over a purchase](https://www.financedigest.com/6-tips-to-save-money-on-your-next-used-car-purchase.html "6 Tips to Save Money on Your Next Used Car Purchase"). They’re more likely to spend their cash with companies they’ve grown to trust – those with longstanding excellence in customer service, consistent delivery of the products and services they love, generous [loyalty programs and those that provide unique customer experiences](https://www.financedigest.com/fintechs-how-to-increase-loyalty-through-user-experience-and-fraud-prevention.html "FinTechs: How to increase loyalty through user experience and fraud prevention").

Weathering the economic tides heading into 2023 requires merchants to deliver on 3 primary areas of focus:

**[Enhance the Customer Experience](https://www.financedigest.com/enhancing-the-guest-experience-in-hospitality.html "Enhancing the guest experience in hospitality") by Focusing on Personalization**

Thanks to digital transformation, [retailers have a big opportunity](https://www.financedigest.com/uk-retail-banks-is-irrelevance-curtailing-opportunity.html "UK Retail Banks: Is Irrelevance Curtailing Opportunity?") to set themselves apart from the competition by augmenting every step of the shopping experience — from the moment potential customers log onto a webpage through and post checkout. Based on research from McKinsey’s [Next in Personalization 2021 report](https://www.mckinsey.com/business-functions/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying), about 70% of consumers expect some level of  customized shopping experience, and 76% are disappointed when that isn’t met.

Personalization works to [boost revenue](https://www.financedigest.com/how-to-cross-new-frontiers-and-boost-revenue-during-this-time.html "How to cross new frontiers and boost revenue during this time"), as showcased by popular fast-fashion retailer Fashion Nova. In the midst of the pandemic, Fashion Nova ramped up its AI-driven personalization strategy to provide clothing [recommendations based on previous shopping habits and offer](https://www.financedigest.com/germanys-slm-recommends-shareholders-accept-nikon-takeover-offer.html "Germany’s SLM recommends shareholders accept Nikon takeover offer") alternatives to sold-out items, to help increase company revenue.

**Deliver a frictionless** [experience through checkout for good customers](https://www.financedigest.com/curating-a-fully-contactless-customer-experience-for-payments.html "Curating A Fully Contactless Customer Experience for Payments ")

Even in “normal” economic times, retailers cannot [afford to mistakenly deny legitimate customers](https://www.financedigest.com/myfirmsapp-makes-it-simpler-and-more-affordable-for-accountants-to-have-a-custom-app-in-2018.html "MyFirmsApp Makes It Simpler And More Affordable For Accountants To Have A Custom App In 2018 "). [Research](https://www.forter.com/blog/finding-numo-new-user-missed-opportunity/) shows that 40% of customers will shop with a competitor when falsely declined for a purchase and merchants can lose up to 75x more revenue to false declines than they do to fraud.

False declines and manual review friction happen because of a change in shopper location, order data inconsistencies, a larger than average order or lack of purchasing [history with the retailer](https://www.financedigest.com/pep-co-poundland-set-to-complete-fastest-roll-out-in-recent-retail-history.html "PEP & CO & PoundLand Set To Complete Fastest Roll Out In Recent Retail History").

Instead of relying on legacy-based rules to approve purchases, retailers should [invest in identity-based solutions to discern between legitimate customers and fraudsters at every step of the buyer’s](https://www.financedigest.com/buyers-shun-city-centres-for-country-villas-when-it-comes-to-lifestyle-investment-in-iberia.html "BUYERS SHUN CITY CENTRES FOR COUNTRY VILLAS WHEN IT COMES TO LIFESTYLE INVESTMENT IN IBERIA") journey. Powered by richer data and deeper context, retailers can cut down on false declines and [build better relationships](https://www.financedigest.com/can-i-please-speak-to-someone-why-building-relationships-is-still-crucial-in-digital-payments.html "“Can I please speak to someone?” Why building relationships is still crucial in digital payments") with consumers.

**Differentiate Your** [Digital Journey](https://www.financedigest.com/the-journey-towards-a-digital-bank-five-major-stages-to-successful-banking-digitalisation.html "THE JOURNEY TOWARDS A DIGITAL BANK – FIVE MAJOR STAGES TO SUCCESSFUL BANKING DIGITALISATION")

Consumers have sky-high expectations when [shopping online](https://www.financedigest.com/the-high-street-is-dead-long-live-online-shopping.html "The high street is dead – long live online shopping! "). Loyalty programs, convenient delivery options like same-day delivery, buy online and pick up in-store (BOPIS) and fuss-free returns [must be part](https://www.financedigest.com/engine-parts-makers-must-cross-valley-of-death-to-reach-ev-era.html "Engine parts makers must cross ‘valley of death’ to reach EV era") of the package. [Retailers who fail](https://www.financedigest.com/britains-next-buys-failed-furniture-retailer-made-com-400-jobs-axed.html "Britain’s Next buys failed furniture retailer Made.com, 400 jobs axed") to meet expectations risk customers abandoning their carts, but organizations that get these processes right will reap the most loyalty.

However, [opening up some of these options](https://www.financedigest.com/nexi-open-to-options-as-banco-bpm-seeks-partner.html "Nexi open to options as Banco BPM seeks partner") will widen the surface area for fraud and abuse. Merchants are challenged with balancing the desire and competitive pressure to meet consumer demands, like easy returns and fast shipping, with the risk of [digital commerce fraud](https://www.financedigest.com/fraud-in-a-mobile-digital-world.html "FRAUD IN A MOBILE DIGITAL WORLD") or the abuse of benefits such as free returns.

The good news is there is a way to differentiate your [digital journey while minimizing the chance of fraud](https://www.financedigest.com/why-an-orchestrated-digital-identity-strategy-is-vital-for-financial-organisations-in-fighting-fraud.html "Why an orchestrated digital identity strategy is vital for financial organisations in fighting fraud"). Using automated, machine learning technologies to start each consumer relationship with a [foundation of trust](https://www.financedigest.com/trust-the-foundation-of-international-remote-working-culture.html "Trust: The foundation of international remote working culture") can enable merchants to deliver a buyer’s journey that provides high value while combating abusive buyers in real-time.

**Empower the Customer**

Sensing a theme yet?

In order to [navigate the rough economic](https://www.financedigest.com/why-a-liberated-cfo-and-fintech-solution-are-a-dream-partnership-for-navigating-economic-uncertainty.html "Why a liberated CFO and fintech solution are a dream partnership for navigating economic uncertainty") days ahead, it is critical that merchants put the customers in the driver’s side of the buyer’s journey. With machine-learning-based solutions to [protect the bottom line against fraud](https://www.financedigest.com/protect-your-organisation-from-fraud.html "Protect your organisation from fraud"), merchants have the flexibility to offer personalized and competitive offerings to customers throughout the entire shopping experience.

Whether it is a peak shopping period, the current [economic slowdown](https://www.financedigest.com/the-demand-for-agile-banking-during-the-global-economic-slowdown.html "The demand for ‘Agile Banking’ during the global economic slowdown") or the introduction of new regulations, retailers should always stay nimble to minimize friction in the customer journey, maximize conversion rates and protect revenue. Doing so will enable them to [weather any storm](https://www.financedigest.com/financial-services-firms-must-cut-the-cord-in-order-to-weather-the-covid-19-storm.html "Financial services firms must ‘cut the cord’ in order to weather the COVID-19 storm") that lies ahead.


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