Regulatory Compliance Important to Online Shoppers
Blog Post16 Mar, 2022
Anti-fraud legislation creates new hurdles for online retailers in the U.K. Consumers may now experience difficulties authenticating online transactions due to the Financial Conduct Authority (FCA). As one-quarter of U.K. retail sales occur online, new technology barriers risk businesses becoming inaccessible to customers. Retailers must balance digital regulations with existing consumer expectations for convenience.
Engaging shoppers online is a growing business practice, but digital barriers can create customer disinterest. "Open and transparent" is the third lowest-performing of the 23 Reputation Factors in the U.K. – it scored 66.4 in Q4 2021. Companies in the U.K. must lean into conversations about digital compliance to alleviate confusion and maintain consumer support.
How does the U.K. public perceive corporate governance?
Perceptions of corporate accountability and transparency remain average in the United Kingdom, where the Conduct Driver scored 67.4 in Q4 2021 across the general public.
Customers' corporate governance perceptions remain higher, holding a 72.5 Conduct score in Q4 2021. In contrast, non-customers have a lower regard for Conduct, with a score of 64.0 last quarter.
While most countries in EMEA struggle to demonstrate concerns for the environment, "Operations and supply chain transparency" (66.9) was the U.K.'s lowest-scoring
in Q4 2021.
How can your company communicate regulatory compliance?
Compared to its European counterparts, the U.K. has lower perceptions of "Communicates often." Out of 18 countries measured in EMEA, the U.K. ranked in the bottom five with an average Brand Expressiveness score of 62.0 in Q4 2021. Informing consumers about new government regulations and presenting how your company is actively implementing new measures can help build a more competitive Conduct-driven strategy.
Why is this important?
The public in the U.K. values businesses' compliance with European legislation. In July 2021, over half of the U.K. public ranked "Complying with laws and regulations" in their top three most critical Conduct-related issues that corporations can address. However, 70 percent of corporations do not believe they have adequate resources to achieve regulatory compliance. Companies cannot ignore the consequences of refusing to do so; adherence to law and regulations is top of mind for stakeholders when assessing Reputation.
Are you tracking the public's awareness of your Conduct initiatives? If not, how could the implementation of these metrics further reputation growth?
How do your consumers' expectations for Conduct differ in the U.K. versus other European countries?