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Q3 2017 Benchmark Report: Up to 25 Percent of E-Commerce Sessions Hijacked by Digital Malware [Press Release 8/14/2017]

Report: Up to 25 Percent of E-Commerce Sessions Hijacked by Digital Malware
Namogoo Q3 Benchmark Measures Impact of Client-Side Digital Malware on the E-Commerce Market

BOSTON – August 14, 2017 – Digital Malware is costing retailers tens of millions of dollars in lost revenue every year. To bring attention to this issue, Namogoo today released a new benchmark report that measures the impact on e-commerce retailers. The report, which is available at Namogoo’s table at eTail East, found that 15–25 percent of shoppers are not experiencing the e-commerce customer journey the way it was intended due to Digital Malware unknowingly installed on shoppers’ machines.

Client-side Digital Malware is impacting e-commerce revenue more than ever before, as new malware is created and distributed every day. Combined with widespread use of free unsecured Wifi and the ever-increasing shift in consumer shopping behavior to online, the impact is significant.

The data in the benchmark report is drawn from Namogoo’s monitoring of 500 million website sessions across a range of industries over a 6-month period (January–June 2017). The report outlines the current infection rate of consumer machines, the rate of infected online sessions, causes for fluctuation, and guidance on how online businesses can protect the customer journey and win back lost revenue.

Key findings include:

  • 15–25 percent of user sessions are infected with Digital Malware
  • During infected sessions, between 40–70 percent of malware ad injections include competitive product ads that lure or drive traffic away from a retailer’s site
  • Between 7–12 percent of sessions tested included browser bots designed to skew site analytics for the retailer through non-human activity and hide Digital Malware that had been installed
  • “Online businesses need a better way to compete with marketplace giants like Amazon and Walmart. That starts by ensuring their own sites provide an optimal customer experience – one free of distracting pop-ups and competing product ads that lure hard-earned traffic away from their store,” said Chemi Katz, co-founder and CEO of Namogoo. “Not only are shoppers unaware of why this is happening, but retailers have zero visibility into this disruptive activity. The disconnect manifests in a negative impact on customer experience, unexplained decreases in conversion rates and, ultimately, millions in lost revenue.”

    Q3-Q4 2017 Projections

    Previous years’ data shows a surge of infection rates during peak shopping seasons, such as Back-to-School (August), when infection rates jump from 15–17 percent to 20–30 percent and during the holiday season (October – December), when infection rates surge to 25–30 percent. The trend is expected to continue throughout the remainder of 2017, with rates potentially skyrocketing to 30–50 percent as the proliferation of Digital Malware continues.

    “Retailers that protect their customers from journey hijacking experience immediate increases in customer retention rates, as well as a decrease in both cart abandonment and bounce rates,” said Ohad Greenshpan, co-founder and CTO of Namogoo. “In addition, those protecting the customer journey experience significantly higher conversion rates – winning back potentially stolen revenue.”

    To read the full report and learn more about Journey-Hijack Prevention, click here to download the report or stop by Table 4 at eTail East to pick up a copy.

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