How Fraud Protection Factors Into Brand Success
It takes a lot to build a brand that customers trust. Companies pour big chunks of their spend and other resources into developing strategies to retain customers and establish their brand among the crowd in the ecommerce landscape. For all the work that goes into developing these pillars of the business, one key component is often overlooked.
Fraud protectionIt may not be easy to immediately see how fraud protection factors into brand success. But when you think about the foundation of your ecommerce business, fraud protection can support these four crucial aspects:
- Customer experience
These also build upon one another to support the ultimate goal of reaching more customers and keeping them loyal. Fraud protection ensures each of these pillars remains strong through the customer journey. The result is an ongoing relationship with your customers instead of an end to their journey. Here’s how fraud protection supports each pillar, with a quick breakdown of fraud protection’s role in supporting your business operations and your customer relationships.
On the surface, fraud protection has benefits for your business but not for your customers. It’s all about the bottom line and declining bad orders from scammers, right? Think again: Fraud protection ensures you can deliver the best customer experience. According to an analysis by Business Insider, retailers have over-corrected on fraud prevention. The publication estimated that U.S. ecommerce merchants would lose $8.6 billion in falsely declined transactions in 2016, for example — $2.1 billion more than the $6.5 billion in fraud they would prevent. “The challenge of false declines is a real one,” said Signifyd Senior Product Manager Gayathri Somanath. “There really is no worse customer experience than essentially telling a legitimate customer that their order isn’t coming.” Big data and machine learning can help reduce the risk of both fraud and false positives to produce faster, more accurate decisions on whether orders are fraudulent or should be shipped. This greatly reduces the need for manual order reviews and ensures that orders pass quickly through fraud checks and on to fulfillment. A reliable fraud protection solution that includes guaranteed fraud protection allows you to approve more orders without worrying about anything else. We mention customer experience as the first of the pillars because it’s what matters the most to your customers. Good customer experiences that focus on the individual needs of each shopper’s preferences go a long way in establishing an authentic relationship between brand and customer. It should be the first thing you think of when fulfilling every order and before every interaction with your customers.
Building trust with your customers starts with delivering consistently good shopping experiences. Your job isn’t over after one successful order. To keep customers coming back, you must invest in growing the relationship with each customer. This can be one of the toughest tasks for an ecommerce leader, because any bad experience can put a customer off of your brand—no matter how good their previous experiences were. According to Signifyd research, 57 percent of customers have cut ties with retailers after being falsely declined for a purchase. 30 percent said they’d dump a retailer if their shopping experience required extra steps to verify their identity. Any barrier to completing a purchase is grounds for a customer to pick another retailer that can fit their needs. Fraud protection means you can trust your customers and not see them as scammers. You don’t need to add extra steps or other barriers to weed out good orders from bad when you turn over your fraud review to a machine learning-powered anti-fraud tool. A reliable fraud protection solution allows you to keep the good momentum going with your customers and preserve the relationships you spent so much time and money to cultivate. Fraud protection also proves your customers can trust you. A lot can go wrong in ecommerce shopping, from delivery issues to poorly defined return policies. Don’t add to the problem of bad customer experience. Fraud protection takes a big ecommerce problem off your plate so you can refocus on key areas in customer support and fulfillment, to do your best to ensure every order goes well. Customers won’t stick with a retailer they can’t trust.
When customers know they can trust you to deliver consistently good experiences, they form a positive perception of your brand. They can associate your brand and products with positive feelings and favorable outcomes. A good image carries more than successful customer relationships. Positive perception driven by strong operations like fraud protection can attract other businesses that want to work with you. No business can scale successfully without investing in some kind of partnership, whether it be in order fulfillment, supply chain or even a fraud solution provider. When your business scores high with customers, it’s a sign that you’re doing something right. Implementing cutting-edge machine learning-driven fraud solutions can show your forward-thinking tendencies as a business leader. The positive sentiment makes it easier to convince partners to join forces with you and scale for successful growth together. When two entities work together, it’s often because they align on important things like their values. Positive business perception reinforces why the customer picked you in the first place. Customers will notice how you care for them and nurture the relationship. A reliable fraud protection solution ensures successful ordering and payment for every order—reinforcing the positive sentiment you build for each customer.
Everything you do for your customers builds your brand. You may think brand is the first step to winning customers, but brand identity is built on the previous tenets we mentioned: customer experience, trust and perception. If you miss one of these steps along the way, you’ve lost control of your brand. Your customers will then define your brand in their own words—and it likely won’t be pretty. When deployed correctly and maintained consistently, fraud protection becomes an essential part of your brand legitimacy. Your customers know their orders will always go through, and your commitment to great customer experience is solidified. Think of how all the previous pillars support your brand ideals—you won’t make it to trustworthy brand status if the foundation lacks high achievement in customer experience, trust and perception. Strong branding will continue building success for your ecommerce business. Customers will become fans and advocates when your brand is strong. When you prove you know and understand your customers through delivering the experiences they expect, they’ll put their trust in you and increase the positive perception of your business. Your brand includes every aspect of your business. While there’s a lot to think about when investing in brand, keep communication top of mind. There’s no way to prevent every production error or delivery snafu. The best way to solve problems is to be there for your customers when something goes wrong, and do everything you can to make the situation right. Cool ideas and cutting-edge products come and go, but your brand can forever be tarnished by angry online reviews and negative word of mouth. At first glance, fraud protection doesn’t seem like an integral part of great customer experiences and brand image. With this new look into how fraud protection supports each of the key pillars of an ecommerce business, you can start building a better strategy to reach more customers and empower your current fanbase to share their love for your brand. Every order is a new chance to prove to your customers why they chose you in the first place. A reliable fraud protection solution is the key to executing each order at the highest level, every time. By: Chris Martinez, Content Strategist and Lead Blogger at Signifyd To learn more about how Signifyd can help you on your journey towards fearless commerce contact us here.