Sponsored Content - By Rich Stuppy, Chief Customer Experience Officer, Kount
Digital businesses are turning to big data to help them make faster and better decisions, particularly when it comes to approving good transactions and rejecting fraudulent ones. A vast amount of data can be used to build a complete digital identity for every customer and successfully stop fraud.
But fraud data does more than stop fraud. It also reveals hidden, yet critical, insights into your business.
1. Gaining a true understanding of customers
Marketing teams can benefit from fraud prevention data. Marketing folks know which customers are making the largest transactions, but they lack visibility into which transactions are ultimately flagged as fraud. When they study fraud data, marketing can change their assumptions and understanding of the ideal customer.
The lesson is, avoid spending marketing dollars to attract certain customers until research indicates whether those customers are real.
2. Stopping other crimes
PetSmart relies on fraud detection technology to save $12 million annually by pinpointing fraudulent orders before they’re shipped. But PetSmart is also using its fraud prevention technology to discover insights about its business that it never expected to find.
For example, PetSmart’s fraud detection system noticed that one customer was purchasing an inordinate number of dog shock collars. This caused the company to take a deeper look at the data. After investigating those transactions, PetSmart grew suspicious and went to the police. In the end, the data helped connect the customer to a human trafficking ring.
3. Welcoming the sheep in wolf’s clothing
It’s no secret that transactions originating in China may be fraudulent. Even legitimate customers in China know that their transactions will likely be declined because U.S. retailers won’t take that risk.
As a result, legitimate Chinese customers act like fraudsters by using re-shippers, breaking up their purchases into smaller volumes, and hiding the fact that they’re ordering from China.
Fraud data reveals a customer’s true intent and the high-value clients who live in risky regions. It enables you to connect with these customers and make it easier for them to do business with you.
4. Speaking the language
In another case, an apparel retailer that sold humorous T-shirts evaluated its fraud data and realized that an abnormal amount of traffic was coming from German-language browsers. It turned out that one of its shirts was a legitimate hit in Germany.
This knowledge inspired the retailer to serve pop-up ads in German on its U.S. site. The company saw a huge increase in German conversions and that boost gave them confidence to launch a successful international initiative.
5. Getting rid of toxic customers
Some customers are worth losing—consider retail arbitrage. These customers buy products online at a low price, then sell them for a higher price on pop-up e-commerce sites, pocketing the difference.
These are customers you don’t want because they’re only interested in your discounted products and loss-leader inventory. A fraud prevention platform can uncover these low-value customers.
Fraud data can do more than just stop fraud—it reveals unknown insights that lead to business transformation. In hyper-competitive, high-risk digital environments, you need every advantage. Fraud data is an ally that solves business challenges and creates value.
Interested in a learning more about how Kount can give you better data? Get a demo.