3 ways fraud data can improve business strategies
Businesses are increasingly turning to big data to help them make better decisions. In particular, they want to approve good transactions and reject fraudulent ones with greater speed and accuracy. But the fraud data that helps them create frictionless experiences for good customers — and block bad actors — can do so much more.
Fraud data can include payment details, like credit card numbers, expiration dates, and ZIP codes. But it can also include email addresses, device fingerprinting, and mobile phone numbers. It can even tell a business how long a website visitor has been a customer.
The more data a business has, the faster it can build complete digital identity profiles for every customer. And it can reveal critical insights into overall business strategies and operations.
1. It can increase ROI on marketing campaigns
The more accurate a business’s customer data, the better it can market to potential customers. For example, it’s not enough to know how many users are completing transactions if a significant number of transactions are fraudulent or leading to chargebacks. Not having that information would reduce the accuracy of the business’s conversion rate. That might lead the business to spend too much or too little on marketing some products or services.
When businesses remove fraud from their transaction data, they get an accurate picture of how many legitimate customers are buying, the business’s most popular items, the average transaction value, and more. As a result, businesses can change their assumptions and understanding of the ideal customer. And they can spend more time and resources on marketing campaigns that convert.
Just look at Fetch Rewards. Not only did the company work with Kount to reduce fraud by 70%, but they also found they weren’t marketing efficiently on some platforms. For example, Fetch Rewards’ fraud team found that TikTok was a major source of new account fraud, wherein users exploited a promotion for free Amazon gift cards. Once the company’s marketing team had that information, they could address the loophole in their campaign and improve overall results.
2. It can expand international sales and increase revenue
It’s easy for businesses to make assumptions about where their customers are in the world. And if a business is flat-out declining purchases outside of certain countries or territories, it could be missing out on revenue. Just look at Brooks Running.
The company was declining the majority of international transactions. But after gaining access to fraud and trust data from over 250 countries and territories, they could better identify good customers. And once the company started accepting international payments, they opened a sales channel worth hundreds of thousands.
“Kount is really good at giving you a lot of information at a glance,” said Chad Funk, a Brooks Running fraud specialist. “You don’t have to really dig into a lot of different things. It’s just right there at your fingertips. You’re able to form a picture from looking at the data, finding the connections between the confirmed cases of fraud that you have.”
3. It can help upsell and cross-sell to ideal customers
Not every customer is using the products it buys online. Sometimes, they’re buying products to engage in refund and return fraud or retail arbitrage. Even though these customers are completing legitimate transactions, everything they buy has a negative ROI.
But fraud data can help businesses uncover these low-value customers, particularly the number of returns or friendly fraud disputes. Knowing when site visitors have a history of returns and chargebacks can prevent the business from heavily promoting high-value or discounted items to them. On the reverse, fraud data can help businesses upsell and cross-sell products to loyal customers.
For example, Arc’teryx wanted to capitalize on new revenue channels, but first, the company needed to reduce criminal and friendly fraud. In particular, the company was seeing an increase in false reports of lost, high-value packages. But a deep well of customer location data helped the company verify deliveries and revealed insights into past bad behavior. Conversely, the company aligned identity trust data with targeted promotions to refine experiences for high-trust customers.
Let fraud data insights do more for your business
Fraud data can do more than stop fraud. It can uncover deeper insights and transform business strategies. And in today’s hyper-competitive, high-risk digital environment, businesses need every advantage they can get. That’s why Kount gives businesses access to the largest network of fraud and trust-related signals through Kount Command.
The solution uses AI and machine learning to prevent payments fraud, solve complex business problems, and improve business strategies. Kount Command comes with Datamart analytics built-in. Datamart helps businesses analyze the rich data points collected from payment transactions, customer interactions, and outcomes. It allows in-depth investigation into suspicious behavior as well as business performance. In addition, Enterprise businesses can pair Kount Command with Data on Demand to access thousands of additional customer data points.