Trust provides insight into risk and creates a better experience for high-value customers.
In fraud prevention we focus on identifying and assessing risk to stop fraud. When you take a step back and look at fraud management from a holistic perspective, it becomes clear that assessing risky behavior is just one piece of the whole picture. The ability to identify customers who deserve your trust is also very valuable for your business. Risk and trust work together to, not only protect your business from fraud, but to ensure that trusted customers don’t experience undue friction.
The cost of acquiring new customers is always higher than retaining current ones and cultivating brand loyalty. Fraud managers tell us that they get a lot of grief from other departments, like marketing and customer service, when authentication and fraud checks create too much friction for good customers. Adding a trust score that identifies valuable customers at integration points like registration, login and checkout creates the following benefits.
- Site visitors with a high trust score can skip costly security checks for a better customer experience with less friction.
- Low risk transactions, from customers with high trust scores don’t get stuck in a review queue. This creates a more efficient process and our data shows it can reduce reviews as much as 40 percent.
- Increase revenue opportunities for new customers with high trust scores by offering special promotions, or immediately converting them to a high status VIP.
It can be a challenge for fraud teams to maintain low fraud rates and cut operational costs while at the same preserving the customer experience. The beauty of adding predictive trust scores into the equation is that it gives businesses the opportunity to, not only maintain the customer experience, but to enhance it.
Additional Resource: Download our case study about Paf, a gaming company in Finland, to learn how they've applied iovation’s predictive trust scoring to quickly identify trustworthy customers, reduce review queues, and increase revenue.