01. Introduction
Online shopping decisions throughout the customer journey ultimately boil down to trust. Customer verification encourages shopper engagement while allowing retailers to prevent fraud.
We collected data on the impact of customer verification on eCommerce businesses, and offer actionable takeaways you can use to boost online sales.
02. Fake Reviews Are Bad For Business
The power of social proof makes shoppers trust past buyers more than they trust branded content. It is therefore crucial that your reviews are authentic and verified. Verified reviews that identify buyers by email or social media account lets shoppers know that they are reading real reviews from real buyers. The value of that extra layer of trust shows up in their purchase decisions.
03. Know Your Customer to Drive Sales
Know Your Customer (KYC) is the process of verifying shopper identity. The concept originated with online banking and insurance companies, and is now being leveraged by eCommerce businesses to prevent online fraud, boost sales, and promote brand loyalty. Retailers who fail to correctly identify their customers across channels and devices risk turning away good business and compromising their reputation.
Invest in KYC to prevent false declines
- Every retailer wants to convert first-time shoppers into loyal customers. After all, returning customers spend 3x more, on average, than one-time shoppers.
- Retailers are 2x as likely to wrongly reject orders by first-time shoppers due to suspected fraud, compared to returning customers.
- Since they often fail to identify returning customers when using new devices, retailers treat them as first-timers, resulting in even more false declines.
Verify shoppers’ identity without adding friction
High-friction identity verification methods like 3-D Secure lead to high drop-off rates in major eCommerce markets:
Invest in frictionless identity verification methods
- Collect and analyze as many data points as possible per order. Additional info can shed light on the person behind the order and may explain mismatches that would seem suspicious otherwise.
- Familiarize yourself with resources and data sources relevant to the markets in which you operate. For example, the local Whitepages, popular social networks, or relevant IP and BIN databases.
- Remember that shopping patterns are different across markets and in different times of year. For example, expedited shipping is much more popular among legitimate shoppers during the holidays, and proxy servers are commonly used by Chinese consumers.
If all else fails: opt for text messages
Reaching out to shoppers to validate their identity should be the very last resort, as the potential damage can easily outweigh the benefit. But if you absolutely must contact a customer, use text messages:
What is Riskified?
Riskified is a leading fraud management platform.
We help retailers grow their eCommerce revenue by streamlining the order review process and delivering fast, accurate decisions backed with a full chargeback guarantee.
More Approvals
Riskified guarantees higher approval rates to reduce false decline, grow brand strength and and drive sales.
Faster Fulfillment
Riskified contractually commits to meet order review timetables to ensure faster turnaround and happier customers.
Global Outreach
Riskified reviews orders from more than 180 countries and accepts all payment methods, helping businesses extend into new markets.
What is Yotpo?
Yotpo helps brands collect and leverage reviews and photos throughout the buyer journey to increase trust, social proof, and sales.
