For some retailers, a seamless customer experience doesn’t only mean offering omnichannel solutions and loyalty programs. When it comes to luxury jewelry shopping, it also means frictionless fraud protection.
Jeweler James Allen was aware of the risk of online fraud, and it has been successful with its loss prevention efforts. The company, which specializes in high-quality diamonds, has used several different companies for fraud protection for more than a decade. But while these solutions prevented losses they also interfered with the shopping experience. Tight rules meant lower approval rates and a loss of sales, while also dimming the company’s customer service luster.
James Allen leveraged Forter, an e-Commerce fraud protection and detection service provider, to help manage fraud protection without unduly affecting its customers. The company also wanted to eliminate calls made to validate customers’ identities and additional identifying information. With help from Forter, James Allen was able to:
- Reduce friction internally and for its customers;
- Provide a seamless purchase experience; and
- Improve chargeback approvals by 15%, which contributed directly to the company’s bottom line.
“The reason we engaged Forter is not because we had a chargeback problem, but because we had a customer service problem,” said James Schulz, COO of James Allen in an interview with Retail TouchPoints. “As our volume has increased year-over-year, we found that the number of orders that we’ve had to manually review was increasing. And it became a bigger and bigger issue, and it became an unpleasant experience for some of our customers.”
James Allen deployed Forter’s Decision as a Service technology, which uses machine learning refined by human expertise to provide instant approve and/or decline decisions for transactions. Forter’s system pulls data from numerous sources and technologies, such as behavioral analysis and cyber intelligence, to ensure accuracy. James Allen was able to use Forter’s real-time decisions as a fraud detection tool, and to evaluate transactions from anywhere in the world.
“When we were introduced to Forter, we found it interesting that they were doing fraud prevention and analysis in a different way than some of the techniques we’ve seen in the past,” said Schulz. “What we liked about them was that they weren’t doing just the pure, score-based system that just looked at several data points and spit out a number. We were beyond that with the maturity of our company and the proficiency that we had internally for doing fraud. We needed more than just a scoring program; we needed something that really looked at behavior.”
Simply by leveraging the Decision as a Service technology, James Allen was able to rely on its own fraud protection team to keep chargebacks to a minimum. Forter helped facilitate a frictionless purchase process that included:
- Faster confirmation for customers;
- Minimal backlog issues during busy shopping periods; and
- More satisfied, less irritated customers, which resulted in fewer order cancellations.
“We’ve been able to significantly reduce the number of customers that we have to contact for follow-up,” said Schulz. “By using Forter as an adjunct to our internal aptitude and staffing, we found that we can get people from point A to point Z — from the moment they arrive on the web site for the first time, to the moment they receive their package with their beautiful diamond ring. We can do that more quickly and we can do it in a way that’s an even more positive experience for the customer.”