Hot Topic has partnered with Signifyd to revamp its online order approval process and reduce false declines. The retailer’s recent ecommerce growth has been hampered by its manual fraud review process, which was time-consuming and resulted in too many mistaken rejections of legitimate orders.
Using the Signifyd Commerce Protection Platform, the retailer was able to use its database of previously seen customers to instantly recognize new Hot Topic shoppers as legitimate buyers. As a result, 94% of previously declined orders were subsequently approved, and approval rates jumped to 99%. Signifyd’s machine learning models also offered full order automation; Hot Topic’s previous manual review process took up to 24 hours to process orders.
“While we needed to automate order fulfillment for our customers to stay competitive, we couldn’t process the volume of online orders we were receiving while also feeling confident that we were filtering out fraud,” said Steve Vranes, CEO of Hot Topic and BoxLunch in a statement. “So instead we had to increase manual review before approving orders, and that significantly delayed orders for loyal customers.”
Hot Topic has seen “a multimillion-dollar uplift” in annual revenue since the partnership started. “That doesn’t even begin to capture the additional revenue we will gain from customers who had a great experience and are going to come back and shop more with us,” said Vranes. “And to do that well, we have invested in the best technology to transform every step of our customer experience.”